IAS 23 Borrowing Costs – Capitalisation, Part 2
This blog post explores practical issues and solutions related to IAS 23, focusing on the capitalization of borrowing costs, including the treatment of equity costs, provisions, investment income, hedging, and foreign exchange differences. It provides detailed guidance on handling specific borrowing scenarios and calculating capitalized borrowing costs under IAS 23.
IAS 23 Borrowing Costs – Capitalisation, Part 1
This blog post explains the core principles of IAS 23 Borrowing Costs, detailing how to capitalize borrowing costs for qualifying assets, with an illustrative example of calculating and capitalizing interest expenses during the construction of office buildings.
Accounting for Assets Held for Sale
This blog post explains the framework of IFRS 5 for accounting for non-current assets held for sale, providing a practical example of how to classify, impair, and dispose of these assets, including handling disposal groups and reclassifications if sale plans change.
Calculation of Carrying Amounts for Cash Generating Units
This blog post details the process of calculating carrying amounts for Cash Generating Units (CGUs) under IFRS, including the allocation of directly attributable assets, goodwill, corporate assets, and working capital, ensuring consistency for impairment testing.
Reversal of Impairment for Cash Generating Units
This blog post explains the process of reversing impairment for Cash-Generating Units (CGUs) under IFRS, detailing the conditions and steps for reversal, including the allocation of reversals to eligible assets and the treatment of goodwill, with an illustrative example.
Quantitative Approach to Auditing Forecasts in Going Concern Assessments and Valuations
This blog post discusses the importance of supplementing traditional audit methods with quantitative techniques, such as time series analysis and regression, to enhance the accuracy of going concern assessments and valuations, providing practical examples and insights for auditors.
Accounting for Acquisition of an Asset or a Group of Assets
This blog post outlines the accounting process for asset acquisitions that do not qualify as a business under IFRS 3, detailing the allocation of purchase costs to identifiable assets and liabilities based on fair values, and the application of relevant accounting standards for initial measurement.
Accounting for Goodwill Impairment Under the Partial Goodwill Method
This blog post explains the partial goodwill method for accounting for goodwill impairment, detailing how to allocate impairment losses between recognized and notional goodwill, and how to distribute excess losses to other assets, with a practical example and insights into complexities.
Accounting for Reverse Acquisitions – Handling Non-Controlling Interests, Part 2
This blog post explains how to account for non-controlling interests in reverse acquisitions, detailing the impact of non-participating shareholders on consideration exchanged and equity adjustments, with illustrative examples and financial statement adjustments.
Accounting for Reverse Acquisitions (Share-for-Share Exchanges), Part 1
This blog post explains the accounting principles for reverse acquisitions (share-for-share exchanges), detailing how to account for transactions where the legal acquiree is the accounting acquirer, with examples and considerations for when the acquiree constitutes a business or not.