Technical articles and topic explainers
A library of articles and bite-sized videos to help you improve your understanding of areas you find more difficult or develop a broader insight into the subject.
The financial reporting framework (B)
Profit, loss and other comprehensive income
This article looks at what differentiates profit or loss from other comprehensive income and where items should be presented.
The Conceptual Framework
In March 2018, the International Accounting Standards Board finished its revision of The Framework for Financial Reporting.
Reporting the financial performance of a range of entities (C)
IFRS 9, Financial Instruments, part 1 | part 2
Part 1 of this article covers recognition, measurement of financial assets, measurement of financial liabilities, derecognition and reclassification impairment. Part 2 then goes on to look at derivatives and hedge accounting.
IFRS for SMEs
The principal aim when developing accounting standards for small and medium-sized enterprises (SMEs) is to provide a framework that generates relevant, reliable and useful information which should provide a high quality and understandable set of accounting standards suitable for SMEs.
This article considers the aspects of deferred tax that are relevant to the Financial Reporting exam before moving on to the more complicated situations that may be tested in the Strategic Business Reporting exam.
IFRS 2, Share-based Payment
International Financial Reporting Standard (IFRS®) 2, Share-based Payment, applies when a company receives goods and services in exchange for its own equity instruments or a cash amount based on the price of its own equity instruments.
IFRS 13, Fair Value Measurement
IFRS 13 has required a significant amount of work by entities to simply understand the nature of the principles and concepts involved
Impairment of financial assets
This article considers the International Accounting Standards Board’s proposals of new regulations for the impairment of financial assets.
This article considers the relevance of information provided by different measurement methods and explains the effect that they may have on the financial statements.
This two-part article considers the application of IFRS 15 Revenue from Contracts with Customers.
When does debt seem to be equity?
The difference between debt and equity in an entity’s statement of financial position is not easy to distinguish for preparers of financial statements. Many financial instruments have both features with the result that this can lead to inconsistency of reporting.
Digital tokens are built on a distributed ledger infrastructure often referred to as a blockchain. These tokens can provide various rights. Cryptocurrency is a type of digital token, and is designed as a medium of exchange. Other digital tokens provide rights to use assets or services, or can represent ownership interests.
Topic explainer video: Deferred tax / deferred tax and group scenarios
In this video, expert tutor Tom Clendon examines the topic of 'Deferred tax' (YouTube)
Topic explainer video: Financial instruments
In this video, expert tutor Tom Clendon examines the topic of 'Financial instruments' (YouTube)
Financial statements of groups of entities (D)
Business Combinations – IFRS 3 (Revised)
This article provides an introduction to IFRS® 3 and IAS® 27, including piecemeal acquisitions and disposals.
Impairment of goodwill
This article discusses and shows both ways of measuring goodwill following the acquisition of a subsidiary, and how each measurement of goodwill is subject to an impairment review.
Topic explainer video: Foreign operations and consolidated financial statements
In this video, expert tutor Aleena Kareem examines the topic of 'Foreign operations and consolidated financial statements' (YouTube)
Interpret financial statements for different stakeholders (E)
SBR candidates need to be aware of progress in this area of business reporting as it is a dynamic, fast-paced and developing subject area.
Additional performance measures
For many years, regulators and standard-setters have debated how companies should best inform users about financial performance without misleading them.
Giving investors what they need
This article looks at how reporting capital structure is challenging, but markets are keen for the information.
Using the business model of a company to help analyse its performance
Understanding the business model of an entity is helpful in analysing and communicating the essence of a business, and for predicting the implications of a change in circumstance on a business.
The impact of changes and potential changes in accounting regulation (F)
Climate-related disclosures and investor focus
This area of business reporting is evolving as the investor, and wider stakeholder, demand for both financial and non-financial disclosures increases generally.
Bin the clutter
The phenomenon of financial statement clutter is increasingly under discussion, with initiatives launched to combat it.
IAS 21 – does it need amending?
This article examines the issues raised by IASB research that referred to a KASB study into whether IAS 21 needs amending.
The definition and disclosure of capital
This article is structured in two parts – first, it considers what might be included as the capital of a company and, second, why this distinction is important for the analysis of financial information.
The Sustainable Development Goals
The Sustainable Development Goals (SDGs) are 17 goals tackling major world issues agreed by 193 UN member states to be achieved by 2030. These goals include zero hunger, decent work and economic growth, and reduced inequalities.
Technical articles on multiple syllabus sections
Crowdfunding and impairment of financial instruments
This article addresses the application of accounting principles in contemporary contexts (an exam technique issue) and the impairment of financial instruments (a technical knowledge issue).
Business combinations, share-based payments, and the accounting implications of a global pandemic or natural disaster
This article identifies the issues that candidates should take into account when deciding whether or not an investor has control over an investee. It also reflects upon how share-based payments should be accounted for when they are part of the purchase consideration for a subsidiary in a business combination. Finally, using a global pandemic as context, it provides guidance on the application of IFRS Accounting Standards to contemporary situations.
Asset ceiling test (IAS 19), initial coin offerings, non-GAAP, and non-financial performance measures
This article discusses the asset ceiling test in IAS 19, Employee Benefits, and explains how many IFRS standards and principles might be relevant to an accounting issue for which there is no existing IFRS standard (in this case Initial Coin Offering (ICO)). Finally, it examines some non-financial performance measures that have been reported in practice in a global digital entity.
Onerous lease contracts and impairments, and investor issues
This article addresses the technical matter of onerous lease contracts and their impairment and then considers two types of approach to SBR exam questions: (i) investors issues in SBR questions and (ii) the application of knowledge to SBR question scenarios.