cuongtd

Benjamin Franklin once wrote: “In this world nothing can be said to be certain, except death and taxes“. Income tax is something that can hardly be avoided by a profit-making company. You might find filling-in the tax return a demanding task because everything must be correct – otherwise you are asking for penalties from your … Read more

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 comes to setting the tax base of assets or liabilities, … Read more

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 showing assets in their accounts had to reassess their book … Read more

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 businesses decided to do something about these risks and started … Read more

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 common in these days. In fact, their volume is rapidly … Read more

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 need to restate your comparative figures for the previous reporting … Read more

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 questions I received: “Dear Silvia, we are a manufacturing company. … Read more

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 that? Because the statement of cash flows is THE ONLY … Read more

These days people use about 180 currencies world wide! The truth is that  we, people, don’t want to stay isolated.  We love to sell, buy, import, export, trade together and do many other things,  all in foreign currencies! When you look at the business world, you’ll see that business go global in two ways: they … Read more

The first thing you need to do before you even start to play with hedge accounting is to determine the TYPE of hedge relationship that you’re dealing with. Why? Because: the type of hedge determines your accounting entries. Make no mistake here. If you incorrectly identify the type of the hedge, then your hedge accounting … Read more