A European example of issues arising in interpreting the definition of an investment entity 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 20th edition: The issuer, a savings bank… held 48.3%…
A European example of a disagreement in applying IFRS 12 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 20th edition: The issuer holds more than 20% of the voting rights in…
The IASB has issued for comment its latest proposed annual improvements to the standards, with comments to be received by April 12, 2017. There are just three items: Borrowing costs IAS 23 Borrowing Costs states: “To the extent that an entity borrows funds generally and uses them for the purpose of obtaining a qualifying asset,…
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,…
The endless oddity of one of the long-standing aspects of financial reporting On my old blog (now sadly wiped from cyberspace), I devoted several entries to the mechanics of equity accounting, not because I really wanted to, but because the topic generates so many head-scratching oddities (like the one I discussed last time). This is how I put…
I’ll return another day to the basic question of why we’re stuck with equity accounting, a practice that doesn’t really make much conceptual sense. But for as long as we’re stuck with it, it generates plenty of head-scratching opportunities. Take for example the situation where an investor’s share of losses in the associate or joint…
by John Hughes 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 15th edition: “Prior to the adoption of IFRS 11, the issuer presented in its income statement the line: ‘share in…
The IASB has issued Sale or Contribution of Asset between an Investor and its Associate or Joint Venture, amendments to IFRS 10 and IAS 28, driven by questions about the appropriate accounting by an investor for a business it contributes to an equity-accounted investee. The guidance in IFRS 10 suggests that when it loses control of…
The IASB has issued Investment Entities: Applying the Consolidation Exception, an exposure draft of proposed amendments to IFRS 10 and IAS 28, with comments to be received by September 15, 2014. The exposure draft reflects issues that have arisen in applying the IASB’s important conclusion, effective since the beginning of 2014, that an investment entity…
This was one of the most popular posts on my old blog, which surprised me a bit, but maybe the exam room holds nostalgic appeal for many of us… I’m no doubt misremembering, but I’d almost swear that half the exercises when I was training to be an accountant related to figuring out eliminations of…
John Hughes IFRS Blog 