Strategic Business Reporting-SBR

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

Although IFRS 9® Financial Instruments was first issued in November 2009, it has been updated on a frequent basis. A completed version of the IFRS standard was finally issued in July 2014. Whilst IFRS 9 replaced IAS 39® Financial Instruments: Recognition and Measurement, IAS 32 Financial Instruments: Presentation is still applicable. The objective of IFRS 9 is to ‘…establish principles

IFRS 13 has required a significant amount of work by entities to simply understand the nature of the principles and concepts involved. IFRS® 13, Fair Value Measurement was issued in May 2011 and defines fair value, establishes a framework for measuring fair value and requires significant disclosures relating to fair value measurement. The International Accounting Standards Board (the Board) wanted to enhance

IFRS® 9, Financial Instruments, is the result of work undertaken by the International Accounting Standards Board (the Board) in conjunction with the Financial Accounting Standards Board (FASB) in the US. It was last revised in October 2017. This article focuses on the accounting requirements relating to financial assets and financial liabilities only. Classification of financial assets Impairment of financial assets

International Financial Reporting Standard (IFRS®) 2, Share-based Payment, applies when a company acquires or receives goods and services for equity-based payment. Recognition of share-based payment Equity settled transactions Performance conditions Cash settled transactions Deferred tax implications Disclosure These goods can include inventories, property, plant and equipment, intangible assets, and other non-financial assets. There are two notable exceptions: shares issued in

Deferred tax is a topic that is consistently tested in Financial Reporting (FR) and is often tested in further detail in Strategic Business Reporting (SBR). This article will start by considering aspects of deferred tax that are relevant to FR before moving on to the more complicated situations that may be tested in SBR. The basics The FR exam The

In March 2018, the International Accounting Standards Board (the Board) finished its revision of The Framework for Financial Reporting (the Framework). The primary purpose of financial information is to be useful to existing and potential investors, lenders and other creditors (users) when making decisions about the financing of the entity and exercising rights to vote on, or otherwise influence, management’s