Here’s another issue considered in the past by CPA Canada’s IFRS Discussion Group: “An entity may settle a loan due to a shareholder by the issuance of the entity’s equity instruments (for example, common shares). This transaction may give rise to a difference between the carrying amount of the shareholder loan and the fair value…
Here ‘s another issue recently discussed by CPA Canada’s IFRS Discussion Group A reporting issuer prepares Q2-2018 and Q3-2018 interim financial statements for the six months and nine months ending June 30 and September 30, 2018, respectively. The reporting issuer adopts IFRS 9 and IFRS 15 on January 1, 2018, and is considering the extent…
A recent article on CCH Daily summarized a report from Moody’s Investor’s Service on “five critical drawbacks in debt reporting, given an environment with low interest rates and volatile currencies.” The underlying report doesn’t appear to be easily accessible anymore, so here’s the summary provided by CCH: “The report says the first concern is that…
A European example of challenges in applying one of the more complex aspects of IAS 39 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 entity has entered into several…
The IASB has issued Prepayment Features with Negative Compensation, an exposure draft of proposed amendments to IFRS 9, Financial Instruments, with comments to be received by May 24, 2017. You’ll recall that under IFRS 9, an entity classifies financial assets for purposes of ongoing measurement on the basis of both its business model for managing…
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…
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,…
