IASB

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 […]
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Materiality in IFRS: it’s on

Several major new IFRS standards have become effective recently or will do so soon and, as is the case for every new standard, these will mean changes and new requirements not only for accounting treatments but also for disclosures. Altogether, there will undoubtedly be a lot of additional work for both financial statement preparers and their auditors. Theref […]
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The debate continues over IFRS 9 (accounting for equity investments)

Will IFRS 9 end up discouraging investors? I asked that question in another article a few months ago in a discussion of the new requirements, which relate to the accounting treatment of equity investments under IFRS 9. In August 2018, the European Financial Reporting Advisory Group (EFRAG) published a summary of the 53 letters that constituents wrote in response […]

IFRS 3 and the IASB’s updated definition of “business”

It’s not always easy to determine if an acquired set of activities and assets results in a business or only in an asset acquisition. A high level of judgment is required for this, and it’s particularly important because this determination significantly affects how, from an accounting standpoint, the transaction is treated at its initial recognition and subse […]
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Disclosing judgements under IFRS: a guide

As you may have noticed, IFRS accounting is often not straightforward. Preparers frequently lose time digging through IFRS literature to decide how to account for a transaction. A few particularly grey areas would be: consolidate an entity or not (IFRS 10) equity versus liability (IAS 32) investment property or owner-occupied one (IAS 40) lease cla […]
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IASB seeks clarity by distinguishing equity from liability

In June 2018, the International Financial Standards Board (IASB) published its discussion paper on financial instruments with characteristics of equity (FICE). As part of its conceptual framework project, the discussion paper deals with improvements of IAS 32 Financial Instruments: Presentation with special regard to complex financial instruments. Background T […]
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