In a recent post, I noted a couple of examples of how another writer, Jason Voss, focused on certain aspects of financial reporting as an indication of a reporting entity’s culture or character: Knowing that some companies report a bland “net revenues” while others report “customer sales” tells you something about the culture of the…
A European example of faulty reasoning in applying IAS 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 19th edition: The issuer specialized in planting cacao trees, operating a cacao plantation…
I came across an interesting blog post by Jason Voss, CFA : The Top Five Accounting Mistakes Analysts Make It’s actually several years old, and presumably written in the context of US GAAP rather than IFRS. Even so, I thought it was a very stimulating reference point, so here are the five mistakes, along with…
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…
If I return so soon to the writings of Al Rosen (after doing so here and here), it’s not because I’m obsessed with him (please let that be true!) but because he’s perhaps the most prominent commentator in Canada on IFRS-related matters, and it all seems to warrant some response from someone (even if I…
The European Securities and Markets Authority (ESMA) has issued a report on Review of Fair Value Measurement on the IFRS financial statements The report “builds on a desktop review of the 2015 financial statements of a sample of 78 issuers from different industries, and on the evidence from enforcement actions taken by European enforcers relating to…
As we’ve discussed many times in the past, the IASB has issued IFRS 15, Revenue from Contracts with Customers, effective for annual reporting periods beginning on or after January 1, 2018. Canada’s IFRS Discussion Group recently considered the following issue relating to the application of IFRS 15: Entity A develops, manufactures and distributes innovative products. Product X…
November 2008 “On November 14, 2008, the SEC issued the much anticipated proposed IFRS “Roadmap”. The Roadmap outlines 7 milestones which if achieved could result in mandatory adoption of IFRS by U.S. Issuers in fiscal years ending on or after December 15, 2014. Also contemplated is allowing certain U.S. issuers the option to early adopt of…
A European example of complexities in applying IFRS 3 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 owned Business E whose net assets amounted to CU 1.3M…
ESG: good companies can make good stocks, announces a recent release by Bank of America Merrill Lynch. Here’s how it expands on that: It’s not just for tree-huggers – incorporating environmental, social and corporate governance (ESG) considerations into one’s framework is critical. First, these metrics have been strong indicators of future volatility, earnings risk, price…
John Hughes IFRS Blog 