How to Measure Fair Value in Agriculture – IAS 41 and IFRS 13

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Agriculture is a huge sector, significantly contributing to the world’s GDP. According to the World Bank, in 2018 the value added in the agricultural sector represented 10.39% on total GDP in average – which is HUGE! After all, we all need to eat. Besides its importance as an industry, agriculture is very interesting accounting subject. … Read more

Coronavirus and IFRS – What is happening?

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Over past few months, coronavirus became the most mentioned word everywhere. No wonder – not only it takes lives of our dear ones, but it also affects our daily life in many different ways. In many countries, people cannot go to work, kids cannot go to school, shops are closed, machines are silent, the buzz … Read more

A Glossary

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A closer look at IFRS 15 the new revenue model

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(adsbygoogle = window.adsbygoogle || []).push({}); Last update 05/03/2020 A closer look at IFRS 15 the new revenue model – IFRS 15 establishes principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a … Read more

IFRS 3 Fair value of contingent consideration

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Last update 14/01/2020 IFRS 3 Fair value of contingent consideration – Contingent consideration often involves the buyer transferring additional consideration to the seller if certain performance targets are met in the future. This allows the buyer to share the risk associated with the future of the business with the seller by making some of the … Read more

Revolving credit facilities IFRS 9

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Last update 14/01/2020 Revolving credit facilities IFRS 9 – The 2013 ED specified that the maximum period over which expected credit losses (ECLs) are to be calculated should be limited to the contractual period over which the entity is exposed to credit risk. This would mean that the allowance for commitments that can be withdrawn … Read more

How to Account for Cryptocurrencies in line with IFRS

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When I heard about cryptocurrency Bitcoin for the first time, I could not make up my mind: Is this just a new hype that will go away soon? Or, is this something valuable that will remain here for years, some new asset worth to invest in? I am not going to write my personal opinions … Read more

Operating activities

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Last update 14/01/2020 Topics hide Operating activities Financing activities Investing activities Why IAS 7? Performance indicator – Operating Cash Flow/Net Sales Free Cash Flow  Example Statement of cash flows Operating activities Operating activities Definition: The activities of the entity that are not investing or financing activities. Cash receipts and cash payments resulting from operations, items … Read more

Investing activities

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Last update 14/01/2020 Topics hide Investing activities Financing activities Operating activities Why IAS 7? Performance indicator – Operating Cash Flow/Net Sales Free Cash Flow  Example Statement of cash flows Investing activities Definition: The acquisition and disposal of long-term assets and other investments not included in cash equivalents. Cash receipts and cash payments relating to non-current … Read more

IFRS 17 Full retrospective approach

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Last update 13/01/2020 IFRS 17 Full retrospective approach – When insurers apply IFRS 17 for the first time, the transition provisions of IFRS 17 require full retrospective application. However, a modified retrospective approach or a fair value method are allowed under circumstances where the full retrospective approach is impracticable. Applying the full retrospective approach for … Read more