Canada should be the home of the new global sustainability standards board, announces a recent opinion piece in Canada’s Globe and Mail newspaper. Here are some extracts: (The) international interest (in hosting the new board) reinforces the prestige and value associated with the new global body. It also provides an opportunity to demonstrate how Canada’s…
We recently looked at some reasons why the accounting for intangible assets might be revisited in the foreseeable future, These included a reference by the new Chair Andreas Barckow in an interview to the “the rise of self-generated intellectual property and its non-addressal in the accounts” as one of the key challenges to remaining relevant…
Based on my highly incomplete review of the 118 comment letters received in response to the IASB’s recent agenda consultation, going concern is likely to emerge as one of the highest priority projects. I wouldn’t have seen that coming, but there you go. Here’s how the Canadian Securities Administrators summarized the issue: When preparing financial…
I haven’t read them all of course, but of the 110 comment letters received in response to the IASB’s agenda consultation, my favourite is from the Accounting Methodology Centre, a Russian organization previously unknown to me. This would be the case if only for its final flourish: The famous Russian writer, critic and pamphleteer of…
A recent New York Times article examines How Accounting Giants Craft Favorable Tax Rules from Inside Government Here are some extracts: The largest U.S. accounting firms have perfected a remarkably effective behind-the-scenes system to promote their interests in Washington. Their tax lawyers take senior jobs at the Treasury Department, where they write policies that are…
A European example of issues arising in disaggregating revenue for disclosure purposes Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA); this is from their 24th edition: The issuer is a producer of primary minerals and secondary mineral sand products (‘secondary…
I was intrigued by a recent article on Why Sustainable Investment Means Investing in Advocacy, by Alan Schwartz and Reuben Finighan The article points out that sustainable investment movements “however promising, assume there’s no need for a trade-off between returns and social and environmental impact. They are grounded in the idea that investors and corporations…
A European example of identifying control under IFRS 10 Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA); this is from their 24th edition: The issuer is an industrial company that holds 39% of the capital of Company X. The issuer…
SEC Charges The Kraft Heinz Company and Two Former Executives for Engaging in Years-Long Accounting Scheme, announces a recent news release Here are some extracts: The Securities and Exchange Commission today charged The Kraft Heinz Company with engaging in a long-running expense management scheme that resulted in the restatement of several years of financial reporting.…
CPA Canada has issued Complexity and the professional accountant: Practical guidance for ethical decision-making, the first of four thought leadership papers. The paper builds on a collaborative exploratory paper and global roundtable event held jointly with the Institute of Chartered Accountants of Scotland and the International Federation of Accountants. The broad guiding notion is as…
A European example of issues arising in classifying liabilities for purposes of liquidity disclosures Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA); this is from their 24th edition: The issuer issued loan notes (i.e. financial liabilities) that all have a…
IASB proposes reduced disclosure requirements for subsidiaries, announces a recent news release Here’s the summary: The proposals respond to feedback from stakeholders and are designed to ease financial reporting for eligible subsidiaries while meeting the needs of the users of their financial statements. The proposed Standard would be available to subsidiaries without public accountability—companies that…
When companies massage the books, the environment takes a hit, indicates a recent article on the Canadian Accountant website Here are some extracts: Earnings management may be a form of financial fraud, but there are plenty of defenders who say accounting standards allow for managerial discretion in reporting earnings. Besides, when firms manipulate their books, aren’t they hurting…
As a summer treat, here now is another selection of tweets that made mention of IFRS in one way or another, presented here in their original form, all typos and oddities and possible obscenities intact (the last edition was here). Over the years, I’ve cited more instances than I would ever have thought possible of…
Let’s return to the IASB’s discussion paper Business Combinations under Common Control, on which comments are requested by September 1, 2021. As we covered here, the main proposal is that fair-value information should be provided when a business combination under common control affects shareholders outside the group. In all other cases, the Board is suggesting…
