IFRIC has issued for comment a draft agenda decision on costs to fulfill a contract under IFRS 15, with comments requested by May 15 I’ll post the entire text here: The Committee received a request about the recognition of costs incurred to fulfill a contract as an entity satisfies a performance obligation in the contract…
Notes on Hans Hoogervorst’s recent speech “on what sustainability reporting can and cannot achieve.” I have to admit I could hardly get past the speech’s astonishing opening icebreaker: First, I want to thank Professor Alan Jagolinzer of the Cambridge Judge Business School for organising this event. Alan has been an Academic Practice Fellow at the…
Various observations on limitations of the cash flow statement A former IASB board member, Steven Cooper, is among those behind the recently established blog The Footnotes Analyst. A recent entry focused on the significance of investing and financing transactions not involving the movement of cash, and therefore excluded from the cash flow statement: the new…
How much does it matter when items are wrongly classified and labeled within the income statement? Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA) (for more background see here); this is from their 20th edition: The issuer is a savings…
Issues arising in identifying the incremental borrowing rate under IFRS 16. As we discussed here, this is what the standard has to say about initially measuring the lease liability: “At the commencement date, a lessee shall measure the lease liability at the present value of the lease payments that are not paid at that date.…
One hundred academics and non-academics recently met in Sydney, Australia, for the 2018 IASB Research Forum, to discuss some of the latest research into financial reporting matters. The Forum is organized annually by the IASB in collaboration with an academic journal to create a platform for presentations and discussions of new accounting research of relevance…
At a recent meeting of the Accounting Standards Advisory Forum, the group discussed the ongoing Management Commentary project. Among the issues set out in the underlying agenda paper was the staff’s proposal “that the revised Practice Statement will describe how management could apply (various) aspects of neutrality that could alter a user’s assessments.” The concept…
Canadian Accountant recently published Overwhelming Evidence of IFRS Failure, an article by our old friend Al Rosen The article is classic Rosen, a sort of accounting-commentary equivalent of an aging rock star touring his greatest hits, wooing even skeptics with the implied promise that we might never get to hear them again (even as we…
Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA) (for more background see here); this is from their 22nd edition: Subsidiary A of the issuer issued perpetual notes. The issuer faced liquidity issues. One of the provisions of the financing agreement…
The IASB has issued a project summary on its research into discount rates Here’s how it summed things up: Some IFRS Standards require or allow companies to use different discount rates for estimating future cash flows. In some cases, the differences are clearly justified because they reflect different risk factors or circumstances. In other cases, the reasons…
John Hughes IFRS Blog 