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IFRS 16 and Short-term Leases

IFRS 16 provides an optional exemption from the full requirements of the standard for short-term leases (leases with a lease term of 12 months or less). If the entity elects to take the exemption, lease payments are recognized as an expense on a straight-line basis over the lease term or another systematic basis. The short-term lease exemption must be applied consistently to all … Continue reading IFRS 16 and Short-term Leases

IFRS 16 – Substitution Rights

Under the new standard, a lease is a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration. In applying the definition of a lease, there are several criteria that must be met: There is an identified assetThe lessee obtains substantially all the economic benefitsThe lessee … Continue reading IFRS 16 – Substitution Rights

IFRS 16 and COVID-19 related rent concessions

On 28 May 2020, the IASB issued amendments to IFRS 16, which provide relief for lessees in accounting for rent concessions granted as a direct consequence of COVID-19. Normally this type of rent concessions would meet the definition of a lease modification, which requires lessees to remeasure the lease liability based on the revised consideration … Continue reading IFRS 16 and COVID-19 related rent concessions

Financial Statement Fraud

Harry Markopolos once said: “…it’s not the armed robbers or drug dealers who cause the most economic harm, it’s the white-collar criminals living in the most expensive homes who have the most impressive resumes who harm us the most. They steal our pensions, bankrupt our companies, and destroy thousands of jobs, ruining countless lives.” What … Continue reading Financial Statement Fraud

Cryptocurrencies

A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems. The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, which serves as a public … Continue reading Cryptocurrencies