How to Account for Decommissioning Provision under IFRS
When a company acquires certain types of long-term assets, it sometimes has an obligation to remove these assets after the end of their useful lives and restore the site. Typical example of such an asset is an oil rig or a nuclear power plant. When…
What are directly attributable costs?
When you acquire a long-term asset, you can include directly attributable costs to the initial measurement of its cost. Although IFRS define directly attributable expenses quite clearly and provide a few examples, there are many different items we are not sure about. In this article,…
How The Groups Change
Group accounts are a very popular topic and yes, I can understand it as it’s a main topic for many accounting exams. I have written a few articles about it, including: Intro to group accounts and consolidation; Example: How to consolidate; and a few summaries…
Summary of IAS 40 Investment Property
Many accountants falsely believe that there’s only one standard that deals with long-term tangible assets: IAS 16 Property, Plant and Equipment. While it’s true that you need to apply IAS 16 for most of your long-term tangible assets, it’s not the one ruling all. I…
Hedge Accounting Under IFRS 9: Rebalancing – What Is This New Concept?
Hedge accounting belongs to the most difficult accounting areas and I published a few articles on this topic on IFRSbox – for example, here and here. Today, I’m delighted to present another hedging article written by Mr. Kevin Mitchel,Partner – Advisory Services at Rochford, the…
IAS 2 Cost Formulas: Weighted average, FIFO or FOFO?!
During my ACCA studies some years ago I had an amazing tutor. He was very smart, always to the point and on top of that, I simply loved his dry British sense of humor. When we talked about inventories, he told us a story about…
Principal or Agent – Revenue or Liability?
A few weeks ago I published an article about top 3 dilemmas with your auditors and I wrote the story about a company selling mobile phone credits via its machines. I explained that the company served as a medium of sale and was not responsible…
IFRS 16 Leases vs. IAS 17 Leases: How the lease accounting changed
In January 2016, IASB issued another important and long-discussed standard: IFRS 16 Leases that will replace IAS 17. Ever since then I receive lots of e-mails asking me to sum up what’s new. OK, so here you go. In this article, you’ll learn about the…
Top 3 Biggest Dilemmas With Your Auditors
Companies are very watchful when it comes to an audit of their financial statements. How to deal with our auditors? Do they know everything? Should we listen to them? Can they force us to do something we don’t want? I worked as an audit assistant,…
IFRS 15 Revenue from Contracts with Customers – Summary
In the past few years, the revenue recognition rules changed dramatically with introduction of the new standard IFRS 15. All affected companies face a lot of challenges and work related to the proper implementation of the new standard. I have written 2 articles about the…
