![]() First, it creates doubts and worries in the buyer’s mind: “How can we trust the accuracy of the numbers if different sources give different results?” This can be a dealbreaker or can taper confidence in the team’s ability to execute. I have worked on several financial due diligence projects for M&A deals where data provenance was a problem. When something falls out of line between all these sources, it very quickly causes critical imbalances in a model. The most common reason is the wide range of data sources used by the company: the sales teams’ tracking software, CapEx files maintained by the CFO, and inventory reporting metrics from the procurement team, to name a few. Whether I’m looking at acquisition opportunities at HoriZen Capital or building best practices models, I often see cash flow statements that don’t reconcile with the balance sheet. Opening IFRS statement of financial positionĮxceptions to the retrospective application of other IFRSsĤ9.To download the example cash flow statement used throughout this post, click here. Part 12: FIRST TIME ADOPTION of INTERNATIONAL ACCOUNTING STANDARDSĤ8. Recognition and measurement of biological assets and agriculture produce Accounting and reporting by retirement benefit plans Measurement of exploration and evaluation assetsĤ6. Exploration for and evaluation of mineral resources Recognition and measurement of financial instrumentsĬlassification and measurement of financial assetsįinancial analysis of Ryanair and EasyJetĬhanges in ordinary share capital when computing basic EPSĤ5. Capital instruments, reduction of capital and distributable profits Definition of a financial instrumentįinancial liabilities and equity instrumentsģ9. Financial reporting in hyperinflationary economiesĭefinition of a hyperinflationary economyģ8. Use of a presentation currency other than an entity’s functional currencyīorrowing costs incurred in respect of qualifying assetsģ7. Recording transactions in an entity’s functional currency Identifying an entity’s functional currency The effects of changes in foreign exchange rates Key definitions and classification of leasesĬategories of revenue: sale of goods rendering of services interest, royalties and dividendsĪccounting treatment of government grantsģ4. Reporting periods and accounting policiesĪcquisition of a subsidiary during the periodĭisposal of a subsidiary during the period Goodwill arising on the acquisition of shares in an associate disposals not resulting in a loss of control ![]() purchase of additional equity shares after control is attained business combination achieved in stages Separate financial statements of a parent Recognition and measurement of assets and liabilities acquired Subsidiary acquired during the reporting period Consolidated statement of comprehensive income Consolidated statement of financial positionĢ4. Part 7: CONSOLIDATED FINANCIAL STATEMENTSĢ3. Provisions, contingent liabilities and contingent assetsĬontingent liabilities and contingent assets Share-based payment transactions with a cash alternativeĢ1. Non-current assets held for sale and discontinued operations Recognition in statement of financial positionġ7. Recognition of P, P & E in financial statements Accounting policies, accounting estimates and errors Accounting policiesįactors that influence management’s choice of accounting policies Presentation of a statement of cash flowsĩ. Presentation of financial statements Objective of IAS 1 Part 4: PRESENTATION OF FINANCIAL STATEMENTSħ. Alternative income models Historical cost accounting Part 2: A THEORETICAL FRAMEWORK FOR ACCOUNTINGģ. It is also appropriate for students studying for professional exams on IFRS.Įconomic consequences of financial statements This text has been written primarily for intermediate and advanced students of Financial Reporting studying an undergraduate or masters level programme. ![]() By clearly explaining the theory behind each standard and then illustrating its application in worked examples, this text makes a technical subject accessible and easy to understand. Covering both IFRS and IAS, this book adopts a user-friendly structure. International Financial Reporting provides a current and comprehensive guide to international accounting standards. Distributed by the Trans-Atlantic Publications
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