IFRS Box

Climate-related disclosures as arranged by IFRS S2 affect literally every single company without exception (I mean those issuing reports under IFRS). Yes, I know this is a strong statement, but if you keep reading, you will find out why and how. IFRS S1and IFRS S2 function as one package. They are intertwined, working together and … Read more

so, what is IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information about? As its title says, it is about the general requirements for disclosure of sustainability-related financial information. As a result, you will not find any specific rules for the disclosures, because IFRS S1 serves as a framework for your reporting. It is … Read more

It is here. Two newest standards, IFRS S1 and IFRS S2, were published in June 2023. I think that’s not news for anybody with two eyes and ears, because the information spread everywhere. Well, my usual approach is rather practical, so I will skip all these talks about WHY we need sustainability and WHY it … Read more

when it comes to taxes, the world can sometimes feel like a vast and intricate puzzle. Different countries, different rules and different rates. Hmmm, that sounds like a good scope for tax planning departments of huge corporations, isn’t it? Why not designing some nice and complex schemes to shift tax liabilities to the tax jurisdictions … Read more

The standard IFRS 15 has been with us for a while now, yet I still receive the same question: What precisely is 5-step model and should we really apply it to even the simple shop sales to the customer? The short answer is YES, you should, because 5-step model represents five steps that you should … Read more

Expected credit loss challenges many experienced accountants and finance people, because it contains the element of uncertainty and some sort of guessing or estimating what can happen in the future. That’s why it is “expected” after all. I wrote a few articles about the process of applying ECL in your accounts, so let me just … Read more

Recently I got across the interesting question. One lady working for a company adopting IFRS for the first time asked me if they can still mark their financial statements as compliant with IFRS, if they do not apply projected unit credit method, but do apply everything else. In her view, it was extremely difficult and … Read more

To err is human. But the following mistakes are not the ones you can afford to make in a board meeting or a job interview. Because, no matter how right these notions sound or how prevalent these views are, they are still very “wrong”: IFRS 17 is for insurance “companies” IFRS 17 is for “all” … Read more

Lockdowns stripped many businesses of their revenues due to temporary closures and ban on activities. However, businesses still have assets and related expenses. For example depreciation. Many businesses still need to charge the depreciation despite having zero revenues, and as a result they end up in a huge loss. Can you do something about it? … Read more

Warren Buffett once said: “Other guys read Playboy. I read annual reports.” This is a profound statement indicating that Warren Buffett actually takes his time to go through a complete annual report, including the financial statements and notes. Thus, Mr. Buffett does NOT consider the numerical information about the company as sufficient for him to … Read more