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Today’s accounting world works on a single set of accounting and financial reporting standards. As a basis, IFRSs happen to play a crucial role. Nowadays, we are witnessing a huge progress of convergence to IFRS—not only by US GAAP, but also other countries are adopting more and more IFRS rules to their own accounting rules. I … Read more

In the first part of this small series, we have explained preparatory steps for making transformation of local accounts to IFRS. Here, we continue with summing all this up and preparing transformation bridge as the basis for IFRS accounts. Step 3: Prepare a bridge in excel and enter all adjustments in there What do I mean by … Read more

How many times did you sit with the head in your hands worrying about the statement of cash flows? Lots of work, preparation, calculations, adjustments…. and damn it, figures just do not add up! It’s very frustrating and creates headaches. I’ve been there. You might find making cash flow statements one of the most challenging … Read more

When you deal with leases in accordance with standard IAS 17 Leases, FAS 13 or any other applicable standard, you know for sure that the lease should be measured, whether initially or subsequently, using interest rate implicit in the lease in the first instance. In other words, when you use interest rate implicit in the … Read more

Dealing with impairment of assets, or cash generating units (CGU), involves one quite difficult task – to determine asset’s / CGU’s recoverable amount. Sometimes it might be an easy job, especially when fair value can be established and it is probably higher than value in use. But when there is no fair value available (or … Read more

Recently, during my lecture about financial instruments, I got a very interesting question from one clever participant. To give you a little background: He was a finance guy working in a huge company and for sure, he came across various accounting issues and problems. One of his tasks was to prepare valuation of corporate bonds … Read more

Have you ever seen some article with huge chunk of text? How appealing was it to you? Probably not that much. Frankly speaking, when I see such a piece, I just don’t read the text in the first instance. I quickly scroll through it, look to the pictures, tables or other interesting bits and then I … Read more

International Financial Reporting Standards are usually presented in a certain structure. Most of IFRS is clearly subdivided into several chapters that carry their titles, for example: Recognition, Measurement, Derecognition etc. This article defines the main terms as used in IFRS and shows example of their application. Recognition Recognition is recording a business transaction in an entity’s … Read more

From the certain point of time, we have started to receive a lot of questions about certification of our training. Truly speaking, I understand that no one watches videos on IFRS just for fun, but also in order to improve professional qualification and gain some CPD units, if possible. Here, let me emphasise the main goal … Read more

IAS 17 Leases deals with the accounting and financial reporting of the very common business transaction—lease. Leases are the great example of “off-balance sheet” financing if not recorded properly in the financial statements. In the past, many companies used to hide their finance lease liabilities and they reported all lease payments directly to profit or loss … Read more