How to Consolidate Special Purpose Entity
I lost my first serious job in Arthur Andersen in 2001. I was devastated, because I really loved that job. Yes, it was full of hard work and long overtimes, but it was the best accounting and auditing school ever. How did I lose my…
015: How to prepare financial statements when going concern does not apply?
IFRS do not specify any rules for presenting the financial statements when the going concern basis does not apply. So, what to do? How to present the financial statements? What should we take care of? Find out here!
014: How to present a loan with breached covenants?
So, you have a long-term loan, you breached the covenants and it became repayable on demand. Is it current or non-current? Learn here!
007: How to present restricted cash under IFRS?
Advances from your clients received in cash… but you can’t use that cash. That’s just one example of restricted cash. How should you present it under IFRS?
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 Make Consolidated Statement of Cash Flows with Foreign Currencies
Did you know that many groups prepare their consolidated cash flow statement completely incorrectly? And, if you are well-experienced accountant, you can actually spot the faulty numbers instantly when you look to the statement of cash flows. Sadly, this wrong method is often taught in…
Example: Consolidation with Foreign Currencies
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 different when they operate in different currencies? Yes and no. If…
Current or Non-Current?
Most balance sheets present individual items in distinction to current and non-current (except for banks and similar institutions). This seems so basic and obvious that most of us do not really think about classifying individual assets and liabilities as current and non-current. We do it…
IFRS for Banks and Financial Institutions
If you work for a bank or any other financial institution, then you are very well aware of the fact that IFRS is a little bit different there. OK, not quite like that: IFRS is still the same, just the way how you use it…
IAS 7 Statement of Cash Flows
Ignoring an accrual principle??? What?! No way! That’s the basic accounting rule we should all follow! Yes, of course, you’re right. BUT: There IS an exception. The statement of cash flows. Preparing the statement of cash flows might become the biggest accountant’s nightmare. Why is…
