Non-GAAP measures- just try messing with us now!

Canadian securities regulators publish final rule for non-GAAP and other financial measures, announces a recent news release Here’s some of what it says: The Canadian Securities Administrators (CSA) today published disclosure requirements for issuers that disclose non-GAAP (generally accepted accounting principles) and other financial measures on a voluntary basis. The rule improves the quality of…

Right-of use assets – let’s depreciate or maybe capitalize, or both!

Here’s the background to another issue recently discussed by Canada’s IFRS Discussion Group: Entity A enters into a contract for a ground lease of land and begins construction of a manufacturing facility where it will operate its manufacturing plant. The contract is determined to be a lease under IFRS 16. The lease commenced on September…

ESMA’s report on enforcement actions – bow to the numbers!

The European Securities and Markets Authority (ESMA) has issued its report on Enforcement and regulatory activities of European enforcers in 2020. The report provides “an overview of the activities of ESMA and of accounting enforcers in the European Economic Area…when examining compliance of financial and non-financial information provided by issuers in 2020 (and) presents the…

Canada’s emergency wage subsidies – find them if you can!

Flexible reporting standards mean investors know little about when companies used emergency wage subsidies, announces the title of a recent Globe and Mail article by David Milstead This is how it starts off: Canada’s three major telecommunications companies took tens of millions of dollars from Canada’s Emergency Wage Subsidy program. For most of the pandemic,…

Lack of exchangeability, or: accounting for hell

The IASB has issued the exposure draft Lack of Exchangeability, with comments to be received by September 1, 2021 IAS 21 generally requires using a spot exchange rate when an entity reports foreign currency transactions or a foreign operation’s results and financial position in its financial statements. The standard specifies the exchange rate to use…

Philip Morris’ integrated report, or: lighting up!

I happened upon an article on the Integrated Reporting website, on producing Philip Morris International Inc.’s first integrated report Co-authored by the company’s chief sustainability officer, it starts off like this: On June 30, 2020 Philip Morris International, Inc. (PMI) published its first integrated report titled  “Delivering a Smoke-Free Future: Progress toward a world without cigarettes.” The…

A pilot approach to disclosure – what if it don’t fly?

As we discussed here, the IASB has issued the exposure draft Disclosure Requirements in IFRS Standards—A Pilot Approach: Proposed Amendments to IFRS 13 and IAS 19, with comments requested by October 21, 2021. In a nutshell, the draft guidance would require entities to comply “with overall disclosure objectives that describe the overall information needs of…

A new approach to disclosure – no more mindless checklists!

The IASB has issued the exposure draft Disclosure Requirements in IFRS Standards—A Pilot Approach: Proposed Amendments to IFRS 13 and IAS 19, with comments requested by October 21, 2021. Here’s a portion of how the accompanying news release sums it up: These proposals would enable companies to enhance their judgement and reduce ‘boilerplate’ information, giving…

Sale-leaseback transactions in cash flow statements, or: on the other hand…

Here’s the background to another issue recently discussed by Canada’s IFRS Discussion Group: An entity (Seller-lessee) sells a building to another entity (Buyer-lessor) for cash of CU2,000,000. Immediately before the transaction, the building is carried at a cost of CU1,000,000. At the same time, Seller-lessee enters into a contract with Buyer-lessor for the right to…