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…
2 Steps to Distinguish Other Comprehensive Income from Profit or Loss and Changes in Equity
Some time ago, standard IAS 1 Presentation of Financial Statements significantly changed and introduced the statement of other comprehensive income. And then it began: lots of confusion, frustration and doubts! Many of us simply did not get the point and started to flounder in the…
How to Prepare Statement of Cash Flows in 7 Steps
How many times did you sit with the head in your hands worrying about the statement of cash flows? Lots of work, preparation, calculations, adjustments…. and damn it, figures just do not add up! It’s very frustrating and creates headaches. I’ve been there. You might…
How to Adjust Your Local Accounts to IFRS (Part 2)
In the first part of this small series, we have explained preparatory steps for making transformation of local accounts to IFRS. Here, we continue with summing all this up and preparing transformation bridge as the basis for IFRS accounts. Step 3: Prepare a bridge in excel…
How to Adjust your Local Accounts to IFRS (Part 1)
Today’s accounting world works on a single set of accounting and financial reporting standards. As a basis, IFRSs happen to play a crucial role. Nowadays, we are witnessing a huge progress of convergence to IFRS—not only by US GAAP, but also other countries are adopting…
IAS 1 Presentation of Financial Statements: Summary
IAS 1 Presentation of Financial Statements represents a basis of the whole IFRS reporting, as it sets overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content. Financial Statements Purpose of the financial statements is to provide information about…
The Conceptual Framework for Financial Reporting
Update 2019: As the new Framework was issued in 2018, there’s a summary of updated Framework with the new video here on this link. The Conceptual Framework for the Financial Reporting (I will call it just “IFRS Framework”) serves as a pillar on which the…
