Reverse factoring; forward movement

The IFRS Interpretations Committee recently considered the issue of reverse factoring arrangements. In such arrangements, a financial institution agrees to pay amounts an entity owes to the entity’s suppliers, and the entity agrees to pay the financial institution at a later date. The request came from Moody’s Investors Service, which reported that while 50% of…

Goodwill and impairment – did they find a better way?

As we addressed previously, the IASB has published “a Discussion Paper on possible improvements to the information companies report about acquisitions of businesses to help investors assess how successful those acquisitions have been.” We noted before that the IASB “has concluded that there is no alternative that can target goodwill better and at reasonable cost.” Let’s…

Ongoing disclosures about business acquisitions, or: it’s all going even better than we hoped!

At a recent meeting, the IASB’s Capital Markets Advisory Committee discussed a few issues relating to goodwill and impairment. In the accompanying agenda paper, staff indicated that they’re considering recommending some additions to the existing disclosure requirements in IFRS 3, focused on assisting users to better understand “the strategic rationale for and the key objectives…

Review of disclosures – pick a standard, any standard…

At its July 2018 meeting, the Accounting Standards Advisory Forum discussed among many other things, the IASB’s plan to carry out a targeted standards-level review of disclosures. The discussion covered both the Board’s process for developing and drafting disclosure objectives and requirements, and which standards the Board should select for review. On the latter point,…

Principles of disclosure – of primary concern

Let’s return to the IASB’s Principles of Disclosure discussion paper, for which the comment period closed in October…. The discussion paper noted the following problem: The Board has received…feedback that some users of financial statements analyze the information in the statements listed in paragraph 3.3(a) (i.e. the balance sheet, income statement, statement of changes in…