IAS 8 Accounting Policies, Changes in Accounting Estimates, Errors
I bet every single company needed to change something in its accounting records and financial statements. Often, the change is very small, so you just don’t worry about it and make correction on the go. But sometimes, the change can impact companies quite hard. For…
IFRS 11 Joint Arrangements
Joint venture or joint operation? What is joint control? How to account for joint arrangements? In our consolidation series, we have already covered investments in subsidiaries (IFRS 3 and IFRS 10), associates (IAS 28) and other financial instruments. Today, we’ll take a look at the…
IAS 28 Investments in Associates and Joint Ventures
Let’s focus on associates, joint ventures, significant influence and equity method today. You have already learned various aspects of having control over some investment: how to identify it, how to account for it and we also learned basic consolidation procedures step by step. It was…
IFRS 3 Business Combinations
When should you apply IFRS 3 and when IFRS 10? What is the difference between IFRS 3 Business Combinations and IFRS 10 Consolidated Financial Statements? Today, I’d like to continue our “consolidation” series and after the introductory lesson and the summary of IFRS 10, let’s…
IFRS 10 Consolidated Financial Statements
In my previous article I introduced the world of group accounts and consolidation to you. You learned that there about 6 IFRS dealing with this topic. Here, I’d like to summarize the first “consolidation” standard dealing with the consolidated financial statements: IFRS 10. What is…
IAS 21 The Effects of Changes in Foreign Exchange Rates
These days people use about 180 currencies world wide! The truth is that we, people, don’t want to stay isolated. We love to sell, buy, import, export, trade together and do many other things, all in foreign currencies! When you look at the business world,…
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…
IFRS 2 Share-Based Payment
Does your company remunerate its top management by granting them own shares? Or, do employees receive bonuses based on the increase of the company’s share price? Transactions whereby companies pay for the goods or services received by issuing shares or similar instruments are very…
IAS 36 Impairment of Assets
Did you know that the world-wide economic crisis followed by the recession caused a sharp downfall of assets’ prices? In some countries, the prices of property fell by 30-50%! Such a steep and fast decrease had an impact on the IFRS financial reporting, too. Companies…
IAS 12 Income Taxes
Benjamin Franklin once wrote: “In this world nothing can be said to be certain, except death and taxes“. Income tax is something that can hardly be avoided by a profit-making company. You might find filling-in the tax return a demanding task because everything must be…
