Borrowed headache!

The tangled intersection of IAS 23 and IFRS 15… Here’s the background to an issue recently discussed by CPA Canada’s IFRS Discussion Group: Entity A constructs and sells an apartment unit to a customer. The customer pays the full consideration up front. Entity A concludes that revenue from apartment sales is recognized at a point…

Disclosures about acquisitions – empowering investors?

The Securities and Exchange Commission recently voted to propose rule amendments to improve the information that investors receive regarding the acquisition and disposition of businesses.   As the SEC Chair put it in a press release: “The proposed rules are, first and foremost, intended to ensure that investors receive the financial information necessary to understand…

Interest rate benchmark reform, or: a change is gonna come!

The IASB has published for comment Interest Rate Benchmark Reform, an exposure draft of proposed amendments to IFRS 9 and IAS 39, with comments requested by June 17, 2019. The main reference point for this effort was Reforming Major Interest Rate Benchmarks, a report carried out by the Financial Stability Board in 2014. As the…

No room in the disposal group, or: back to the balance sheet!

An example of issues arising in applying IFRS 5 to assets held for sale Here’s something I recently read about: Construction, services and property group Kier has been forced to restate its debt by more than £40 million after uncovering an accounting error, reports have revealed. In a recent trading update, the group said it…

400 posts!

This is the 400th posting on this blog… ..so I thought I might take a brief pause for review. From my perspective, the number of posts is actually significantly higher, because before this one, I maintained a similar blog on the website of a Canadian accounting firm. When that firm merged with another, those posts…

Annual improvements to IFRS – getting better all the time!

The IASB has issued an exposure draft of Annual Improvements to IFRS® Standards 2018–2020, with comments requested by August 20, 2019. There are only four items (see, IFRS is already virtually perfect as it is!) Here they are: Financial instruments IFRS 9 regards an exchange of debt instruments with substantially different terms between an existing…