Projected Unit Credit Method (IAS 19) with Example
Recently I got across the interesting question. One lady working for a company adopting IFRS for the first time asked me if they can still mark their financial statements as compliant with IFRS, if they do not apply projected unit credit method, but do apply…
How to account for dividends paid to employees?
The accounting for the dividends paid to employees depends on whether the employee is a shareholder or not; and whether the dividend was paid out to employees in their capacity of shareholders. Learn more here.
IFRS 2019 Update: Major changes you should be aware of
Here we go again – another year has started and a number of changes or amendments of IFRS came into effect. I am pretty sure that you are aware of the biggest ones like new IFRS 16, but let me sum up all the new…
How to Account for Employee Loans (interest-free or below-market interest)
After I wrote an article about capitalizing borrowing cost, I got a lot of e-mails asking me actually HOW to account for loans that do not bear the interest rate reflecting market conditions. In other words, how to account for loans at below-market interest rate,…
Top 5 IFRS 2014 and 2013 Changes
The year 2013 started off with some really significant IFRS amendments that you need to take into account when preparing your IFRS financial statements as at 31 December 2013. Although these changes should be applied in the year 2013 for the first time, you also…
IAS 19 Employee Benefits
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 to name a few…
How to Extrapolate Along Yield Curve
Recently, during my lecture about financial instruments, I got a very interesting question from one clever participant. To give you a little background: He was a finance guy working in a huge company and for sure, he came across various accounting issues and problems. One…
