It’s incremental!

Issues relating to the costs of raising equity 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 15th edition: “The issuer is a pharmaceutical company which was listed for the first time…

Accounting for revenue – I’ll bill you, then hold!

Another area where IFRS 15 might cause differences from existing accounting practices Some interesting revenue-related issues come up through bill and hold arrangements – ones in which (to cite the IFRS 15 definition) “an entity bills a customer for a product but the entity retains physical possession of the product until it is transferred to…

Let’s reimagine accounting! By lunchtime!

Notes on a recent speech by SEC Commissioner Kara M. Stein: Here’s a lengthy extract: “…  As both practitioners and scholars of securities law, you know that accounting is the foundation for much of what we do.  Everything from our financial reporting regime to oversight of financial firms’ liquidity and capital depends upon reliable, consistent,…

New leases standard – getting close

The IASB has issued Leases: Practical Implications of the new Leases Standard, a project update. Written plainly and set out clearly, it’s likely to be a useful document for those who know something big is coming, but haven’t to this point immersed themselves in understanding exactly what that is. It’s not really mandatory reading from…

IFRS – controlling the invisible hand?

Notes on a recent speech in Edinburgh by IASB Chair Hans Hoogervorst He starts as follows: “Edinburgh was the home town of Adam Smith, often referred to as the father of modern economics. Adam Smith is best known for The Wealth of Nations and its concept of the ‘invisible hand’. In his view, rational self-interest…