Auditors failed to raise alarm before 75% of UK corporate collapses, announced the title of a recent Financial Times article. Here’s some of what the article, written by Simon Foy, had to say: The article concludes by quoting the report as follows: “Until the culture of audit is reformed and a new and more effective…

Five years ago, we looked at the issue of an entity that settles a loan due to a shareholder by issuing equity instruments, and the accounting for the difference between the fair value of the consideration paid and the carrying value of the loan extinguished. Canada’s IFRS Discussion Group (as it was called at the…

The IASB has issued the exposure draft Contracts for Renewable Electricity, with comments requested by August 7, 2024. Here’s part of the summary in the news release: Taking the first of those bullet points, the underlying premise is that “if an entity uses the electricity in its operations, the recognition of the fair value changes…

As we noted here, the Accounting Café’s Toby York, recently asked: “Could accounting, a field too significant to be left solely to accountants, also be a compelling drama if given a chance? What would be the dramatic narrative?” I passed on some examples provided by others, but failed to pitch in with any of my…

The IFRS Foundation recently issued its 2023 Annual Report, titled Better information for better decisions. This includes its audited consolidated financial statements for the year ended December 31, 2023, and as these must rank among the financial statements for which it would be most embarrassing if anything were identified as being less than state of…

The IFRS Foundation recently published an introductory article Digital financial reporting—Facilitating digital comparability and analysis of financial reports  The article offers the following overview: It explains: “Digital financial reporting can improve capital market transparency and efficiency. Improved transparency promotes capital formation and allows companies to raise capital at a lower cost. This opens up greater opportunities…

As part of its activities, the European Securities and Markets Authority (ESMA) organizes a forum of enforcers from 38 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 some extracts from its confidential database of enforcement decisions on…

Toby York, ever-stimulating founder of The Accounting Café, posted the following on LinkedIn: I’ve said before that I’m not too optimistic that greater visibility in popular culture (or some manifestations of it anyway) would go particularly far in solving the profession’s recruitment and image problems (and at least in Canada, there’s apparently also a shortage…

While there’s much to be said about the recently-issued IFRS 18, Presentation and Disclosure in Financial Statements, the most important fact is simply that it won’t become effective until annual reporting periods beginning on or after January 1, 2027, and so no one needs to bother thinking about it any time soon. Thanks, that’s all…

The dismal case study of Trump Media & Technology Group In its own eye-rolling words, TMTG, the operator of the Truth Social platform, “aspires to build a media and technology powerhouse to rival the liberal media consortium and promote free expression. TMTG was founded to fight back against the big tech companies—Meta (Facebook, Instagram, and…