No, relax – I’m only joking. What actually happened is that the IASB recently issued Property, Plant and Equipment: Proceeds before Intended Use, a limited-scope amendment to IAS 16. It focuses on one of the examples provided in IAS 16.17 of “directly attributable costs” of an item of property, plant and equipment, which are included…
A European example of issues arising in presenting operating measures in 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 22nd edition: The issuer uses the revaluation model in…
The US SEC has filed charges against the Canadian entity Penn West Petroleum Ltd. (now renamed Obsidian Energy Ltd.) and three former senior accounting and finance personnel alleging violations of the antifraud, recordkeeping, internal controls, and reporting provisions of the federal securities laws arising from a multi-year accounting fraud. Penn West prepared the financial statements…
Here’s an issue discussed a while ago by Canada’s IFRS Discussion Group: “Entity A acquires 80 per cent of the issued shares of Entity B. Consideration is in the form of cash. Entity B has just one asset, the rights to a mineral property in the exploration and evaluation stage. As a result of the…
When Canada was first learning about IFRS, the IAS 16 revaluation model probably received disproportionate attention, largely just because it was easy to talk about (to a point anyway). As it turned out, very few Canadian companies actually chose this option – almost all of them stuck with the familiar cost model. A couple did take the…
Some of the issues arising in deferring gains, rather than recognizing them immediately Here’s an extract from some financial statements of a few years ago: Here’s the note that discusses the deferred gain: I should emphasize at the outset that I’m just using this interesting disclosure as a springboard to muse on the general issue, rather…
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 operates in the commercial and agricultural industry and owns a large plot of land, which had…
Is it possible to imagine a principles-based accounting system where all the principles set out for different items perfectly align with each other…? …maybe a system where everything is measured at fair value, and all the changes go through a single measure of profit or loss? Of course, such a system would bring more measurement…
Some observations on the IASB’s recent amendments to the existing requirements for biological assets, including a new concept of “bearer plants” The IASB has issued Agriculture: Bearer Plants, amendments to IAS 16 and IAS 41, effective for annual periods beginning on or after January 1, 2016. Prior to the amendments, IAS 41 sets out a…
The IASB recently issued Clarification of Acceptable Methods of Depreciation and Amortization (Amendments to IAS 16 and IAS 38), effective for annual periods beginning on or after January 1, 2016. To read this post, go to http://mnp.ca/en/media-centre/blog/2014/5/21/clarifying-depreciation-and-amortization-at-the-margins
John Hughes IFRS Blog 