Post-implementation review of IFRS 3 – it’s almost perfect!

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…

Cash-generating units: the whole conversation

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.…

Cuckoo!

Thoughts on recent remarks by IASB Chair Hans Hoogervorst In the famous film The Third Man, Orson Welles’ character Harry Lime delivers the following meditation: “You know what the fellow said – in Italy, for thirty years under the Borgias, they had warfare, terror, murder and bloodshed, but they produced Michelangelo, Leonardo da Vinci and…

Impairment calculations and discount rates – easy to be hard

A European example of challenges in determining the appropriate discount rate for purposes of the impairment calculation 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 13th edition: “The issuer operates in…