IFRS Box

Companies are very watchful when it comes to an audit of their financial statements. How to deal with our auditors? Do they know everything? Should we listen to them? Can they force us to do something we don’t want? I worked as an audit assistant, audit senior and audit manager for some years and I … Read more

In January 2016, IASB issued another important and long-discussed standard: IFRS 16 Leases that will replace IAS 17. Ever since then I receive lots of e-mails asking me to sum up what’s new. OK, so here you go. In this article, you’ll learn about the main changes that IFRS 16 introduces to the accounting for … Read more

A few weeks ago I published an article about top 3 dilemmas with your auditors and I wrote the story about a company selling mobile phone credits via its machines. I explained that the company served as a medium of sale and was not responsible for providing telecom services to the end users, but still … Read more

During my ACCA studies some years ago I had an amazing tutor. He was very smart, always to the point and on top of that, I simply loved his dry British sense of humor. When we talked about inventories, he told us a story about an audit assistant performing audit in a big distribution company. … Read more

Hedge accounting belongs to the most difficult accounting areas and I published a few articles on this topic on IFRSbox – for example, here and here. Today, I’m delighted to present another hedging article written by Mr. Kevin Mitchel,Partner – Advisory Services at Rochford, the leading treasury advisory house in Australia advising on in excess … Read more

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 tried to falsify this myth some time ago here. Except … Read more

Group accounts are a very popular topic and yes, I can understand it as it’s a main topic for many accounting exams. I have written a few articles about it, including: Intro to group accounts and consolidation; Example: How to consolidate; and a few summaries of standards dealing with these issues, such as IAS 28, IFRS 3, … Read more

When you acquire a long-term asset, you can include directly attributable costs to the initial measurement of its cost. Although IFRS define directly attributable expenses quite clearly and provide a few examples, there are many different items we are not sure about. In this article, I decided to look at directly attributable expenses with a … Read more

I am a passionate reader. I read A LOT. I read EVERY SINGLE DAY, usually 1 or 2 hours (I almost never watch TV though). It makes about 100+ books plus tons of articles each year. I started to read when I was 4. That time, I read only fairy tales and stories in my … Read more

When a company acquires certain types of long-term assets, it sometimes has an obligation to remove these assets after the end of their useful lives and restore the site. Typical example of such an asset is an oil rig or a nuclear power plant. When an oil rig, a power plant or similar construction fulfills … Read more