As we discussed here, the IASB has issued for comment an exposure draft of a proposed practice statement Application of Materiality to Financial Statements, with comments to be received by February 26, 2016. Although the document’s primary purpose is to reduce unnecessary disclosures, it also sets out various instances where focusing on materiality might lead…
As we discussed here, the IASB has issued for comment an exposure draft of a proposed practice statement Application of Materiality to Financial Statements, with comments to be received by February 26, 2016. Here’s one aspect I didn’t touch on last time: “Sometimes a deliberate decision is made by management not to apply a requirement…
The IASB has issued for comment an exposure draft of a proposed practice statement Application of Materiality to Financial Statements, with comments to be received by February 26, 2016. Here’s how the accompanying news release summed this up: “The draft guidance, in the form of a draft Practice Statement, has been developed in response to…
The IASB has issued Transfers of Investment Property, an exposure draft of proposed amendments to IAS 40, and its exposure draft of proposed Annual Improvements to IFRSs 2014-2016 Cycle, open for comment until March 18, 2016 and February 17, 2016 respectively. IAS 40.57 currently lists some circumstances in which an entity makes transfers to or from investment property,…
When Canada was first learning about IFRS, the IAS 16 revaluation model probably received disproportionate attention, largely just because it was easy to talk about (to a point anyway). As it turned out, very few Canadian companies actually chose this option – almost all of them stuck with the familiar cost model. A couple did take the…
Some of the issues arising in deferring gains, rather than recognizing them immediately Here’s an extract from some financial statements of a few years ago: Here’s the note that discusses the deferred gain: I should emphasize at the outset that I’m just using this interesting disclosure as a springboard to muse on the general issue, rather…
An example of the limitations of valuation techniques The Canadian IFRS Discussion Group recently considered the following fact pattern, versions of which come up fairly often in practice: “On December 23, 2014, Entity A recognizes a financial liability at $1,000, which is equivalent to the consideration received; Entity A used a valuation technique to measure the…
IFRIC has issued a draft interpretation, Foreign Currency Transactions and Advance Consideration, with comments to be received by January 19, 2016 Here’s the background: “Paragraphs 21–22 of IAS 21 The Effects of Changes in Foreign Exchange Rates require that a foreign currency transaction must be recorded, on initial recognition in the entity’s functional currency, by…
IFRIC has issued a draft interpretation, Uncertainty over Income Tax Treatments, with comments to be received by January 19, 2016 An uncertain tax treatment for purposes of the draft interpretation is one where uncertainty exists “over whether the taxation authority will accept a specific tax treatment under the tax law,” for example where the acceptability…
We’ve previously looked here at the issue of allocating corporate costs to cash generating units for purposes of impairment testing. On that previous occasion, we looked at a European example of an entity that didn’t allocate the costs of corporate officers to CGUs for purposes of determining cash flow estimates. In that case, the local…
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