The Blog

Every series, in one place.

Each series takes one line of questions and follows it properly. Start with a series below, or browse every article further down the page.

Unaddressed!

Where the Standard ends!

The questions IFRS leaves open, worked through with the reasoning shown.

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Wide GAAP

Beyond the balance sheet.

Sustainability, ESG and corporate accountability, through a reporting and assurance lens.

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Working-paper illustration: does a fractional interest in a business jet meet the identified-asset test, or is it an executory service contract (IAS 16 and IFRS 16)?

Accounting for fractional aircraft ownership

A fractional share in a business jet can land on the balance sheet as PP&E under IAS 16, or it can turn out to be nothing more than a flying-hours service contract. The difference turns on legal title, substitution rights, and who carries the residual value risk.

Unaddressed!

Sep 25

Working-paper illustration: an upfront non-refundable fee and whether the revenue recognition period extends into renewal periods (IFRS 15)

Upfront non-refundable fees: material rights and the revenue recognition period

How should an entity account for an upfront non-refundable fee when no distinct service is transferred, and when should revenue recognition extend beyond the initial contract term?

Unaddressed!

Sep 23

Working-paper illustration: a land lease with an upfront premium and indefinite renewals, and the enforceable period (IFRS 16)

Perpetual leases of land

How should an entity account for a land lease with an upfront premium and indefinite renewals?

Unaddressed!

Sep 20

Working-paper illustration: an entity guaranteeing its sister company's lease payments to the lessor (IFRS 9 and IFRS 16)

Guarantees of lease payments

How should an entity account for a guarantee of its sister company’s lease payments?

Unaddressed!

Sep 20

Working-paper illustration: a finance sublease ending before the head lease, leaving a residual period (IFRS 16)

Sublease that ends earlier than head lease

How to account for a sublease that is classified as finance lease and ends earlier than head lease? How residual period is determined and accounted at the inception?

Unaddressed!

Sep 13

Working-paper illustration: where a broker quote sits in the Level 1, 2 and 3 fair value hierarchy (IFRS 13)

Fair value hierarchy of investments priced using broker quotes

Under what fair value hierarchy should an investment valued using broker quotes be classified?

Unaddressed!

Sep 13

Working-paper illustration: a contract with a customer option and the material right question (IFRS 15)

Accounting for customer options

How should an entity account for the exercise of a customer option under IFRS 15?

Unaddressed!

Sep 5