Annual Reporting Posts

Blog posts from Annual Reporting Posts

Goodwill

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An asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognised.         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 … Read more

Note 1 Cash and cash equivalents

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Topics hide Definition of cash and cash equivalents Demand deposits Short term maturity Investments in equity instruments Changes in liquidity and risk Cryptocurrencies Short-term credit lending and cash and cash equivalent classification Cash pool systems Restricted cash and cash equivalents Foreign currency differences Example 1 of disclosure cash and cash equivalents Example 2 of disclosure … Read more

Constructive obligations

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Use back button from the brower Topics hide Constructive obligations The definition – Recognition of provisions Voluntary retirement scheme Earnings management Asset retirement obligation Joint ventures – transition from proportionate consolidation to the equity method Constructive obligations Usually an obligation arises as a consequence of a binding contract or from a statutory requirement. An obligation … Read more

Operating cash flows under IAS 7

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Topics hide Operating cash flows Indirect method cash flow statement Direct method cash flow statement Common cash flow classification errors in practice Classification of interest and dividends Disclosure of changes in liabilities arising from financing activities Operating cash flows Cash flows must be analysed between operating, investing and financing activities. For operating cash flows, the … Read more

Startup valuation

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Topics hide Startup valuation Characteristics of young companies Valuation Issues Valuation Rules of thumb Traditional methods of valuations Risk Factors Summation Revenue multiples Sources of investment Factors Impacting Valuation/Forecasting method Case – Secure Mail Software Startup valuation If every business starts with an idea, young companies can range the spectrum. Some are unformed, at least … Read more

Example accounting policies

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Topics hide Example accounting policies Example accounting policies guidance Whether to disclose an accounting policy Change in accounting policy – new and revised accounting standards Early adoption of accounting standards Standards and interpretations issued but not yet effective Financial instruments Employee benefits Reclassification Other potential disclosures Example accounting policies 25 Summary of significant accounting policies … Read more

IAS 8 Accounting policies

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Topics hide IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors IAS 8 Accounting policies IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors IAS 8 Accounting policies Selection and application of accounting policies 7 When an IFRS specifically applies to a transaction, other event or condition, the accounting policy or policies applied … Read more

Business Combinations – IFRS 3 Objective Scope

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IFRS 3 Business Combinations IFRS 3 Objective Scope Objective – IFRS 3 Objective Scope 1 The objective of this IFRS is to improve the relevance, reliability and comparability of the information that a reporting entity provides in its financial statements about a business combination and its effects. To accomplish that, this IFRS establishes principles and … Read more