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These days people use about 180 currencies world wide! The truth is that  we, people, don’t want to stay isolated.  We love to sell, buy, import, export, trade together and do many other things,  all in foreign currencies! When you look at the business world, you’ll see that business go global in two ways: they … Read more

The first thing you need to do before you even start to play with hedge accounting is to determine the TYPE of hedge relationship that you’re dealing with. Why? Because: the type of hedge determines your accounting entries. Make no mistake here. If you incorrectly identify the type of the hedge, then your hedge accounting … Read more

When to recognize revenue? This simple question is one of the most controversial issues in today’s accounting. Why? Well, it’s simple and easy when you sell goods, but how about long-term contracts or some sort of services? You need to have some rules on WHEN to recognize the revenue from all these things, because all … Read more

Buying a foreign company or just some shares, building up an entirely new business or starting mutual venture with somebody else are some basic ways of spreading the business activities. Consolidation goes “hand in hand” with any foreign business. But what is it? Many people refer to consolidation when they speak about their share in … Read more

In my previous article I introduced the world of group accounts and consolidation to you. You learned that there about 6 IFRS dealing with this topic. Here, I’d like to summarize the first “consolidation” standard dealing with the consolidated financial statements: IFRS 10. What is the objective of IFRS 10? The objective of IFRS 10 … Read more

A few weeks ago I visited our dentist together with my little 4-year old girl just to check up everything’s OK with her little teeth. While we were sitting in the waiting room, my little one playing with the small teeth replicas (OMG!), I looked around myself noting that there were beautiful wall paintings around, … Read more

When should you apply IFRS 3 and when IFRS 10? What is the difference between IFRS 3 Business Combinations and IFRS 10 Consolidated Financial Statements? Today, I’d like to continue our “consolidation” series and after the introductory lesson and the summary of IFRS 10, let’s dive in the IFRS 3 Business Combinations. What is the … Read more

Let’s be more practical today and learn some advanced accounting techniques. After summaries of standards related to consolidation and group accounts, I’d like to show you how to prepare consolidated financial statements step by step. I’ll do it on a case study, with explaining what I do and why. If you don’t like reading, you … Read more

Is it an item of property, plant and equipment or a part of its cost? Or is it a piece of inventories instead? Or just an expense that goes straight in profit or loss? Hmmm, what about an intangible asset? In 90% of all cases, the answer to the above questions is clear – it’s … Read more

Let’s focus on associates, joint ventures, significant influence and equity method today. You have already learned various aspects of having control over some investment: how to identify it, how to account for it and we also learned basic consolidation procedures step by step. It was all covered by IFRS 3 Business Combinations and IFRS 10 … Read more