Financial Reporting - Latest Articles
AppSlides announces the release of its iPhone/iPad app “IFRS Made…
On 17 August 2010, the International Accounting Standards Board (IASB)…
The concept of going concern has been in the profession’s…
Financial Reporting - Previous Articles
On 11 May 2010, the International Accounting Standards Board (IASB) published for comment their proposed changes to the way financial liabilities are to be accounted for. These changes were as a result of investor feedback and the IASBs work on financial assets and their issuance of IFRS 9: Financial Instruments which was issued in November 2009 but applies only to financial assets.
The IASB’s ‘project objective’ is to:
Address the volatility in the income statement (P&L) caused by changes in the credit risk of a financial liability (‘own credit’). In particular the ED (Exposure Draft) proposes changes in…
Steve Collings reviews the new book IFRS Student Manual 2010 by PWC (published by CCH).
Students of corporate reporting papers have the arduous and often complicated task of revising accounting standards. With most jurisdictions these days adopting International Financial Reporting Standards (IFRS) due to global convergence, the difficulty of this task is often accentuated by the fact that a lot of students currently work with domestic Generally Accepted Accounting Practice (GAAP), for example, UK Financial Reporting Standards (FRS), Statements of Standard Accounting Practice (SSAP) and Urgent Issues Task Force abstracts (UITF). The result is that due to the major…
Steve Collings looks at the fundamental principles in accounting for goodwill and intangible assets and also looks at some fundamental differences between current UK GAAP, IFRS and the proposed IFRS for SMEs.
As accountants we are all aware that an intangible asset does not have any physical form and accounting for such assets has always been a major issue for the accounting profession for many years. Goodwill particularly has always posed problems.
Goodwill
Goodwill can primarily take two forms: purchased goodwill and internally-generated goodwill. Goodwill is accounted for under the provisions in FRS 10 ‘Goodwill and Intangible Assets’…
In this article we take a look at the accounting treatment for leases and Hire Purchase contracts from the perspective of both the lessee and the lessor.
Accounting for leases and hire purchase contracts are dealt with in the provisions in SSAP 21 ‘Accounting for Leases and Hire Purchase Contracts’ and IAS 17 ‘Leases’. In some instances some lease transactions can form part of a complex arrangement or which contain options, provisions and guarantees which could well fall within the scope of FRS 5 ‘Reporting the Substance of Transactions’. It should be noted at this point that where such…
In this article, Steve Collings discusses the method used to deal with foreign exchange transactions under the prescribed standard, IAS 21.
Students dealing with financial reporting papers will often come across issues relating to the buying and selling of goods and services to other entities who are located in overseas locations – such transactions will often give rise to translation differences. The objective of IAS 21 ‘The Effects of Changes in Foreign Exchange Rates’ is to prescribe how an entity, who carries on foreign activities will account for the changes in foreign exchange rates.
Functional Currency
The first…
