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It has been said that the failure of businesses over the course of the pandemic has largely been due to the fact that their business models were out of date, and that the pandemic has merely hastened their demise.

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

Acquisitions of businesses can take many forms and can have a fundamental impact of the acquirer’s operations, resources and strategies. These acquisitions are known as mergers or business combinations which should be accounted for using the requirements in IFRS 3 ‘Business Combinations’.

Mergers and acquisitions are becoming more and more common as entities aim to achieve their growth objectives. IFRS 3 ‘Business Combinations’ contains the requirements for these transactions, which are challenging in practice.

Business combinations are infrequent transactions that are unique for each occurrence. IFRS 3 ‘Business Combinations’ contains the requirements and despite being fairly stable in the ten years since its been released, still provides challenges when accounting for these transactions in practice.

The Foundation has acknowledged the need for global sustainability reporting standards and the role it could play in their development. The International Organisation of Securities Commissions (IOSCO) in late February 2021 said there was an urgent need for globally consistent, comparable, and reliable sustainability disclosure standards and it announced its priorities and vision for a Sustainability Standards Board (SSB) which closely align with those set out by the Foundation.

The preparation of financial statements in accordance with International Financial Reporting Standards (‘IFRS’) is challenging. Each year, new Standards and amendments are published by the International Accounting Standards Board (‘IASB’) with the potential to significantly impact the presentation of a complete set of financial statements.

IAS 29 ‘Financial Reporting in Hyperinflationary Economies’ requires the financial statements of any entity whose functional currency is the currency of a hyperinflationary economy to be for changes in the general purchasing power of that currency so that the financial information provided is more meaningful.

Granting lease incentives is a common way to encourage a new lessee to sign up to a new lease contract and fill vacant premises. When accounting for lease incentives in accordance with IFRS 16 ‘Leases’ from a lessee perspective, questions may arise in how to identify a lease incentive and when the accounting treatment changes depending on how the lease incentive is granted.

The International Accounting Standards Board (IASB) has issued a collection of narrow scope amendments to IFRS Standards. The collection includes amendments to three Standards as well as Annual Improvements to IFRS Standards, which addresses non non-urgent (but necessary) minor amendments to four standards.

Navigating the changes to International Financial Reporting Standards.

In December 2019 the IASB published an Exposure Draft ‘General Presentation and Disclosures’ which proposes to replace IAS 1 ‘Presentation of Financial Statements’ with a new IFRS and amend several other IFRS Standards.

In response to the ongoing reform of interest rate benchmarks around the world the IASB have released these latest amendments.

Under IFRS 16 ‘Leases’, discount rates are used to determine the present value of the lease payments used to measure a lessee’s lease liability.

See the latest IFRS News for quarter 2 2018 and see the upcoming implementation dates for frameworks and standards.

Read the latest from Grant Thornton on IFRS and the revised ‘Conceptual Framework for Financial Reporting’.