Financial Reporting - Latest Articles
In this article, Steve Collings discusses the method used to…
Provisions, contingent liabilities and contingent assets can often cause confusion…
In this article, Steve Collings provides a summary of the…
Financial Reporting - Previous Articles
In this article, Steve Collings looks at how an entity should account for non-current assets which have been classified as held for sale.
The objective of IFRS 5 is to specify how assets that both qualify for, and are treated as, ‘held for sale’ should be presented and disclosed within a set of financial statements. The standard also deals with discontinued operations.
A non-current asset (or disposal group) that is held for sale must be up for sale in its present condition and the sale must be highly probable. In order for the sale to be…
Steve Collings offers some more practical solutions to frequently asked technical queries as some areas of financial reporting are particularly complex and in many cases accountants will revert back to official standards or publications which may result in complexities becoming even more confusing.
Q: I have a building which is carried in the balance sheet using the revaluation model. Do I have to revalue this building every year?
A: FRS 15 requires valuations to be kept up-to-date as out-of-date valuations are meaningless where the revaluation model is used. FRS 15 does not require valuations to…
Some areas of financial reporting are particularly complex and in many cases accountants will revert back to official standards or publications which may result in complexities becoming even more confusing. In this, and subsequent articles, I will look at a couple of the most commonly asked questions concerning areas of financial reporting which pose difficulties when dealing with the situation(s) in real life practice.
Can a company who changed from the ‘depreciated historic cost’ model of accounting for fixed assets to the ‘revaluation model’ switch back to depreciated historic cost?
FRS 15 ‘Tangible Fixed Assets’ allows…
In this article, Steve Collings outlines the requirements of IFRS 2 ‘Share-Based Payment’ and considers the implications on the financial statements of an entity entering into such a transactions.
The objective of IFRS 2 is to outline the financial reporting requirements that an entity who engages in share-based payment transactions should comply with in their financial statements. It outlines the requirements an entity is to reflect in both its profit and loss account (statement of comprehensive income) and its balance sheet (statement of financial position) that the effects of share-based payments has on the entity’s financial statements.
IFRS…
In the UK, the Companies Act 2006 contains provisions which govern the requirements companies are required to comply with in terms of their accounts and bookkeeping.
This article looks at some of the main provisions and is relevant to students studying F4 ‘Corporate and Business Law’. The next article concerning the Companies Act 2006 will look at the various disclosure requirements.
The Companies Act 2006 repealed and restated most of the statutory provisions regarding accounts and audit for accounting periods commencing on or after 6 April 2008, notably:
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