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…
Hedge Accounting: IAS 39 vs. IFRS 9
Business world as of today presents a huge amount of various risks to almost every company or entrepreneur. I’m sure that also your company faces at least some of these risks: foreign currency risk, price risk, inflation risk, credit risk – just name it. Many…
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…
IFRS 13 Fair Value Measurement
Many IFRS standards require you to measure the fair value of some items. Just name the examples: financial instruments, biological assets, assets held for sale and many other. In the past, there was limited guidance on how to set fair value; the guidance was spread…
How to Account for Compound Financial Instruments (IAS 32)
Compound financial instruments became very common way of raising cash by many companies, but their shareholders don’t like them that much. Why? Because many compound financial instruments contain the option to convert into shares. Just imagine you purchased convertible bond that gives you the right…
IAS 19 Employee Benefits
Last update: July 2023 Standard IAS 19 Employee Benefits prescribes rules for recognition and presentation of various types of benefits that employers provide to their employees. Have you ever read about employee benefits that the best employer in the world—Google provides to its employees? Just…
IAS 18 Revenue
The world today is packed with different kinds of products, services, transactions and many other activities that people and business do. Logically, it is sometimes very tough issue for accountants to determine WHEN and even WHETHER to recognize revenue in the financial statements. That’s exactly…
IAS 17 Leases
IAS 17 Leases deals with the accounting and financial reporting of the very common business transaction—lease. Leases are the great example of “off-balance sheet” financing if not recorded properly in the financial statements. In the past, many companies used to hide their finance lease liabilities and…
IFRS 9 Financial Instruments 2012
Update 2017: This is an article from 2012 and I wrote the totally updated article in 2017 here. However, there’s a valuable discussion in the comments to this article, and that’s why I did not delete it, but left it here. Please, if you have…
