What to disclose under IFRS 7 Financial Instruments: Disclosures
About 3 years ago, I was reviewing the financial statements of a medium-sized company providing consumer loans. They needed the IFRS financial statements due to lots of loans taken from foreign banks. Usually, these banks require bigger debtors to provide the financial statements annually. So…
Accounting for Deemed Disposal of Associate (IAS 28)
Sometimes, the things can happen behind your back – without you even noticing. And, these things can affect you somehow. Let me tell you a short story. I participated in an audit of a big insurance company and our senior asked me to look at…
Tax Reconciliation under IAS 12 + Example
When I was an audit freshman, my least favorite task was to prepare the income tax reconciliation. I frankly hated it. Why? The main reason was that I did not understand the purpose of it. For me, it seemed like a bunch of numbers and…
How to Present Earnings per Share (IAS 33)
If you invest your savings to the purchase of some shares on the stock exchange, then you probably perform some analysis in order to select the right stock. Well, this is at least what you should do. Still, your own hard-earned money needs to work…
How to Account for Customer Incentives under IFRS
Buy one, get one free… Discounts on future purchases… Coupons for free products… Loyalty points… Sounds familiar? Well, if you work in a company that sells some products or services to individuals or general public (not the other businesses), then you probably use some “carrots…
Example: How to Adopt IFRS 16 Leases
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…
How to Implement IFRS 16 Leases
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…
Top 3 Questions about IAS 41 Agriculture
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…
CPDbox Recommends 2: What to Read Online (Blogs)
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…
How to Account for Debt Factoring or Selling of Receivables
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…
