IAS 7 Statement of Cash Flows
Ignoring an accrual principle??? What?! No way! That’s the basic accounting rule we should all follow! Yes, of course, you’re right. BUT: There IS an exception. The statement of cash flows. Preparing the statement of cash flows might become the biggest accountant’s nightmare. Why is…
Our machines are fully depreciated, but we still use them! What shall we do?
Do you work in the production company? And did you find out that some of your production assets are still in operation but they were fully depreciated? In this case, the original estimate of machinery’s useful life proved to be incorrect. Here’s one of the…
Top 5 IFRS 2014 and 2013 Changes
The year 2013 started off with some really significant IFRS amendments that you need to take into account when preparing your IFRS financial statements as at 31 December 2013. Although these changes should be applied in the year 2013 for the first time, you also…
IFRS 2 Share-Based Payment
Does your company remunerate its top management by granting them own shares? Or, do employees receive bonuses based on the increase of the company’s share price? Transactions whereby companies pay for the goods or services received by issuing shares or similar instruments are very…
Hedge Accounting: IAS 39 vs. IFRS 9
Business world as of today presents a huge amount of various risks to almost every company or entrepreneur. I’m sure that also your company faces at least some of these risks: foreign currency risk, price risk, inflation risk, credit risk – just name it. Many…
IAS 36 Impairment of Assets
Did you know that the world-wide economic crisis followed by the recession caused a sharp downfall of assets’ prices? In some countries, the prices of property fell by 30-50%! Such a steep and fast decrease had an impact on the IFRS financial reporting, too. Companies…
The Unconventional Guide To IAS 12 Tax Bases
Last week I published an article with summary of the standard IAS 12 on Income taxes. It’s not an easy text to read and some definitions in IAS 12 are so obscure that many people grope in the fog unsure what to do. When it…
2 Steps to Distinguish Other Comprehensive Income from Profit or Loss and Changes in Equity
Update 2023 – please scroll below to download 1-page infographic summing this all up. Totally free. Some time ago, standard IAS 1 Presentation of Financial Statements significantly changed and introduced the statement of other comprehensive income. And then it began: lots of confusion, frustration and…
IFRS 13 Fair Value Measurement
Many IFRS standards require you to measure the fair value of some items. Just name the examples: financial instruments, biological assets, assets held for sale and many other. In the past, there was limited guidance on how to set fair value; the guidance was spread…
How to Account for Compound Financial Instruments (IAS 32)
Compound financial instruments became very common way of raising cash by many companies, but their shareholders don’t like them that much. Why? Because many compound financial instruments contain the option to convert into shares. Just imagine you purchased convertible bond that gives you the right…
