The tangled intersection of IAS 23 and IFRS 15… Here’s the background to an issue recently discussed by CPA Canada’s IFRS Discussion Group: Entity A constructs and sells an apartment unit to a customer. The customer pays the full consideration up front. Entity A concludes that revenue from apartment sales is recognized at a point…
The Securities and Exchange Commission recently voted to propose rule amendments to improve the information that investors receive regarding the acquisition and disposition of businesses. As the SEC Chair put it in a press release: “The proposed rules are, first and foremost, intended to ensure that investors receive the financial information necessary to understand…
The IASB has published for comment Interest Rate Benchmark Reform, an exposure draft of proposed amendments to IFRS 9 and IAS 39, with comments requested by June 17, 2019. The main reference point for this effort was Reforming Major Interest Rate Benchmarks, a report carried out by the Financial Stability Board in 2014. As the…
An example of issues arising in applying IFRS 5 to assets held for sale Here’s something I recently read about: Construction, services and property group Kier has been forced to restate its debt by more than £40 million after uncovering an accounting error, reports have revealed. In a recent trading update, the group said it…
This is the 400th posting on this blog… ..so I thought I might take a brief pause for review. From my perspective, the number of posts is actually significantly higher, because before this one, I maintained a similar blog on the website of a Canadian accounting firm. When that firm merged with another, those posts…
The IASB has issued an exposure draft of Annual Improvements to IFRS® Standards 2018–2020, with comments requested by August 20, 2019. There are only four items (see, IFRS is already virtually perfect as it is!) Here they are: Financial instruments IFRS 9 regards an exchange of debt instruments with substantially different terms between an existing…
A new Australian-based Universal Commons Project “seeks to use the power of the market to preserve and improve our precious social and natural assets, which we call Social and Natural Capital, by internalising them into commercial decision making.” Here’s how it sums itself up: The problem the Universal Commons is aiming to solve is that…
The Trustees of the IFRS Foundation are inviting stakeholder comment on proposed amendments to its Due Process Handbook, the procedural requirements followed by the International Accounting Standards Board and the IFRS Interpretations Committee. I’ve never been too interested in the internal workings of the IFRS Foundation – I’m only really bothered with what comes out…
I thought it might be interesting to remind the world of Toward a Measurement Framework for Financial Reporting by Profit-Oriented Entities, a paper by Alex Milburn, issued in 2012 by the Canadian Institute of Chartered Accountants (now CPA Canada) As background, we know of course that IFRS employs different measurement bases for different assets and…
I’ve written in the past about a June 2018 Hans Hoogervorst speech, IFRS standards as enlightened self-interest This was the key passage: Given the voluntary nature of IFRS adoption, we like to believe that the adherence to our Standards is a reflection of the quality and inclusiveness of our work. More importantly, most of our…
John Hughes IFRS Blog 