A new approach to disclosure – no more mindless checklists!

The IASB has issued the exposure draft Disclosure Requirements in IFRS Standards—A Pilot Approach: Proposed Amendments to IFRS 13 and IAS 19, with comments requested by October 21, 2021. Here’s a portion of how the accompanying news release sums it up: These proposals would enable companies to enhance their judgement and reduce ‘boilerplate’ information, giving…

Sale-leaseback transactions in cash flow statements, or: on the other hand…

Here’s the background to another issue recently discussed by Canada’s IFRS Discussion Group: An entity (Seller-lessee) sells a building to another entity (Buyer-lessor) for cash of CU2,000,000. Immediately before the transaction, the building is carried at a cost of CU1,000,000. At the same time, Seller-lessee enters into a contract with Buyer-lessor for the right to…

Business combinations under common control – applying the acquisition method

Let’s return to the IASB’s discussion paper Business Combinations under Common Control, on which comments are requested by September 1, 2021. As we discussed previously, the main proposal is that fair-value information should be provided when a business combination under common control affects shareholders outside the group. In all other cases, the Board is suggesting…

The (mostly unappealing) state of the bitcoin nation

“One of the world’s largest accounting firms, PricewaterhouseCoopers (PwC), has accepted its first ever bitcoin payment,” announced a recent story on cryptocurrencynews.com  It went on: PwC accepted bitcoin as payment for its advisory services, as it is currently working with multiple startups that deal in bitcoin and the cryptocurrency industry. PwC has also started to…

Going concern – all entirely obvious, except the parts that aren’t

Here’s a tentative agenda decision recently issued for comment by IFRIC: The Committee received a request about the accounting applied by an entity that is no longer a going concern (as described in paragraph 25 of IAS 1 Presentation of Financial Statements). The request asked whether such an entity…can prepare financial statements for prior periods on…

Sustainability reporting standards – meeting the needs of capital markets (did we leave anyone out?)

Momentum continues toward establishing a sustainability standards board… One of the most recent bulletins came in the wake of a meeting of IFRS Foundation trustees in early March, including the following: The Trustees welcomed the February 2021 public statement by the IOSCO Board, announcing IOSCO’s intention to work with the IFRS Foundation in developing a plan…

We’re out of here in two months, so let’s write it down now, no?

You’ll recall that right of use assets recognized under leasing arrangements are subject to the impairment requirements of IAS 36, and tested for impairment when indicators exist… If such indicators exist, an entity determines whether the ROU asset can be tested on a stand-alone basis or whether it should be tested as part of a…