The strange, self-contained world of pro forma financial statements… We recently discussed the CSA’s current consultation paper on reducing the “regulatory burden” on reporting issuers. Among much else, the paper floats the possibility of removing the requirement to prepare pro forma statements as part of a business acquisition report filed under Canadian securities regulations. Well, in…
As we’ve discussed in many previous articles, IFRS 15 Revenue from Contracts with Customers becomes effective on January 1, 2018. By now, companies for whom the new standard will have a material effect should surely have clearly disclosed that fact, and in many cases should have provided some quantified information about the anticipated effect as…
The IASB has issued Prepayment Features with Negative Compensation, an exposure draft of proposed amendments to IFRS 9, Financial Instruments, with comments to be received by May 24, 2017. You’ll recall that under IFRS 9, an entity classifies financial assets for purposes of ongoing measurement on the basis of both its business model for managing…
“FRC Lab report confirms the importance of business model disclosure to investors,” announces a recent news release: Here’s more: “The Financial Reporting Council’s (FRC) Financial Reporting Lab has published a report on Business Model Reporting which provides valuable insight for companies on the importance of business model information to investors, and the type of information they are…
The Canadian Securities Administrators recently published CSA Consultation Paper 51-404 Considerations for Reducing Regulatory Burden for Non-Investment Fund Reporting Issuers, seeking “comments on potential options for reducing regulatory burden for non-investment fund reporting issuers in the public markets.” Nothing in the paper would affect the application of IFRS in Canada, but it certainly might change aspects of…
The IFRS Discussion Group recently considered the relevance to Canadian preparers of the Transition Resource Group (TRG) for Revenue Recognition… The TRG was initially established as a joint initiative between the IASB and the Financial Accounting Standards Board (FASB). The relevance question arises in particular because the IASB announced in early 2016 that it doesn’t plan…
“IASB outlines steps to improve disclosures in financial statements,” announces a recent news release. Here’s how the release sums up those steps: “The International Accounting Standards Board (the Board) has today published a Discussion Paper that suggests principles to make disclosures in financial statements more effective. The Discussion Paper Disclosure Initiative—Principles of Disclosure seeks public feedback on…
Two European examples of problems in presenting and disclosing revenue Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA) (for more background see here); this is from their 19th edition: “The issuer is a biotech company that undertakes research and development…
The IASB has issued an exposure draft of Improvements to IFRS 8 Operating Segments, with comments to be received by July 31, 2017. The proposed amendments follow up on various bits and pieces that came out of the Board’s post-implementation review of the standard a few years ago. Here’s how the exposure draft sums them up:…
A recent National Post article provides a rare example of a technical accounting issue catching the mainstream media spotlight. Written by Sunny Freeman, it’s titled “’Biological assets’: Accounting rules are adding haze to marijuana company financials.” Here are some extracts: “If the accounting regime that governs Canada’s burgeoning marijuana industry seems a little hazy to…
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