The IASB’s conceptual framework – prudently stirred, but not shaken

Let’s take a look at another aspect of the IASB’s recently issued revised conceptual framework for financial reporting. The revised document contains the following much-debated paragraphs: Neutrality is supported by the exercise of prudence. Prudence is the exercise of caution when making judgements under conditions of uncertainty. The exercise of prudence means that assets and…

ASPE – the seductive alternative

I’ve found it difficult to identify much objective research or commentary on the overall effectiveness of Canadian Accounting Standards for Private Enterprises (ASPE). This is hardly a surprise, as it’s almost as hard to get a read on the real value of IFRS, which of course has much greater overall visibility in the market and…

IFRS 15 in action – part 3

Let’s take a look at some other recent examples of changes resulting from the implementation of IFRS 15. This is from UGE International Ltd.: I mentioned before that although the standard is called “Revenue from Contracts with Customers,” we may – who knows – identify some cases over time where the bottom-line impact flows as…

Principles of disclosure – what we talk about when we talk about financial statements

Let’s return to the IASB’s Principles of Disclosure discussion paper, for which the comment period closed in October…. The discussion paper carved out some space to describe an approach developed by the staff of the New Zealand Accounting Standards Board, with the following main features: (a) the inclusion of disclosure objectives, comprising an overall disclosure objective…

Accounting policy changes – a bigger carrot

The IASB has issued Accounting Policy Changes, an exposure draft of proposed changes to IAS 8, with comments to be received by July 27, 2018. The exposure draft proposes adding the following new definition to IAS 8: An agenda decision is a decision published by the IFRS Interpretations Committee explaining its rationale for not adding…