Questions & Answers
Failed to comply with IFRS
Question We adopted IFRS two years ago. We applied all accounting policies as required by IFRS, except for defined benefit plan accounting under IAS 19. We did not use projected unit credit method in accounting for defined benefit plans. We also did not use the…
Change in the reporting period and comparatives
Question Our company decided to change its financial year. The current reporting year is from 1st January to 31st December and the new one will be from 1st April to 31st March. How shall we present this change? Are there any disclosures we need to…
Preference shares, tax and EPS
Question Our company has issued non-cumulative preference shares paying 4% interest each year. We report the dividends on preference shares in the profit or loss as a finance cost. What adjustment shall we make when calculating earnings per share? Is it after tax or before…
Changing depreciation during the reporting period
Question We are a manufacturing company and we applied straight-line depreciation method for our assets. During the year, our company revised major production plans, compared them with useful lives of our assets and we found out that the change was necessary. Can we make the…
Foreign currency rates to use when they are not available
Question We are a trading company and our functional currency is EUR. Occasionally we trade with countries whose currencies do not have a daily quote of exchange rate due to low exchangeability. What closing exchange rates shall we apply? Answer The standard IAS 21…
Accounting for adjustments at the first-time adoption of IFRS
Question We are working on the first-time adoption of IFRS in our company. How shall we account for the adoption adjustments? Answer In line with IFRS 1 First-time Adoption of International Financial Reporting Standards (par.11), all adjustments are debited or credited to opening retained…
Missing information about long-term property at IFRS adoption – what to do?
Question We are a state-owned company and we are in the process of adopting IFRS. IFRS 1 First-time Adoption of International Financial Reporting Standards requires applying IAS 16 to our fixed asset as if it has always been applied. This is impossible, because we own…
