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
Update 2023 – please scroll below to download 1-page infographic summing this all up. Totally free. 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…
Brief IFRS Glossary
International Financial Reporting Standards are usually presented in a certain structure. Most of IFRS is clearly subdivided into several chapters that carry their titles, for example: Recognition, Measurement, Derecognition etc. This article defines the main terms as used in IFRS and shows example of their application….
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…
How to Learn IFRS (Part 2)
In the first part of this article, we have learned how to acquire basic knowledge about IFRS and what are pros and cons of face-to face training. Today, we will look to some self-study options and easy accessible sources of news and actual developments in…
How to Learn IFRS (Part 1)
The world has been constantly moving to the single set of global accounting rules. There is a strong ambition to adopt IFRS as a unified set of financial reporting standards all over the planet by 2015. So yes, I understand that accountants and other finance…
