IAS 8 Accounting Policies, Changes in Accounting Estimates, Errors
Updated in March 2023 I bet every single company needed to change something in its accounting records and financial statements. Often, the change is very small, so you just don’t worry about it and make correction on the go. But sometimes, the change can impact…
5-Step Model for Revenue Recognition under IFRS 15 + Journal Entries
The standard IFRS 15 has been with us for a while now, yet I still receive the same question: What precisely is 5-step model and should we really apply it to even the simple shop sales to the customer? The short answer is YES, you…
How to determine the fair value of a machine?
Market prices of most non-financial assets are usually not available, because these assets might be outdated or highly customized or simply not traded on the market. How do you set the fair value of these assets in this case? Learn here!
Can you capitalize rental expenses of land?
Can you capitalize rental expenses of land under IFRS? And what about the rental of the temporary offices? Find out here!
How to allocate cost of conversion to inventories at abnormal levels of production?
How to allocate fixed overheads to the cost of inventories? What if your production is abnormally high or abnormally low? Find out here with examples included!
Should we create a provision for major overhauling?
How to deal with anticipated major repairs, maintenance, overhauling, regular replacement of small parts and similar items under IFRS? Find out here!
Distinct or not distinct under IFRS 15?
How to determine whether the performance obligations in the contract are distinct or not distinct under IFRS 15? Find out here, with example included!
Example: Consolidation with Foreign Currencies
Last update: 10/2022 (video added to the end of the article) 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…
Accounting for the sales of software licenses with subsequent updates
How to apply 5-step model of IFRS 15 to the licenses of intellectual property? Are there any special considerations? Learn here!
How to account for barter transactions?
How to account for exchanges of inventories or long-term assets under IFRS? Or other barter transactions? Learn here!
