What is a Bank Reconciliation Statement?
Bank Reconciliation Statement A bank reconciliation statement is a document that reconciles the balances of a bank’s checking account with the bank’s reported financial statements. A bank reconciliation statement is a document that lists all of the transactions in an account, both deposits and withdrawals, and reconciles the account against the bank’s records. This is […]
IFRS 17 – Insurance Contracts | Overview | Scope | Objectives
IFRS 17 provides guidance on accounting for insurance contracts. It is set to replace IFRS 4, which currently governs accounting for insurance contracts. The purpose of IFRS 17 is to provide investors and analysts with a more transparent and consistent view of insurance companies’ financial performance and risk exposure. IFRS 17 requires insurance companies to […]
IFRS 16 – Leases (Recognition, Measurement and Disclosure)
The International Accounting Standards Board introduced IFRS 16 in 2019, which marked an enormous change in the accounting treatment of leases. Earlier, a company was permitted to classify leases into two types, viz., a finance lease and an operating lease. And if the lease was of an operating nature, then the subject of the lease […]
IFRS 15 – Revenue from Contracts with Customers
IFRS 15 outlines how and when an IFRS reporter would recognise revenue and requires such companies to make more meaningful, relevant disclosures to readers of financial statements. The standard offers a single, five-step model based on a set of guiding principles for all client contracts. Objective The objective of IFRS 15 is to set the […]
IFRS 14 – Regulatory Deferral Accounts
Overview IFRS 14 Regulatory Deferral Accounts permits an entity that is a first-time adopter of International Financial Reporting Standards to continue to account, with some limited changes, for ‘regulatory deferral account balances per its previous GAAP, both on initial adoption of IFRS and in subsequent financial statements. Regulatory deferral account balances, and movements in them, […]
IFRS 13- Fair Value Measurement
IFRS 13 – Fair Value Measurement is a standard developed by the IAS that provides guidance on how to measure fair value in financial reporting. The standard aims to enhance the consistency and comparability of financial statements by setting out a single definition of fair value and providing a framework for measuring it. Fair value […]
IFRS 12-Disclosure of Interests in Other Entities
Overview IFRS 12 Disclosure of Interests in Other Entities is a consolidated disclosure standard requiring a wide range of disclosures about an entity’s interests in subsidiaries, joint arrangements, associates and unconsolidated ‘structured entities’. Objective and scope The objective of IFRS 12 is to require the disclosure of information that enables users of financial statements to evaluate: [IFRS […]
IFRS 11 – Joint Arrangements | Overview
International Financial Reporting Standard (IFRS) 11 prescribes the accounting treatment of joint arrangements, which occur when two or more entities have control over an economic activity. The standard is meant to ensure that financial reports clearly show the nature of the collaboration and rights and obligations of each entity participating in it. IFRS 11 categorizes […]
IFRS 10 — Consolidated Financial Statements
The International Financial Reporting Standard (IFRS) 10, Consolidated Financial Statements, is the key to facilitating financial statements reflecting the economic events of a set of entities with common control effectively. Developed by the International Accounting Standards Board (IASB), IFRS 10 gives rise to one control-based framework for assessing when an entity has to consolidate its […]
IFRS 9 Financial Instruments | Meaning and Overview
IFRS 9 is a set of international financial reporting standards issued by the International Accounting Standards Board (IASB) that outlines the rules for accounting and reporting of financial instruments. It was first introduced in 2014 and became effective for annual reporting periods beginning on or after January 1, 2018. Reasons to Issue IFRS-9 IFRS 9 […]