How much does it matter when items are wrongly classified and labeled within the income statement? 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 20th edition: The issuer is a savings…
At a recent meeting, the IASB’s Capital Markets Advisory Committee discussed a few issues relating to goodwill and impairment. In the accompanying agenda paper, staff indicated that they’re considering recommending some additions to the existing disclosure requirements in IFRS 3, focused on assisting users to better understand “the strategic rationale for and the key objectives…
We’ve already considered a couple of the issues raised by the EFRAG discussion paper Goodwill impairment test: can it be improved?, which was published last June. Here’s another topic: In accordance with IAS 36, estimating value in use involves estimating the future cash flows to be derived from continuing use of the CGU and from…
A European example of issues arising in applying IAS 36 As part of its activities, the European Securities and Markets Authority (ESMA) organizes a forum of enforcers from 30 different European jurisdictions, all of whom carry out monitoring and review programs similar to those carried out here by the Canadian Securities Administrators. ESMA recently published…
I tuned in a bit late to the EFRAG discussion paper Goodwill impairment test: can it be improved?, which was published last June As always with such a title, there’s very little likelihood that the answer would turn out to be, basically, no it can’t. The paper – which is timely as the IASB is…
The Alberta Securities Commission has recently issued its 25th Annual Corporate Finance Disclosure Report The report contains observations on MD&A, prospectuses and other matters, but I’ll just focus here on what it has to say about financial statements. It highlights four IFRS-related areas in particular, and digs into some of these in somewhat greater detail…
We’ve previously looked here at the issue of allocating corporate costs to cash generating units for purposes of impairment testing. On that previous occasion, we looked at a European example of an entity that didn’t allocate the costs of corporate officers to CGUs for purposes of determining cash flow estimates. In that case, the local…
The IASB recently completed its Post-implementation Review of IFRS 3 Business Combinations. This is how the news release summed up the exercise: “It shows general support for the accounting requirements in the Standard but identifies some areas where further research will be undertaken, including accounting for goodwill. The IASB conducts Post-implementation Reviews (PIR) of its…
A European example of assessing impairment (or not) in a related party situation 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 11th edition: “The issuer’s accounting policies in its 2009 financial…
by John Hughes 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 15th edition: “The issuer is in the retail industry and has a significant network of branches of merchants and retailers.…
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