Applying lease concepts, or: blowing in the wind!

CPA Canada’s IFRS Discussion Group recently discussed the following fact pattern: A landowner (“Landowner”) with a plot of agricultural land enters into an agreement for a specified period of time with Entity X (“Customer”) allowing the Customer to place a specified number of wind turbines and associated infrastructure on the plot of land. The Customer…

More intangible assets- the next balance sheet wave?

Are we approaching a revolution in accounting for intangible assets…? Asked in an interview about major current challenges and opportunities, the new IASB Chair Andreas Barckow commented as follows: The biggest challenge I see is to remain relevant in an ever-changing environment. While I think that our literature has generally stood the test of time,…

Management commentary – a risk-laden enterprise!

As we covered here, the IASB recently issued for comment a new framework for management commentary. The document describes management commentary as “a report that complements an entity’s financial statements. It provides management’s insights into factors that have affected the entity’s financial performance and financial position and factors that could affect the entity’s ability to…

Sustainability standards – if they affect anyone’s decisions, we don’t want them!

Here’s an extract from a comment letter submitted by US SEC Commissioner Hester M. Peirce to the IFRS Foundation, on its initiative to create a sustainability standards board Financial statements, prepared according to high-quality accounting standards, enable investors to make informed economic decisions. As the Foundation’s website explains, “IFRS Standards contribute to economic efficiency by…

Economic benefits from a windfarm – in substance it’s all ours!

The IFRIC recently issued for comment a tentative agenda decision on Economic Benefits from Use of a Windfarm, with comments requested by August 16, 2021. Here’s the fact pattern: The Committee received a request about whether, applying paragraph B9(a) of IFRS 16, an electricity retailer (customer) has the right to obtain substantially all the economic…

A new capitalism, with the same old spin…

A recent article in CPA Canada’s Pivot magazine, written by Gord Beal, posits that “a new capitalism requires a new accounting.” Here’s an extract: Investors and business leaders are joining others who are challenging an unsustainable status quo. Although the degree and speed to which capitalism will evolve remains to be seen, dramatic shifts in…

Management commentary – a major overhaul, but for how many?

IASB consults on a new framework for management commentary reflecting changes in corporate reporting landscape, announces a recent news release Here’s how it sums it up: Management commentary—in some countries referred to as management discussion and analysis—is a report that complements a company’s financial statements. The proposed framework represents a major overhaul of IFRS Practice Statement…