And now for something completely different… Here’s a portion of filmmaker Werner Herzog’s 1999 “Minnesota Declaration” on truth and fact in documentary cinema: 1. By dint of declaration the so-called Cinema Verité is devoid of verité. It reaches a merely superficial truth, the truth of accountants. 2. One well-known representative of Cinema Verité declared publicly…
The IASB has issued a project report and feedback statement on its post-implementation Review of IFRS 13 Fair Value Measurement. This is how it summarizes the overall findings: The Board concluded that IFRS 13 is working as intended. In particular: the information required by IFRS 13 is useful to users of financial statements. some areas…
A European example of challenges in applying the IFRS 13 disclosure requirements 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 Real Estate Investment Trust and…
Some of Canada’s provincial regulators recently released CSA Multilateral Staff Notice 51-349 Report on the Review of Investment Entities and Guide for Disclosure Improvements, which “summarizes key findings from an Ontario Securities Commission (OSC) staff review of the continuous disclosure of reporting issuers that meet the definition of an investment entity under IFRS 10 Consolidated Financial Statements.” The…
We’ve looked several times already (here and here) at the concept of an active market as defined in IFRS 13, in particular through a couple of instances where European regulators took issue with an issuer’s contention that a particular shareholding wasn’t traded in such a market. CPA Canada’s IFRS Discussion Group recently considered the same…
A European example of interpreting one of the key concepts in measuring fair values under IFRS 13 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 17th edition: “The issuer invested in…
Some European observations on compliance with IFRS 13 We’ve already covered some of the material in the ESMA Report on Enforcement and Regulatory Activities of Accounting Enforcers in 2014, issued a while ago by the European Securities and Markets Authority. Here’s another extract: “Considering the date of the first application of IFRS 13 Fair Value Measurement,…
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…
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…
A European example of interpreting one of the key concepts in measuring fair values under IFRS 13 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 16th edition: “The issuer is a…
John Hughes IFRS Blog 