The Financial Accounting Standards Board (FASB) has issued a communication around the new or finalized effective dates for most recent standards. Changes allow more time to implement and adopt credit losses, leases, long-duration insurance contracts standards.
The European Financial Reporting Advisory Group (EFRAG) updated its report showing the status of endorsement of each IFRS, including standards, interpretations, and amendments, most recently on 6 November 2019.
The year-end is approaching, which entails financial statements for those companies whose reporting period corresponds to the calendar year. The financial statements involve a number of procedures, referred to as closing operations, including an accurate measurement of assets and liabilities as of the balance sheet date. The accurate measurement of assets and liabilities denominated in a foreign currency also involves their remeasurement as of the balance sheet date. This article aims to summarise basic procedures and draw attention to some remeasurement issues.
On 27 October 2019, the European Securities and Markets Authority (ESMA) announced the priority issues that the assessment of listed companies' 2019 financial statements will focus on.
On 14 November 2019, the Ministry of Finance sent a consultation document on the Accounting Act for inter-resort comment procedure. It is expected that the material could be presented to the government in mid-2020.
The European Financial Reporting Advisory Group (EFRAG) updated its report showing the status of endorsement of each IFRS, including standards, interpretations, and amendments, most recently on 16 October 2019.
Discounts, prompt payment discounts, percentage discounts and bulk discounts are business tools used by both small and large companies in marketing in various industry sectors. We have become used to discounted prices and encounter discounts in stores on a daily basis. We could argue whether the use of a discount relates to the quality of provided products and services and whether it is reflected in customer psychology. However, we will leave this very interesting topic aside for now and focus purely on the accounting perspective, which is not as straightforward after an in-depth analysis as it might appear at first glance. In a figurative sense, even here “discount is not for free”. An accounting professional needs to train his/her judgement in how to recognise the discount correctly, whether it has an impact on valuation, what its tax implications are, etc.
In July 2019 Deloitte issued a new publication called “A Roadmap to Applying the New Revenue Recognition Standard (2019)” which provides guidance on accounting for revenue-related transactions under US GAAP.
On 26 September 2019, the International Accounting Standards Board (IASB) published 'Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)' as a first reaction to the potential effects the IBOR reform could have on financial reporting. The amendments are effective for annual periods beginning on or after 1 January 2020, with earlier application permitted.
