IFRS 16, an International Financial Reporting Standard (IFRS) issued by the International Accounting Standards Board (IASB), deals with lease accounting. It became effective on January 1, 2019, and replaced the previous standard, IAS 17. IFRS 16 introduces significant changes to how companies report leasing transactions on their financial statements, primarily aimed at increasing transparency and […]
Accounting is a vital function in every business, serving as the backbone for tracking financial activities and ensuring compliance with financial regulations. For US businesses, understanding the accounting process is essential for maintaining accurate records, evaluating financial health, and making informed decisions. This blog will walk you through the accounting cycle, a systematic method used […]
Accounting plays a crucial role in every business, providing a structured way to track financial health and ensure compliance with legal requirements. The UK’s accounting process is no different, governed by distinct regulations and standards. In this comprehensive guide, we’ll walk you through each step of the UK accounting process, from understanding the relevant standards […]
Understanding the intricacies of international accounting is crucial for businesses operating across borders, especially when dealing with the unique accounting standards of different countries. The United States and the United Kingdom, while sharing some accounting principles, follow different sets of rules that can significantly impact financial reporting and business operations. Here, we dive into the […]
The International Financial Reporting Standard (IFRS) 16, which took effect in January 2019, has brought a transformative approach to how companies account for leases. This new standard has several key objectives, which include: In essence, IFRS 16 mandates that lessees (the party using a leased asset) must recognize most leases on their balance sheets. This […]
Published: December 8, 2023 As we approach the dawn of a new accounting era, the International Financial Reporting Standards (IFRS) have undergone significant updates, ushering in changes that will reshape financial reporting for entities across the globe. Effective from 1 January 2024, these amendments aim to enhance transparency, address concerns raised by investors, and refine […]
Financial statement considerations in adopting new and revised pronouncements Where new and revised pronouncements are applied for the first time, there can be consequential impacts on annual financial statements, including: Whilst disclosures associated with changes in accounting policies resulting from the initial application of new and revised pronouncements are less in interim financial reports under IAS […]
“What’s the fuss over IFRS?” Providing a brief overview of the transition to adoption of IFRS and convergence with US GAAP. While we realize that IFRS will become a future reality, the question lingered regarding the differences between the two accounting standards. I thought it would be useful to assess the areas of major differences. […]