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A few weeks ago, we published the article about How to Implement IFRS 9 to assist you with the adoption of the major forthcoming IFRS update. Many accountants and CFOs are worried about IFRS 9, there are numerous discussions going on about it, but not everybody has the clear vision about WHAT is a financial … Read more
In today’s world, most groups spread their activities abroad and logically different members of the group operate in different currencies. Is the consolidation process of combining the financial statements of two (or more) companies different when they operate in different currencies? Yes and no. If you want to combine the financial statements prepared in different … Read more
The new lease standard IFRS 16 can initially cause some troubles to the affected companies, because it introduces huge changes in the lessee’s accounting for leases. It was issued in January 2016 and we have to apply it for the periods starting 1 January 2019 or later, with earlier application permitted. I wrote an article … Read more
If your company enters into some derivatives or other contracts to protect against any (potentially adverse) changes in cash flows or fair values, then it’s probably beneficial to apply hedge accounting. I wrote a few articles about hedge accounting, therefore if you need to refresh your memory, here they are: Hedge accounting: IAS 39 vs. … Read more
Did you know that many groups prepare their consolidated cash flow statement completely incorrectly? And, if you are well-experienced accountant, you can actually spot the faulty numbers instantly when you look to the statement of cash flows. Sadly, this wrong method is often taught in many accounting courses. What method is it? Similarly as with … Read more
When I was auditing the financial statements of one of our clients, I spotted a few strange things: There was a huge balance of cash on client’s bank account at the year-end. And I mean HUGE. To illustrate: normally, the client had about CU 100 000 on the bank account with some variations, but … Read more
The readers and followers of this website know that I am a passionate reader and unless I work, cook, clean the house, spend time with my kids or my husband – I read. Yes, I confess voluntarily that I have my nose stuck in the books more than I probably should. Last year, I even … Read more
I rarely publish articles about specific sectors, but this time, I decided to make an exception. Why? The reason is that although most of you do NOT deal with agriculture, it is still one of the most important industries in the world. It is so important and so different from other industries that it has … Read more
The new lease standard IFRS 16 is exactly one of these earthshaking things that can make your head spin around. Well, especially if your company uses the operating lease as an effective tool of getting your assets quickly with relatively low risk. I wrote a few articles in the past for you: Summary of IFRS … Read more
In my last article I tried to outline the strategy and your choices when implementing the new lease standard IFRS 16 Leases. I am grateful for many responses and comments I got from you. Almost all e-mails I received from you asked me to publish solved numerical example to see how to implement IFRS 16 … Read more