Financial Reporting - Latest Articles
Students studying for professional examinations which offer a choice of…
Steve Collings considers the Consolidated Statement of Comprehensive Income (previously…
Students studying any financial reporting papers will come across the…
Students studying for professional examinations which offer a choice of UK or International Standards for financial reporting papers often ask what the differences are between financial reporting under UK GAAP and IFRS.
This article looks at some of the most fundamental differences between UK Financial Reporting Standards (FRS) and the International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS).
My initial answer to this (frequently asked) question is “not a lot”. The reason is that financial reporting under UK GAAP has more or less followed that of IFRS as it has always been the intention…
Steve Collings considers the Consolidated Statement of Comprehensive Income (previously known as the Consolidated Income Statement) and considers the approach to answering such a question in an exam. (This follows on from Steve’s last article ‘Consolidating your knowledge about Consolidated Accounts’).
First let us consider the ‘technique’ when preparing a consolidated statement of comprehensive income. Please note you might have your own technique which may be as effective – if this is the case then please do continue to use this.
The adjustments required for consolidation of a subsidiary are as follows:
• Eliminate…
Students studying any financial reporting papers will come across the concept of ‘group accounts’ – particularly consolidations. This is the first in a series of three articles on consolidations and the first considers the consolidated balance sheet (statement of financial position); it considers the mechanics of it and a recommended method on how to construct the consolidated balance sheet (statement of financial position) for the purposes of exam revision. The next article considers the consolidated income statement (statement of comprehensive income).
Quick summary of the consolidated balance sheet (statement of financial position)
Purpose
The…
Students studying for financial reporting papers need to be aware of the revisions to IFRS 3 ‘Business Combinations’ and IAS 27 ‘Consolidated and Separate Financial Statements’. If you are sitting for examinations with professional bodies who adopt the six-month issue rule, then the changes to IFRS 3 will be examinable from the December 2008 sittings as the revised standards were issued on 10 January 2008 and did contain some amendments from the previously issued Exposure Drafts. However, in practical terms the revisions are not due to take effect until 1 July 2009, although early adoption is permitted.
This…
The Companies Act 2006 has received lots of press coverage within the accountancy profession recently and, as is often the case with any new Act or accounting standard, sometimes there is the odd ‘loophole’ which leaves the Accounting Standards Board (ASB) with a dilemma. The most recent dilemma to face the ASB is the issue of ‘off-balance sheet finance’. Steve Collings examines the issues involved.
Off-balance sheet finance is a concept that has been with the accountancy profession for years. Prior to the issuance of accounting standards such as FRS 5 ‘Reporting the Substance of Transactions’, SSAP 21…
