IFRS 16 – oddities of the transition process

The IASB recently published an “Implementation Update” on IFRS 16 Leases In the document, “four IASB Members discuss messages they have heard from stakeholders about IFRS 16 implementation over the last year and give advice to companies implementing the new Standard.” Much of this messaging really only consists of emphasizing various bits of the standard,…

Focusing on the long-term: you’ll thank me for it in thirty years!

Rising to the challenge of short-termism is a recent report issued by FCLT Global FCLT Global (Focusing Capital on the Long-Term), with a membership of asset owners and managers and corporations, is “dedicated to developing practical tools and approaches that encourage long-term behaviors in business and investment decision-making”. The introduction to the latest report sums…

More on non-GAAP measures, or: just shoot me now

The CFA Institute has issued two related papers on non-GAAP measures, Investor Uses, Expectations and Concerns on Non-GAAP Financial Measures (NGFMs) and Bridging the Gap- Ensuring Effective Non-GAAP and Performance Reporting. Here in part is how the first paper sums up its findings: “Our survey results establish that company-reported NGFMs are useful for investors who apply them…

Digital currency -the next standard-setting frontier?

I recently happened across Digital currency – A case for standard setting activity. A perspective by the Australian Accounting Standards Board (AASB) Here’s the executive summary: In our opinion there is a lack of clear guidance in IFRSs and, as a consequence, digital currencies could be accounted for under IAS 2 Inventory or IAS 38…

New leases standard – defining the scope

As we discussed here, the IASB has issued IFRS 16 Leases, effective for annual reporting periods beginning on or after January 1, 2019. We’ve already covered the main aspects of lessee accounting in a series of articles. But let’s go back and examine the question of when you even have to worry about the standard.…

Mineral resources – it’s feasible, and here’s how I know!

An issue in interpreting IFRS 6 raises broader policy questions Here’s an issue recently discussed by CPA Canada’s IFRS Discussion Group: Under IFRS 6 Exploration for and Evaluation of Mineral Resources, demonstrating technical feasibility and commercial viability is important because the standard does not apply to expenditures incurred “after the technical feasibility and commercial viability…

The SEC and IFRS: something wicked this way comes

Notes on “A U.S. Imperative: High-Quality, Globally Accepted Accounting Standards,” a recent public statement by outgoing SEC Chair Mary Jo White Regardless of what the title may seem to promise, it’s as bland a “statement” as you’ll ever come across, lacing even the hint of a distinctive thought, insight, or turn of phrase (by comparison, one might…

Climate-related disclosures – a breakthrough?

The Task Force on Climate-related Financial Disclosures, which we discussed here, has now issued its report of recommendations. It builds these recommendations around “four thematic areas that represent core elements of how organizations operate.” Here they are: Disclose the organization’s governance around climate-related risks and opportunities. Disclose the actual and potential impacts of climate-related risks…