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During my ACCA studies some years ago I had an amazing tutor. He was very smart, always to the point and on top of that, I simply loved his dry British sense of humor. When we talked about inventories, he told us a story about an audit assistant performing audit in a big distribution company. … Read more
Hedge accounting belongs to the most difficult accounting areas and I published a few articles on this topic on IFRSbox – for example, here and here. Today, I’m delighted to present another hedging article written by Mr. Kevin Mitchel,Partner – Advisory Services at Rochford, the leading treasury advisory house in Australia advising on in excess … Read more
Many accountants falsely believe that there’s only one standard that deals with long-term tangible assets: IAS 16 Property, Plant and Equipment. While it’s true that you need to apply IAS 16 for most of your long-term tangible assets, it’s not the one ruling all. I tried to falsify this myth some time ago here. Except … Read more
Group accounts are a very popular topic and yes, I can understand it as it’s a main topic for many accounting exams. I have written a few articles about it, including: Intro to group accounts and consolidation; Example: How to consolidate; and a few summaries of standards dealing with these issues, such as IAS 28, IFRS 3, … Read more
When you acquire a long-term asset, you can include directly attributable costs to the initial measurement of its cost. Although IFRS define directly attributable expenses quite clearly and provide a few examples, there are many different items we are not sure about. In this article, I decided to look at directly attributable expenses with a … Read more
I am a passionate reader. I read A LOT. I read EVERY SINGLE DAY, usually 1 or 2 hours (I almost never watch TV though). It makes about 100+ books plus tons of articles each year. I started to read when I was 4. That time, I read only fairy tales and stories in my … Read more
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