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When a company acquires certain types of long-term assets, it sometimes has an obligation to remove these assets after the end of their useful lives and restore the site. Typical example of such an asset is an oil rig or a nuclear power plant. When an oil rig, a power plant or similar construction fulfills … Read more
When a company (or another entity) plans to sell an asset and / or stop some part of its business, then it might affect its future cash flows, profitability and overall financial situation. Therefore, the users of financial statements, mainly investors, should be informed about these events. That’s why the standard IFRS 5 Non-Current Assets … Read more
Discounts are probably the most popular selling tool in business. Without a doubt, many companies discount the price for their products or services in various forms, for example: Buy 1, get 1 free (and modifications), Get 10% off for purchases over CU 100 (and modifications), Gift vouchers, Settlement discounts (bonus for early payment or for … Read more
We all know that IASB and US standard’s setting body FASB work together in order to prepare a single set of global accounting standards. Recently issued standard on revenue recognition, IFRS 15 and its American counterpart FAS 606 are a good example of these mutual efforts. On the other hand, these two bodies are not … Read more
When a company acquires control over another company, then often a goodwill arises, too. You should present it as an intangible asset, but when you think about it carefully, a goodwill is not a typical asset, because unlike other assets, you cannot sell it to somebody, you cannot use it in your production process or … Read more
In January 2016, the new standard about lease accounting IFRS 16 was issued and it introduced a few major changes. The most significant are: New definition of the lease can cause that some contracts previously treated as “service contracts” can now be treated as “lease contracts”, Accounting for leases in the lessee’s financial statements changed … Read more
The new IFRS 9 Financial Instruments will replace the older standard IAS 39 in January 2018 and it practically means that if you are affected, you need to start getting ready NOW. Why? Because your comparative period starts in January 2017 and you will need to restate the numbers for 2017 in line with the … Read more
My all dear readers, without YOU there would be no IFRSbox! Let me thank you for your continuous support throughout the year 2016, especially for: Asking me so many good questions in the comments below my articles, Sharing my articles with your friends via social networks, Giving me your feedback about how my work helped … Read more
The guys in the IASB (International Accounting Standards Board) are working very hard – it’s evident from lots of new standards, interpretations and amendments produced every year. In today’s article, I’d like to sum up the main changes in IFRS adopted in the past years so that you can keep them in mind and prepare. … Read more
IFRS 9 Financial Instruments is one of the most challenging standards because it’s sooo complex and sometimes complicated. It belongs to the “Big 3” – the three difficult standards that need to be implemented in the near future: IFRS 9 Financial Instruments: adoption date = 1 January 2018 IFRS 15 Revenues from Contracts with Customers … Read more