Choosing the right accounting policy under the IFRS framework

Accounting policy refers to the specific rule or principle that an entity applies to a transaction, other event or condition when preparing and presenting its financial statements. It encompasses everything from recognition and measurement to presentations and disclosures. For most transactions, other events or conditions, specific IFRS Standards apply. But what […]

IAS 1: small amendments with a potentially big impact on liability classifications

The International Accounting Standards Board (IASB) recently issued narrow-scope amendments to IAS 1 that clarify the existing requirements for classifying liabilities as current or non-current. In practice, the amendments could affect, for example, the classification of rollover facilities, with some becoming non-current, and convertible instruments, with some […]

Impairment of goodwill: will the IASB reintroduce previous requirements?

With the adoption of IFRS 3 Business Combinations in 2004, the International Accounting Standards Board (IASB) abolished the amortization of goodwill and introduced an impairment-only approach. In the years after the adoption, however, the Board soon noticed a couple of problems. Firstly, the mandatory impairment test is both costly and subjective. Secondly, imp […]

Investors call for better communication in Financial Reporting

Everyone understands that the IFRSs must be constantly refreshed in response to a fast-changing world. Over the last eight years, investors’ interests in financial reporting and supporting information has shifted from achieving short term goals to creating sustainable, long term value. Therefore, the need to update the quality and effectiveness of the communic […]

Inside the new IFRS 17 amendments (insurers, take note)

The International Accounting Standards Board (IASB) has recently published its proposed amendments to IFRS 17 Insurance Contracts. The amendments seek to make it easier for insurers worldwide to implement IFRS 17, a standard aiming to improve comparability in the sector, increase transparency on business profitability, and generate more insights on individual fi […]

Debt restructuring under IFRS 9: changes you may have missed

IFRS 9 has now been applicable for over a year, but some of its changes have often been either overseen or neglected—even when they could have a material impact on the accounts. One of these is the treatment of non-substantial modifications of financial assets or financial liabilities when amending contractual terms within a restructuring transaction. There is […]