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

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

IAS 21 Changes in foreign exchange rates

Overview Many entities do business with overseas suppliers or customers, or have overseas operations. This gives rise to two main accounting issues: Some transactions (for example, those with overseas suppliers or customers) might be denominated in foreign currencies. These transactions are expressed in the entity’s own currency (‘functional currency’) for financial reporting purposes. A parent … Continue reading IAS 21 Changes in foreign exchange rates

IAS 22 Earnings per share

Overview of IAS 22 The objective of IAS 33 is to prescribe principles for determining and presenting earnings per share (EPS) amounts to improve performance comparisons between different entities in the same reporting period and between different reporting periods for the same entity. [IAS 33.1] IAS 33 applies to entities whose securities are publicly traded … Continue reading IAS 22 Earnings per share