Writing an Annual Report: Common Sections

Vision/mission statements. Here, companies outline the goals and values of their business. Given that these statements are often generic and vague in nature, the value of such information is rarely important. Auditor's report. This is a letter containing your auditor's comments on the financial accuracy of the statements. Any changes in accounting policy will be … Continue reading Writing an Annual Report: Common Sections

IAS 1 Presentation of Financial Statements

Overview The objective of financial statements is to provide information that is useful in making economic decisions. IAS 1’s objective is to ensure comparability of presentation of that information with the entity’s financial statements of previous periods and with the financial statements of other entities.The objective of financial statements is to provide information that is … Continue reading IAS 1 Presentation of Financial Statements

Business Plan Template

Front page Table of contents Executive summary Business fundamentals What is the product Who is the customer Who is the owner What is the industry What is the future Company description Soft aspects Mission statement Company goals Business philosophy Target market (brief) Industry Overview Projected growth Projected change Company strengths Personal expertise and skills Legal … Continue reading Business Plan Template

Annual Report Template

Front Cover Table of Conents Message to shareholders Management's responsibility for financial reporting MD&A Business overview Who we are How we are organized (key business lines) How we sell our products Intellectual property, if applicable Key government regulation Growth strategy Increasing market penetration Future markets Securing additional capital Improving products Retaining and engaging staff Operating … Continue reading Annual Report Template

IFRS 8 Segment reporting

Overview of IFRS 8 Segment guidance requires an entity to disclose information that enables users of the financial statements to evaluate the nature and financial effects of the business activities and the economic environments through the eyes of management (‘management approach’). Although many entities manage their business using some level of ‘segmented’ data, the disclosure … Continue reading IFRS 8 Segment reporting

IAS 8 Accounting policies, estimates, and errors

Overview An entity follows the accounting policies required by IFRS that are relevant to the transactions, other events and conditions of the entity. Sometimes, standards offer a policy choice; there are other situations where no guidance is given by IFRSs. In these situations, management should develop and apply appropriate accounting policies. Management uses judgement in … Continue reading IAS 8 Accounting policies, estimates, and errors

IAS 10 Events After the Reporting Period

  Overview IAS 10 Events After The Reporting Period contains requirements for when events after the end of the reporting period should be adjusted in the financial statements. Adjusting events are those providing evidence of conditions existing at the end of the reporting period, whereas non-adjusting events are indicative of conditions arising after the reporting period (the … Continue reading IAS 10 Events After the Reporting Period

IAS 11 Construction contracts

Overview of IAS 11 A construction contract (contract costs) is a contract specifically negotiated for the construction of an asset, or combination of assets, including contracts for the rendering of services directly related to the construction of the asset (such as project managers’ and architects’ services). Such contracts are typically fixed-price or cost-plus contracts. Revenue … Continue reading IAS 11 Construction contracts

IAS 12 Taxation

Overview of IAS 12 IAS 12 deals with taxes on income, comprising current tax and deferred tax. Current tax expense for a period is based on the taxable and deductible amounts that will be shown on the tax return for the current year. An entity recognises a liability in the balance sheet in respect of … Continue reading IAS 12 Taxation

IFRS 13 Fair value

IFRS 13, ‘Fair value management’, provides a common framework for measuring fair value where required or permitted by another IFRS. IFRS 13 defines fair value as ‘The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date’. [IFRS 13 … Continue reading IFRS 13 Fair value

IAS 17 Leases

Overview IAS 17 sets out the required accounting treatments and disclosures for finance and operating leases by both lessors and lessees, except where IAS 40 is applied to investment property held by a lessee. Definitions A finance lease – a lease that transfers substantially all the risks and reward of ownership. An operating lease – … Continue reading IAS 17 Leases

IAS 18 Revenue contracts

Overview of IAS 18 Revenue contracts Revenue arising from the sale of goods is recognised when: an entity transfers the significant risks and rewards of ownership and gives up managerial involvement usually associated with ownership or control; it is probable that economic benefits will flow to the entity; and the amount of revenue and costs … Continue reading IAS 18 Revenue contracts

IAS 19 Employee Benefits

Overview The accounting for employee benefits, and for pensions in particular, is complex. The liabilities in defined benefit pension plans are frequently material. They are long-term and difficult to measure, and this gives rise to difficulty in measuring the cost attributable to each year. Employee benefits are all forms of consideration given or promised by … Continue reading IAS 19 Employee Benefits