Some extremely minor IFRS items (redeemed by Twitter!)

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,…

Equity accounting – time to say goodbye?

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…

Less than zero – oddities of the equity method

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…