Current accounting topics and guidelines
IFRS Alerts covering the latest changes published by the International Accounting Standards Board (IASB).
The preparation of financial statements in accordance with International Financial Reporting Standards (IFRS) is challenging.
Our ‘Insights into IFRS 8’ series considers some key implementation issues and includes interpretational guidance in certain problematic areas. We also include several examples illustrating the Standard’s requirements.
IFRS 3 ‘Business Combinations’ contains the requirements for transactions, which are challenging in practice.
Segment reporting is intended to give information to investors and stakeholders regarding the financial results and financial position of the entity that are used by the entity’s chief operating decision maker (CODM). Given this, IFRS 8 ‘Operating Segments’ provides the guidance to preparers on this area.
Generally, financial information is required to be reported on the same basis as is used internally for evaluating operating segment performance and deciding how to allocate resources to operating segments. IFRS 8 ‘Operating Segments’ sets out these requirements and asks for reconciliations of total reportable segment revenues, total profit or loss, total assets, liabilities and other amounts disclosed for reportable segments to corresponding amounts in the entity’s financial statements.
High quality management accounts enable management to monitor performance, allocate resources and devise business and market strategies. Therefore, they are particularly important for entities that operate in a variety of classes of business, geographical locations, regulatory or economic environments or markets.
A common question in board rooms around the world is how well are large and complex companies responding to market and regulatory expectations on the consequences of climate change in their audited financial statements?
IFRS 3 ‘Business Combinations’ contains the requirements for transactions, which are challenging in practice.
IAS 36 ‘Impairment of Assets’ is not a new Standard, and while many of its requirements are familiar, an impairment review of assets (either tangible or intangible) is frequently challenging to apply in practice. This is because IAS 36’s guidance is detailed, prescriptive and complex in some areas.
This article focuses on reverse acquisitions within the scope of IFRS 3.
Acquisitions of businesses can take many forms and can have a fundamental impact on the acquirer’s operations, resources and strategies.
A transaction in which a company with substantial operations (operating company) arranges to be acquired by a listed shell company should be analysed to determine how it should be accounted for under IFRS.
The preparation of financial statements in accordance with International Financial Reporting Standards (IFRS) is challenging.
IFRS 8 ‘Operating Segments’ requires much of management information for public listed entities to be published externally so that investors, analysts and other users of entities’ financial statements can review an entity’s operations from the same perspective as management.
