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IFRS Alerts covering the latest changes published by the International Accounting Standards Board (IASB).

The preparation of financial statements in accordance with International Financial Reporting Standards (IFRS) is challenging. Each year, new Standards and amendments are published by the International Accounting Standards Board (IASB). These changes have the potential to significantly impact the presentation of a complete set of financial statements, and 2024 is no different.

According to the World Economic Outlook (WEO) report issued by the International Monetary Fund (IMF) in October 2023, and based on economic conditions that currently exist in Ghana, Sierra Leone and Haiti, these countries are now considered to be hyperinflationary from 31 December 2023. Therefore, reporting entities in those countries will be required to apply IAS 29 'Financial Reporting in Hyperinflationary Economies'. Consequently, any entities with interim or annual financial reporting requirements at 31 December 2023 or thereafter should reflect IAS 29 in their IFRS financial statements.

The preparation of financial statements in accordance with International Financial Reporting Standards (IFRS) is challenging. Each year, new Standards and amendments are published by the International Accounting Standards Board (IASB) with the potential to significantly impact the presentation of a complete set of financial statements and 2023 is no different.

The preparation of financial statements in accordance with International Financial Reporting Standards (IFRS) is challenging.

Understanding how an entity is performing from management’s point of view during an interim reporting period can be just as important as the annual disclosures that are required when following IFRS 8 ‘Operating Segments’ – which sets out the minimum disclosure requirements for annual reporting periods.

Segmental information is a way of increasing transparency in financial statements prepared for investors and creditors, especially for areas of the business that are significant and drive the entity’s overall business strategy. IFRS 8 ‘Operating Segments’ requires this information that is provided to management to be disclosed in the annual financial statements, so that investors and other users of entities’ financial statements can review an entity’s operations from the same perspective.

The preparation of financial statements in accordance with International Financial Reporting Standards (IFRS) is challenging.

Segment reporting is intended to give information to investors and stakeholders regarding the financial results and financial position of the entity that are used by the entity’s chief operating decision maker (CODM). Given this, IFRS 8 ‘Operating Segments’ provides the guidance to preparers on this area.

Generally, financial information is required to be reported on the same basis as is used internally for evaluating operating segment performance and deciding how to allocate resources to operating segments. IFRS 8 ‘Operating Segments’ sets out these requirements and asks for reconciliations of total reportable segment revenues, total profit or loss, total assets, liabilities and other amounts disclosed for reportable segments to corresponding amounts in the entity’s financial statements.

High quality management accounts enable management to monitor performance, allocate resources and devise business and market strategies. Therefore, they are particularly important for entities that operate in a variety of classes of business, geographical locations, regulatory or economic environments or markets.

Each year, new Standards and amendments are published by the International Accounting Standards Board (IASB) with the potential to significantly impact the presentation of a complete set of financial statements.

A common question in board rooms around the world is how well are large and complex companies responding to market and regulatory expectations on the consequences of climate change in their audited financial statements?

Acquisitions of businesses can take many forms and can have a fundamental impact on the acquirer’s operations, resources and strategies.

We wish you a Merry Christmas and a Happy New Year!

The preparation of financial statements in accordance with International Financial Reporting Standards (IFRS) is challenging.