ACCA

Understanding the business model of an entity is helpful in analysing and communicating the essence of a business and for predicting the implications of a change in circumstance on a business. Strategic Business Reporting (SBR) candidates should use this technique to improve their answers to SBR questions and this article should help them to do this. The business model in […]

In 2013, the International Integrated Reporting Council (IIRC) released a framework for integrated reporting. The framework establishes principles and concepts that govern the overall content of an integrated report. Principle-based framework Relationship with stakeholders In 2013, the International Integrated Reporting Council (IIRC) released a framework for integrated reporting. This followed a three-month global consultation and trials in 25 countries. The

 This article looks at how reporting capital structure is challenging, but markets are keen for the information. Introduction What is it? Investor needs IAS 1 Disclosures Examples Companies Act Capitalisation table Debt and equity Diversity and difficulty Introduction Often the advice to investors is to focus upon cash and cash flow when analysing corporate reports. However insufficient financial capital can

For many years, regulators and standard-setters have debated how entities should best present financial performance and not mislead the user. Introduction Common practice Evaluating the aims Introduction Many jurisdictions have enforced a standard format for performance reporting, with no additional analysis permitted on the face of the Statement of Profit or Loss. Others have allowed entities to adopt various methods

According to IFRS® 3, Business Combinations, there are two ways to measure the goodwill that arises on the acquisition of a subsidiary and each has a slightly different impairment process. How to calculate goodwill Consider calculating goodwill Basic principles of impairment Consider an impairment review Goodwill and impairment Proportionate goodwill and the impairment review Consider an impairment review of proportionate

This article provides an introduction to IFRS® 3, Business Combinations and IFRS, 10 Consolidated Financial Statements, including piecemeal acquisitions and disposals. Purchase consideration Goodwill and non-controlling interests (NCI) Fair valuing assets and liabilities IFRS 10, Consolidated financial statements Disposal of controlling interest while retaining associate holding Purchase consideration The purchase consideration includes the fair value of all interests that the

There are many issues that accountants may encounter in practice for which no accounting standard currently exists; one example is cryptocurrencies. For example, as no accounting standard currently exists to explain how cryptocurrency should be accounted for, accountants have no alternative but to refer to existing accounting standards. This article demonstrates to Strategic Business Reporting (SBR) candidates how this can

The classification of debt and equity in an entity’s statement of financial position is not always easy for preparers of financial statements. Many financial instruments have both features with the result that this can lead to inconsistency of reporting. IAS® 32 clarifies the definition of financial assets, financial liabilities and equity. In doing so, it helps to eliminate any uncertainties

This two-part article considers the application of IFRS 15, Revenue from Contracts with Customers using the five-step model. Using the five-step model On 28 May 2014, the International Accounting Standards Board (the Board), as a result of the joint project with the US Financial Accounting Standards Board (FASB), issued IFRS® 15, Revenue from Contracts with Customers. Application of the standard is

This article considers the relevance of information provided by different measurement methods and explains the effect that they may have on the financial statements. The relevance of information provided by a particular measurement method depends on how it affects the financial statements. The cost should be justified by the benefits of reporting that information to existing and potential users. The different