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Topics hide IAS 33 Earnings per Share IAS 33 Objective Scope Definitions IAS 33 Earnings per Share IAS 33 Objective Scope Definitions Objective 1 The objective of this Standard is to prescribe principles for the determination and presentation of earnings per share, so as to improve performance comparisons between different entities in the same reporting … Read more
Topics hide Cloud based software Cloud accounting – a different business model What are the types of cloud? Approaches to cloud accounting Does the arrangement include a software license? Costs of implementation and data migration Amortisation of capitalised costs – the useful life What to think of….. Cloud based software Historically, companies acquiring IT and … Read more
Topics hide Accounting for mergers The acquisition method in accounting for mergers Reporting business combinations and avoiding surprises Effect of deal terms on the accounting for business combinations Accounting for mergers Mergers and acquisitions (business combinations) can have a fundamental impact on the acquirer’s operations, resources and strategies. For most entities such transactions are infrequent, … Read more
Topics hide Goodwill or bargain on acquisition – in short Business combinations Summary of purchase consideration and cash flows Analysis of cash flows Assets acquired and liabilities assumed Fair value measurement Intangible assets Goodwill or bargain on acquisition – in short Goodwill is initially measured at cost, being the excess of the aggregate of the … Read more
An asset is identifiable if it either: is separable, ie capable of being separated or divided from the entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identifiable asset or liability, regardless of whether the entity intends to do so; or arises from contractual or other legal rights, … Read more
Use back button from the brower A bargain purchase involves assets acquired for less than fair market value. In a bargain purchase business combination, a corporate entity is acquired by another for an amount that is less than the fair market value of its net assets. Current accounting rules for business combinations require the acquirer to … Read more
An asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognised. IFRS terms or definitions come from the Official Journal of the European Union (© European Union, https://eur-lex.europa.eu). Individual jurisdictions around the world may require or permit the … Read more
Topics hide Definition of cash and cash equivalents Demand deposits Short term maturity Investments in equity instruments Changes in liquidity and risk Cryptocurrencies Short-term credit lending and cash and cash equivalent classification Cash pool systems Restricted cash and cash equivalents Foreign currency differences Example 1 of disclosure cash and cash equivalents Example 2 of disclosure … Read more
Use back button from the brower Topics hide Constructive obligations The definition – Recognition of provisions Voluntary retirement scheme Earnings management Asset retirement obligation Joint ventures – transition from proportionate consolidation to the equity method Constructive obligations Usually an obligation arises as a consequence of a binding contract or from a statutory requirement. An obligation … Read more
Topics hide Operating cash flows Indirect method cash flow statement Direct method cash flow statement Common cash flow classification errors in practice Classification of interest and dividends Disclosure of changes in liabilities arising from financing activities Operating cash flows Cash flows must be analysed between operating, investing and financing activities. For operating cash flows, the … Read more