While the primary financial statements provide a structured overview, the true depth of a company’s financial story lies within the notes. Imagine the notes as hidden passages branching off from the main corridors of the financial labyrinth. Here, companies delve …
In the intricate world of finance, where every decision holds weight and every transaction carries risk, the concept of credit risk adjustments on a portfolio basis stands as a pivotal cornerstone of risk management strategies. In this comprehensive exploration, we …
Environmental, Social, and Governance (ESG) factors are rapidly transforming the business landscape. Investors, customers, and stakeholders are increasingly demanding transparency from companies regarding their impact on the environment, their social responsibility practices, and their commitment to ethical governance. This is …
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 …