Environmental, social, and governance (ESG) issues are no longer fringe concerns. They are central to a company’s long-term viability and a critical lens through which stakeholders assess corporate performance. To address this growing need for transparency, companies are increasingly adopting …
IFRS says that the incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow the funds to obtain: An asset of a similar value to the underlying asset, Over a similar term, With similar security, In a similar economic …
Is the intercompany financing in the scope of IFRS 9 or IAS 27? Intercompany financings that, in substance, form part of an entity’s ‘investment in a subsidiary’ are not in IFRS 9’s scope. Rather, IAS 27 applies to such investments. …
The liabilities are classified as either current or non-current based on the rights existing at the end of the reporting period. Liabilities are classified as non-current if the entity has a substantive right to defer settlement for at least 12 …
A settlement discount is where a business offers another business a discount when an invoice is paid early. This is usually a percentage discount if an invoice is paid within a specified number of days, for example, a 5% discount …
All that glitters isn’t gold. In the post-covid era, the preservation of wealth through investments in gold shall increase. As financial analysts and accountants, it is important to understand how investment in gold be accounted for under IFRS. As far …
Treatment of Dividend Interim dividends announced by the directors but unpaid at the balance sheet date Interim dividends announced by the directors but unpaid at the balance sheet date are a liability at that balance sheet date where, and only …
Warranty sometimes lures us into buying a product or service. Warranty for two, five, or ten years on several products and services ranging from a backpack to an electronic gadget. Warranties assure of quality in a sense that the said …
Gift certificates typically represent a non-refundable pre-payment to an entity that gives the customer a right to receive goods or services in the future and obliges the entity to stand ready to transfer the goods or services. The core principle …
As we know, there has been an amendment to IFRS 3 regarding what we consider as the acquisition of the business and what is meant by the addition of an asset. In the article below we will discuss what has …