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Our ‘Insights into IFRS 3’ series summarises the key areas of the Standard, highlighting aspects that are more difficult to interpret and revisiting the some relevant features that could impact your business. This article sets out the definition and underlying principles of fair value, gives a brief overview of permissible valuation techniques and presents IFRS 3’s specific guidance on fair value measurement.

Our ‘Insights into IFRS 3’ series summarises the key areas of the Standard, highlighting aspects that are more difficult to interpret and revisiting the most relevant features that could impact your business. This article explains the recognition principles set out in IFRS 3.

Our ‘Insights into IFRS 3’ series summarises the key areas of the Standard, highlighting aspects that are more difficult to interpret and revisiting the most relevant features that could impact your business. IFRS 3 has specific guidance on how some items are recognised and measured. This article summarises this specific guidance and provides examples to illustrate its application.

The last number of years have presented unique sets of challenges for businesses, whether that be navigating the aftermath of Brexit, the COVID-19 pandemic, increasing energy costs, or spiralling inflation and the associated cost of living crisis. This has led to business leaders making decisions that would have been unheard of a decade ago, and brought with it an ever-increasing level of uncertainty.

UK audit reform has been brewing for quite some time, on the back of large scale corporate collapses such as Carillion and BHS, which had a devastating impact on their employees, suppliers, and investors.

The Financial Reporting Council (FRC) has clarified that climate-related reporting in financial statements will be a key focus area for the regulator this year.

While the finance department will always be required to provide the core responsibilities of operational finance, including reporting and budgeting, organisations are increasingly looking to finance to play a role that goes beyond the traditional remit of the team.

A significant topic in all boardrooms at the moment is the impact of sustainable strategy on business operations and reporting.

Navigating the changes to International Financial Reporting Standards. A briefing for preparers of IFRS financial statements.

Acquisitions of businesses can take many forms and can have a fundamental impact on the acquirer’s operations, resources and strategies. These acquisitions are sometimes referred to as mergers or business combinations, and the accounting and disclosure requirements are set out in IFRS 3 ‘Business Combinations’.

Acquisitions of businesses can take many forms and can have a fundamental impact of the acquirer’s operations, resources and strategies. These acquisitions are described in many ways depending on the underlying facts and circumstances: mergers, takeovers and business combinations are all terms that are used, and the accounting and disclosure requirements for all of them are set out in IFRS 3 ‘Business Combinations’.

Private operating companies seeking a ‘fast track’ stock exchange listing sometimes arrange to be acquired by a smaller listed company (often described as a ‘shell’ company). This usually involves the listed shell company issuing its shares to the private company shareholders in exchange for their shares in the private operating company. A transaction in which a company with substantial operations (‘operating company’) arranges to be acquired by a listed shell company should be analysed to determine how it should be accounted for under IFRS.

IAS 36 ‘Impairment of Assets’ sets out the requirements entities should follow prior to concluding if an asset should be written down in the financial statements (ie impaired). However, due to the complex nature of the standard, the requirements of IAS 36 can be challenging to apply in practice.

IAS 36 ‘Impairment of Assets’ provides the guidance for carrying out impairment reviews of assets (both tangible and intangible). IAS 36 is not a new Standard, and while many of its requirements have been extensively commented on, IAS 36’s guidance is detailed, prescriptive and complex in some areas, and therefore frequently challenging to apply in practice.

IAS 36 ‘Impairment of Assets’ prescribes the accounting for impairment reviews. While the guidance in this area has not changed in recent years, it still remains a challenging area to apply by preparers of financial statements.

Even before the arrival of Covid-19, forward-thinking charitable organisations had already begun to consider how to diversify their income streams. They were looking to step away from traditional fundraising methods, as the early warning signs indicated a waning public appetite for direct debits and voluntary donations