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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
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
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
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
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
In the first part of this article, we have learned how to acquire basic knowledge about IFRS and what are pros and cons of face-to face training. Today, we will look to some self-study options and easy accessible sources of news and actual developments in this area. So let’s take a look on how to … Read more
This is another useful tip I would like to give you. With these formulas, you can really speed up your IFRS accounting process, especially when dealing with sophisticated calculations. So let’s start. Top Financial Formula #1: IRR What is IRR? IRR formula calculates Internal Rate of Return for series of cash flows. The cash flows must be expressed … Read more
IFRS and US GAAP come closer to each other and the dream was to have a single set of the reporting standards until 2015. Now we know that that dream did not come true and there is still a long way to go. Until then, there are still many companies who need to cope with IFRS … Read more
People are very creative and inventive. So they created and invented numerous kinds of financial instruments. Just admit it—are you really versed well in derivatives, various share options, warrants, certificates, convertible bonds and many others? This area happens to be so complicated and difficult to understand, also from IFRS accounting and reporting point of view. Adding … Read more
Update 2019: As the new Framework was issued in 2018, there’s a summary of updated Framework with the new video here on this link. The Conceptual Framework for the Financial Reporting (I will call it just “IFRS Framework”) serves as a pillar on which the whole IFRS stand. It describes the basic principles for presentation … Read more