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
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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
IAS 40 – Investment Property
An investment property is land or buildings or both, that is held by an entity to earn rentals and/or for its capital appreciation potential. One of the distinguishing characteristics of investment property is that it generates cash flows largely independent of the other assets held by an entity. The following are not investment property: Property … Continue reading IAS 40 – Investment Property
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
IFRS 13 – Adjusting fair value for condition and location
An entity owns a forest. The trees take approximately 27 years to mature, after which they can be cut down and sold. The average age of the trees in the forest is 15 years at the end of the reporting period. The current use of the forest is presumed to be its highest and best … Continue reading IFRS 13 – Adjusting fair value for condition and location
IFRS 15 – Sale with a right of return
A right to return enables a customer to receive: A full or partial refund of any consideration paid; A credit that can be applied against amounts owed or that will be owed to the vendor; Another product in exchange; Any combination of the above. A right to return may be given for various reasons such … Continue reading IFRS 15 – Sale with a right of return
IFRS 16 – VARIABLE PAYMENTS
Variable payments fall under two major categories: Variable payments that depend on an index or a rateOther variable payments Variable payments that depend on an index or a rate – accounting treatment Include in the initial measurement of the lease using the index or rate as at the commencement date.Remeasure lease in the period the … Continue reading IFRS 16 – VARIABLE PAYMENTS
IFRS 16 SEMINAR
Our IFRS 16 seminar will take place on 25/6/2019 at the Synergy Conference Center. Please note that places are limited and will be allocated on a first come first served basis. See below for details and/or register your interest here. ABOUT THIS EVENT IFRS 16 Leases brings significant changes in accounting requirements for lease accounting, primarily for lessees. IFRS … Continue reading IFRS 16 SEMINAR
IFRS 16 vs. IAS 17 – Presentation
Entity C has a 5-year lease for the floor of an office building. It pays $75.000 a year and has an incremental borrowing rate of 5% (the rate implicit in the lease is not readily determinable). The tables below illustrate the impact on net income and EBITDA depending on whether IAS 17 or IFRS 16 … Continue reading IFRS 16 vs. IAS 17 – Presentation
IFRS 15 SEMINAR
Our IFRS 15 seminar will take place on 14/5/2019 at the Synergy Conference Center. Please note that advance booking is essential as only 10 places are available for this event! See below for details and/or register your interest here. About this Event The IASB’s Standard IFRS 15 Revenue from Contracts with Customers is now effective for periods beginning on or after 1 January … Continue reading IFRS 15 SEMINAR
