Acquisition date

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Last update 31/07/2019 IFRS 3 Definition: The date on which the acquirer obtains control of the acquiree. The second step in applying the acquisition method, subsequent to identifying the acquirer, is to determine the acquisition date. Simply put, the acquisition date is the date on which the acquirer obtains control of the acquiree. In general, … Read more

About FAQ | IFRS

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Last update 29/09/2019 There are a lot of websites and more traditional outlets providing information on International Financial Reporting Standards (IFRS). The actual standards issued by the International Accounting Standards Board (IASB), publications from audit firms, worldwide and country-by-country, providing implementation and change services, books from (educational) book publishers providing the theory and history of … Read more

Accurate information

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Last update 06/01/2020 Accurate information – The principle that financial reporting measurements should be accurate seems to be indisputable, though because such measurements are often subjective or matters of convention, accountants are sometimes reluctant to use words like accuracy in case they give a misleading impression of certainty or objective reality. Some commentators regard accuracy … Read more

A court case

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Last update 15/12/2019 A court case – Example on recognising and measuring provisions Just to provide the right frame for the case here is a short introduction of the key features of IAS 37 needed to judge the court case. Topics hide Key definitions [IAS 37 10] Recognition of a provision The case A court … Read more

Accrued benefit

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Last update 06/01/2020 Accrued benefit – the amount of a participant’s benefit obligation (i.e. his/her right to a retirement pension at a certain moment in time) (whether or not vested) in a pension plan as of a specific date that is determined in accordance with the terms of the retirement plan and based on compensation … Read more

Accrual accounting

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Last update 05/01/2020 There are two basic type of accounting methodologies – one is cash accounting and the other is accrual accounting. Accrual accounting depicts the effects of transactions and other events and circumstances on a reporting entity’s economic resources and claims in the periods in which those effects occur, even if the resulting cash receipts … Read more

Accounting policies

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Last update 30/07/2019 IAS 8 Definition: The specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements. Accounting policies are procedures an entity uses to prepare its (consolidated) financial statements. Unlike accounting principles, which are rules, accounting policies are the standards for following those rules and define the … Read more

Ability to use power to affect the returns

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Last update 10/12/2019 “The ability to use power to affect the returns” means that an investor controls an investee not only if (s)he has power and exposure to its returns but also the ability to use its power to affect these returns. If not, an investor which has decision-making rights with regard to an investee … Read more

What is IFRS?

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IFRS stands for International Financial Reporting Standards and it is a set of principles and rules for reporting various transactions and items in the financial statements. Just like United States have their US GAAP, Canada has its Canadian GAAP, United Kingdom has its UK GAAP etc, the WORLD will have its world GAAP that is under … Read more

How to Learn IFRS (Part 1)

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The world has been constantly moving to the single set of global accounting rules. There is a strong ambition to adopt IFRS as a unified set of financial reporting standards all over the planet by 2015. So yes, I understand that accountants and other finance people need to gain at least some degree of IFRS … Read more