The predecessor of the International Accounting Standards Board (the IASB) was the International Accounting Standards Committee (IASC). IASC’s early standards typically contained several options that allowed different companies to choose freely between different accounting transactions for similar transactions. E32 Comparability of Financial Statements On 1 January 1989, IASC published exposure draft E32 Comparability of Financial… Continue reading When IASC removed many options
Tag: Foreign currency
FX on eliminated intragroup balances
The IFRS Interpretations Committee issued in September 2025 a Tentative Agenda Decision Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset). The Tentative Agenda Decision is open for comment until 25 November 2025. It is available at IFRS – Tentative Agenda Decision and comment letters: Classification of a Foreign Exchange Difference… Continue reading FX on eliminated intragroup balances
We call too many things ‘intangible assets’
The definition of an intangible asset in IAS 38 Intangible Assets is too broad, in my view. The assets it captures do not form a single natural class of assets that all have a common feature. As a result, IAS 38 may not provide the most useful information about every type of asset captured by… Continue reading We call too many things ‘intangible assets’
Liability or equity?
I have submitted a comment letter to the IASB on 2 aspects of its Exposure Draft Financial Instruments with Characteristics of Equity, available at IFRS – Exposure Draft and comment letters: Financial Instruments with Characteristics of Equity—Proposed amendments to IAS 32, IFRS 7 and IAS 1 The comment deadline is 26 March 2024. The text… Continue reading Liability or equity?
IASC’s project on discounting
The International Accounting Standards Committee (IASC) added to its work plan a project on discounting (or present value) in 1998. IASC was the predecessor of the International Accounting Standards Board (the IASB). When the IASB came into being in 2001 and took over from IASC, the IASB decided not to continue with the project. In… Continue reading IASC’s project on discounting
Emission trading schemes: a fresh look
The most difficult question in accounting for emission trading schemes is deciding what to do with emission trading certificates received free of charge. Does the recipient have a liability on day 1? If not, should it recognise an immediate gain? Previous answers to this question have been unconvincing because they did not reflect the nature… Continue reading Emission trading schemes: a fresh look