Gain a deeper understanding of financial reporting under IFRS through clear explanations and extensive practical examples. IFRS can be a complex topic, and books on the subject often tackle its intricacies through dense explanation across thousands of pages. Others seek to provide an overview of IFRS and these, while useful for the general reader, lack the depth required by practitioners and students. IFRS Essentials strikes a balance between the two extremes, offering concise interpretation of the crucial facts supported by a wealth of examples. Problems and their solutions are demonstrated in a manner which is short, straightforward and simple to understand, avoiding complex language; jargon and redundant detail. This book is suitable for students and lecturers at universities and other educational institutions, auditing and accounting trainees, and employees in the area of accounting and auditing who seek to develop their practical skills and deepen their knowledge of IFRS.
Autorentext
Dr. Dieter Christian is a lecturer at the Vienna University of Economics and Business, several other Austrian universities and various private seminar companies. He is an author in the area of IFRS and Austrian GAAP. He was formerly a Senior Manager and head of the department for IFRS and Austrian GAAP at BDO Austria and also worked in the IFRS department for PricewaterhouseCoopers in Austria. He has a Doctorate in Business Administration and an MBA from Vienna University of Economics and Business. He is a Member of the IFRS working group of the Austrian Financial Reporting and Auditing Committee (AFRAC).
Dr. Norbert Lüdenbach is a tax advisor and chartered accountant, and is Head of the IFRS Department of BDO Germany. He is an author of commentaries on IFRS and German GAAP as well as being a lecturer at the University of Freiburg (Germany). He is also the publisher of a practice-oriented German IFRS journal which is published on a monthly basis.
Inhalt
Preface xvii
Abbreviations xix
The Conceptual Framework for Financial Reporting 1
1 Introduction 1
2 The Objective of General Purpose Financial Reporting 1
3 Going Concern 2
4 Qualitative Characteristics of Useful Financial Information 2
4.1 Introduction 2
4.2 Fundamental Qualitative Characteristics 2
4.2.1 Relevance 3
4.2.2 FaithfulRepresentation 3
4.3 Enhancing Qualitative Characteristics 4
4.3.1 Comparability 5
4.3.2 Verifiability 5
4.3.3 Timeliness 5
4.3.4 Understandability 5
5 The Cost Constraint on Useful Financial Reporting 5
6 The Elements of Financial Statements 6
6.1 Definitions 6
6.2 Recognition 6
6.3 Measurement 7
7 Exampleswith Solutions 7
IAS 1 Presentation of Financial Statements 11
1 Introduction and Scope 11
2 Going Concern 11
3 Fair Presentation of the Financial Statements and Compliance with IFRSs 11
4 General Principles Relating to Presentation 12
4.1 Materiality and Aggregation 12
4.2 Offsetting 12
4.3 Frequency of Reporting 12
4.4 Comparative Information 12
4.5 Consistency of Presentation 13
5 Components of the Financial Statements 13
6 Structure and Content of the Components of the Financial Statements 13
6.1 Statement of Financial Position (Balance Sheet) 13
6.2 Statement of Comprehensive Income and Separate Income Statement 14
6.2.1 Profit or Loss, Other Comprehensive Income and How They Interrelate 14
6.2.2 Preparation of the Statement(s) 16
6.3 Statement of Changes in Equity 19
7 Exampleswith Solutions 20
7.1 Examples that can be Solved Without the Knowledge of Other Chapters of theBook 21
7.2 Examples that Require Knowledge of Other Sections of the Book 25
IAS 2 Inventories 33
1 Scope 33
2 Measurement 33
2.1 Measurement at Recognition 33
2.2 Measurement after Recognition 34
3 Presentation and Derecognition 35
4 Exampleswith Solutions 35
IAS 7 Statement ofCash Flows 43
1 Introduction 43
2 Preparation of the Statement of Cash Flows 44
2.1 Operating Activities 44
2.2 Investing and Financing Activities 44
3 Special Topics 45
3.1 Interest and Dividends 45
3.2 Income Taxes 45
4 Consolidated Statements ofCash Flows 45
4.1 Introduction 45
4.2 Acquisitions and Disposals of Subsidiaries 46
4.3 Associates 46
5 Exampleswith Solutions 46
IAS 8 Accounting Policies, Changes in Accounting Estimates, and Errors 55
1 Introduction 55
2 Accounting Policies 55
2.1 Selection and Application of Accounting Policies 55
2.2 The Principle ofConsistency 56
2.3 When an Accounting Policy Has to be Changed 57
2.4 Consequences of a Change in Accounting Policy 57
3 Changes in Accounting Estimates 57
3.1 Introduction 57
3.2 Accounting Treatment 58
4 Correction of Prior Period Errors 58
5 Exampleswith Solutions 59
IAS 10 Events after the Reporting Period 71
1 Overview 71
2 Exampleswith Solutions 72
IAS 11 Construction Contracts 75
1 Introduction 75
2 Contract Revenue 75
3 ContractCosts 76
4 Percentage of Completion Method 76
4.1 Introduction 76
4.2 Reliable Estimate of the Outcome of a Contract 77
4.3 Determining the Stage ofCompletion 77
4.4 Recognition of Expected Losses 78
4.5 Uncertainties in Collectibility 78
4.6 Presentation andDisclosure 78
5 When the Outcome of a Contract Cannot be Estimated Reliably 79
6 ...