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Blog posts from Annual Reporting Posts
Distributions of profits to holders of equity instruments in proportion to their holdings of a particular class of capital. IFRS terms or definitions come from the Official Journal of the European Union (© European Union, https://eur-lex.europa.eu). Individual jurisdictions around the world may require or permit the use of (locally authorised and/or … Read more
Topics hide Stock dividends EPS implications Stock dividends with bonus element Case – Stock dividends with cash alternative – Without bonus element Case – Stock dividends with cash alternative – With bonus element Stock dividends Stock dividends are dividends paid to the ordinary shareholders of an entity in the form of additional ordinary shares rather … Read more
Topics hide EPS (Earnings per share) Step 1: Determine the numerator Original issue discount (premium) on increasing-rate preference shares Differences on settlement Returns on participating equity instruments and other classes of ordinary shares Obligation to cover NCI losses Step 2: Determine the denominator When shares become outstanding – General principles Should these shares be included? … Read more
Topics hide IAS 33 Earnings per Share IAS 33 Presentation IAS 33 Earnings per Share IAS 33 Presentation 66 An entity shall present in the statement of comprehensive income basic and diluted earnings per share for profit or loss from continuing operations attributable to the ordinary equity holders of the parent entity and for profit … Read more
Topics hide IAS 33 Earnings per Share IAS 33 Objective Scope Definitions IAS 33 Earnings per Share IAS 33 Objective Scope Definitions Objective 1 The objective of this Standard is to prescribe principles for the determination and presentation of earnings per share, so as to improve performance comparisons between different entities in the same reporting … Read more
Topics hide Cloud based software Cloud accounting – a different business model What are the types of cloud? Approaches to cloud accounting Does the arrangement include a software license? Costs of implementation and data migration Amortisation of capitalised costs – the useful life What to think of….. Cloud based software Historically, companies acquiring IT and … Read more
Topics hide Accounting for mergers The acquisition method in accounting for mergers Reporting business combinations and avoiding surprises Effect of deal terms on the accounting for business combinations Accounting for mergers Mergers and acquisitions (business combinations) can have a fundamental impact on the acquirer’s operations, resources and strategies. For most entities such transactions are infrequent, … Read more
Topics hide Goodwill or bargain on acquisition – in short Business combinations Summary of purchase consideration and cash flows Analysis of cash flows Assets acquired and liabilities assumed Fair value measurement Intangible assets Goodwill or bargain on acquisition – in short Goodwill is initially measured at cost, being the excess of the aggregate of the … Read more
An asset is identifiable if it either: is separable, ie capable of being separated or divided from the entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identifiable asset or liability, regardless of whether the entity intends to do so; or arises from contractual or other legal rights, … Read more
Use back button from the brower A bargain purchase involves assets acquired for less than fair market value. In a bargain purchase business combination, a corporate entity is acquired by another for an amount that is less than the fair market value of its net assets. Current accounting rules for business combinations require the acquirer to … Read more