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!
How to account for settlement discounts under IFRS 15?
Should you recognize settlement discount as a cost at the time when the payment is received? Or, should you adjust revenue? How? Learn here!
How to determine the discount rate for lessees under IFRS 16?
Can you use the same incremental borrowing rate for all your leases under IFRS 16? Why can’t you use your own implicit rate in the lease if you are a lessee? Learn here!
We rent apartments and supply utilities with rent. Are we agent or principal?
If you are using third-party supplies within your product or service, are you an agent or a principal? How should you recognize revenue in this case? Learn here!
Deferred tax when different tax rates apply
What if the tax rate on capital gains is different from the tax rate on profit? How to calculate deferred tax on assets that will be recovered via both use and sale? Learn here!
