How to Present Financial Instruments under IAS 32
There are three IFRS covering the area of the most complex IFRS topic – financial instruments: IAS 32 Presentation of Financial Statements – this standard contains basic definitions and rules for presenting of financial instruments; IFRS 7 Financial Instruments: Disclosures – here, you can find…
How to Account for Intangible Assets under IAS 38
Is it an asset or an expense? How to account for amortization? What if the asset has indefinite useful life? Learn here in our newest article with the video in the end!
What to disclose under IFRS 7 Financial Instruments: Disclosures
About 3 years ago, I was reviewing the financial statements of a medium-sized company providing consumer loans. They needed the IFRS financial statements due to lots of loans taken from foreign banks. Usually, these banks require bigger debtors to provide the financial statements annually. So…
How to Present Earnings per Share (IAS 33)
If you invest your savings to the purchase of some shares on the stock exchange, then you probably perform some analysis in order to select the right stock. Well, this is at least what you should do. Still, your own hard-earned money needs to work…
How to Make Consolidated Statement of Cash Flows with Foreign Currencies
Did you know that many groups prepare their consolidated cash flow statement completely incorrectly? And, if you are well-experienced accountant, you can actually spot the faulty numbers instantly when you look to the statement of cash flows. Sadly, this wrong method is often taught in…
IFRS 9 Financial Instruments
IFRS 9 Financial Instruments is one of the most challenging standards because it’s sooo complex and sometimes complicated. It belongs to the “Big 3” – the three difficult standards that need to be implemented in the near future: IFRS 9 Financial Instruments: adoption date =…
IFRS 16 Leases – Summary
In January 2016, the new standard about lease accounting IFRS 16 was issued and it introduced a few major changes. The most significant are: New definition of the lease can cause that some contracts previously treated as “service contracts” can now be treated as “lease…
Summary of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
When a company (or another entity) plans to sell an asset and / or stop some part of its business, then it might affect its future cash flows, profitability and overall financial situation. Therefore, the users of financial statements, mainly investors, should be informed about…
Summary of IAS 40 Investment Property
Many accountants falsely believe that there’s only one standard that deals with long-term tangible assets: IAS 16 Property, Plant and Equipment. While it’s true that you need to apply IAS 16 for most of your long-term tangible assets, it’s not the one ruling all. I…
IFRS 15 Revenue from Contracts with Customers – Summary
In the past few years, the revenue recognition rules changed dramatically with introduction of the new standard IFRS 15. All affected companies face a lot of challenges and work related to the proper implementation of the new standard. I have written 2 articles about the…
