IFRS 16 Leases – Summary
In January 2016, the new standard about lease accounting IFRS 16 was issued and it introduced a few major changes. The most significant are: New definition of the lease can cause that some contracts previously treated as “service contracts” can now be treated as “lease…
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…
How New Impairment Rules in IFRS 9 Affect You
In July 2014, the standard IFRS 9 was finally completed and the latest amendments brought us new impairment rules (besides the other things). In my humble opinion, new impairment rules will cause a lot of headaches for mainly financial institutions. Why? Well, they will have…
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…
How to Calculate Interest Rate Implicit in the Lease
When you deal with leases in accordance with standard IAS 17 Leases, FAS 13 or any other applicable standard, you know for sure that the lease should be measured, whether initially or subsequently, using interest rate implicit in the lease in the first instance. In…
US GAAP vs IFRS
IFRS and US GAAP come closer to each other and the dream was to have a single set of the reporting standards until 2015. Now we know that that dream did not come true and there is still a long way to go. Until then, there…
Top Excel Formulas for IFRS
This is another useful tip I would like to give you. With these formulas, you can really speed up your IFRS accounting process, especially when dealing with sophisticated calculations. So let’s start. Top Financial Formula #1: IRR What is IRR? IRR formula calculates Internal Rate of Return for…
