IFRS 17 - Insurance Contracts was issued by the International Accounting Standards Board (IASB) on 18 May 2017 and shall be applicable with effective date of annual periods beginning on or after 1 January 2021. ALL ABOUT IFRS 17 IFRS 17 is the first IFRS Standard for insurance contracts. IFRS 17 will replace IFRS 4 that was on Insurance Contracts, introduced in 2004. As an interim [...]

2018-02-01T01:20:48+00:00 February 1st, 2018|Categories: Compliance|Tags: |0 Comments

IASB makes amendment in IFRS 9 and IAS 28

International Financial Reporting Standards (IFRS): Prepayment Features with Negative Compensation The International Accounting Standards Board (IASB) has amended International Financial Reporting Standards (IFRS): Prepayment Features with Negative Compensation - Amendments to IFRS 9; and Long-term Interests in Associates and Joint Ventures - Amendments to IAS 28. These documents will now amend IFRS 9, Financial Instruments, and International Accounting Standards (IAS) 28, Investments in Associates and Joint [...]

2017-10-30T00:57:59+00:00 October 30th, 2017|Categories: Accounting|Tags: |0 Comments

IFRS Practice Statement: Application of Materiality to Financial Statements

Exposure Draft ED/2015/8 October 2015 IFRS Practice Statement: Application of Materiality to Financial Statements Introduction IASB introduced an exposure draft of the IFRS ‘Practice Statement Application of Materiality to Financial Statements’ in October 2015. IASB invited comments on this draft by February 2016. Different organisations responded including Accounting bodies, corporate bodies, practicing firms, solicitors etc. In this report, four respondents have been chosen for further [...]

2017-10-23T11:47:14+00:00 July 17th, 2017|Categories: Accounting|Tags: |0 Comments

IFRS 2 – Share based Payment: A brief analysis of the basic concepts

Overview The objective of IFRS 2 is to specify the financial reporting by an entity when it undertakes a share-based payment transaction. In particular, it requires an entity to reflect in its profit or loss and financial position the effects of share-based payment transactions, including expenses associated with transactions in which share options are granted to employees. Prior to the issuance of IFRS 2, there [...]

2017-10-30T11:20:42+00:00 December 5th, 2016|Categories: Accounting|Tags: |0 Comments

IFRS 15 Revenue from Contracts with Customers

IFRS 15 Revenue from Contracts with Customers IFRS 15 Revenue from contracts with Customers was issued on 28th May 2014.From 1st January 2017 this IFRS shall be effective however; an early adoption is also permitted. Given below is a brief analysis of IFRS 15, its application and its meaning in accounting circles especially in revenue recognition process of contractual obligations. Objective The objective of IFRS 15 [...]

2016-10-12T23:45:43+00:00 May 27th, 2016|Categories: Accounting|Tags: |0 Comments

Lease Accounting standard is finally released; FASB

The FASB issued its long-awaited lease accounting standard, one of the major convergence projects on which it has collaborated for a decade with the IASB. The accounting standards update aims to improve financial reporting about leasing transactions and will affect all companies and other organisations that lease assets, in many cases putting their operating leases on the balance sheet for the first time. While the standard [...]

2016-07-23T13:30:38+00:00 March 4th, 2016|Categories: Accounting|Tags: , , , |0 Comments

IFRS 3, Business Combinations under common control, options for entities

I have been approached by many Accountants related to the interpretation of IFRS 3 that is relevant to business combinations accounting. A big question mark with the applicability of IFRS 3 is related to those business combinations which have common control because common control combinations are outside the scope of IFRS 3. A business combination is a “common control combination” if the combining entities are ultimately [...]

2016-07-22T04:01:59+00:00 February 11th, 2016|Categories: Accounting|Tags: |0 Comments

IFRS amendments require disclosures about debt financing liabilities

Amendments to IFRS issued Friday require companies to provide information about changes in their financing liabilities and were designed to answer requests from investors for information about changes in a company’s debt. The International Accounting Standards Board (IASB) issued the changes to IAS 7, Statement of Cash Flows, which were created to help investors evaluate changes in liabilities arising from financing activities, including changes from cash [...]

2016-08-15T01:55:03+00:00 February 1st, 2016|Categories: Assurance|Tags: |0 Comments

IFRS 9 is radical enough

International Accounting Standards Board chairman Hans Hoogervorst has rejected accusations that the approach adopted in IFRS 9 to loan loss provisioning does not go far enough He thinks that requiring banks to recognise full expected lifetime losses on all loans as soon as they have been made, as the critics would have liked to have seen, “is not a good way to make banks safer”. At [...]

2016-10-12T23:46:04+00:00 September 25th, 2015|Categories: Compliance|Tags: , |0 Comments