IFRS in the new world – hopes and fears

Are traditional metrics still relevant?, asks an article on the IFRS.org website. The article summarizes some of the observations arising from a June 2018 panel debate hosted by CFA Institute and the IFRS Foundation, “asking whether traditional metrics are still relevant amidst rapid technological advancements.”  The observations are grouped under the headings “hopes” and “fears”…

IFRS – is the world still yours?

The European Commission has issued a consultation document Fitness Check on the EU Framework for Public Reporting by Companies, with responses requested by July 21, 2018. The objectives of the “fitness check” are as follows: 1) to assess whether the EU public reporting framework is overall still relevant for meeting the intended objectives, adds value…

IFRS 15 in action – part 5: some retail issues

Let’s take a look at some other recent examples of changes resulting from the implementation of IFRS 15. This is from Reitmans (Canada) Limited: As we’ve discussed before, for purposes of the first issue, the stand-alone selling price is the price at which an entity would sell a promised good or service separately to a…

The IASB’s conceptual framework – a bright day for assessing stewardship!

Let’s take a look at another aspect of the IASB’s recently issued revised conceptual framework for financial reporting.  Here are some brief extracts from the document: Information about the nature and amounts of a reporting entity’s economic resources and claims can help users to identify the reporting entity’s financial strengths and weaknesses. That information can…

Natural capital – what gets measured gets trashed?

A couple of years ago, I briefly addressed the subject of “natural capital,” defined (in one place anyway) as “the stock of renewable and non-renewable natural resources (e.g., plants, animals, air, water, soils, minerals) that combine to yield a flow of benefits to people…” At that time I referred to the “Natural Capital Protocol,” a…

IFRS 15 in action – part 4!

Let’s take a look at some other recent examples of changes resulting from the implementation of IFRS 15. This is from Teck Resources Limited: This is a good illustration of one of the standard’s basic conceptual building blocks: let’s briefly summarize. An entity recognizes revenue when (or as) it satisfies a performance obligation by transferring…

Principles of disclosure – of primary concern

Let’s return to the IASB’s Principles of Disclosure discussion paper, for which the comment period closed in October…. The discussion paper noted the following problem: The Board has received…feedback that some users of financial statements analyze the information in the statements listed in paragraph 3.3(a) (i.e. the balance sheet, income statement, statement of changes in…