Month: April 2021

Objective of statements of cash flows   IAS 7 Statement of Cash Flows provides guidance on the preparation of a statement of cash flows. The objective of a statement of cash flows is to provide information on an entity’s changes Read More …

Definition of a group reorganisation   A group reorganisation (or restructuring) is any of the following:   the transfer of shares in a subsidiary from one group entity to another   the addition of a new parent entity to a Read More …

Key definitions   Foreign currency transactions in the individual financial statements of a company were covered earlier in this text.   Below is a reminder of some key definitions:   The functional currency is the currency of the ‘primary economic Read More …

Acquisition of a subsidiary   There are two acquisition scenarios that need to be considered in more detail:   mid-year acquisitions   step acquisitions.   Mid-year acquisitions   A parent entity consolidates a subsidiary from the date that it achieves Read More …

Complex group structures   Complex group structures exist where a subsidiary of a parent entity owns a shareholding in another entity which makes that other entity also a subsidiary of the parent entity.   Complex structures can be classified under Read More …

Overview of interests in other entities   The following diagram presents an overview of the varying types of interests in other entities, together with identification of applicable reporting standards. The standards referred to in the diagram above cover a range Read More …

1 Introduction   What is meant by a ‘current issue’?   In relation to ‘current issues’, the ACCA P2 study guide says that candidates need to be able to discuss:   recent IFRS Standards   practice and regulatory issues   Read More …

  Non-financial reporting   Non-financial information, in the form of additional information provided alongside the financial information in the annual report, has become more important in recent years.   While financial information remains important, stakeholders are interested in other aspects Read More …

Not-for-profit entities     Reporting not-for-profit entities   A not-for-profit entity is one that does not carry on its activities for the purposes of profit or gain to particular persons and does not distribute its profits or assets to particular Read More …

1 IFRS 1: First time adoption of International Financial Reporting Standards     Adoption of International Financial Reporting Standards   Although not as significant as they once were, differences remain between IFRS Standards and national standards. Therefore, there is an Read More …