The IASB feels that the best way to classify the measurement bases is using historical cost or current value. Cashflows are often used to estimate the measure of an asset or a liability, but the ED does not identify cashflow techniques as a separate category of measurement. The description o...
When a company holds investments such as shares, bonds, or derivatives on its balance sheet, it must account for them and their changes in value. Both GAAP and IFRS require investments to be segregated into discrete categories based on asset type. The main differences come in recognizing income...
Due to the novelty of corporate governance rules in emerging economies, which could impact management policies and readability of the statement by the chai
There are certain conditions that businesses must meet as per IFRS requirements. According to the IFRS, these requirements fall into three different categories that are needed for contracts to exist. The table below highlights each one:4 Performance indicates the seller has fulfilled a majority of t...
To assess the impact of these reclassifications, we determine the types of firms affected by this allowance and the types of reclassifications in the operating, investing, and financing categories of the cash flow statement. We find that, consistent with the SEC’s concerns, firms overstated net...
are “outsider claims”or economic obligationspayable to outsiders.Owners’ equity represents the“insider claims” of a business.The Accounting EquationFor a corporation, shareholders’ equityis divided into two main categories.Contributed capitalRetained earningsAssets = Liabilities + Shareholders’ equity...
transition or ESG collection, i.e. excluding significantly harmful investments or activities, investing in assets with better environmental or social criteria or applying various sustainability features. Financial products that do not fall into one of these categories should be identified as unclassified ...
the IFRS mandate does not significantly reduce average underpricing. This conclusion holds for institutional quality measures: none of the six tested measures are significantly related to underpricing. Given these findings, the joint impact of institutional quality and the IFRS mandate on IPO underpricing...
Main reasons for the change in the regional distribution of NPLs are as follows: First, the risk categories of certain large customers in the Pearl River Delta and West Strait were downgraded to non-performing, resulting an increase in NPLs in the region. Second, efforts on NPL resolution ...
Other Categories The OCI measure was also quite helpful during thefinancial crisis of 2007 to 2009and through its recovery. For instance, coming out of theGreat Recession, the banking giant Bank of America reported a $1.4 billion profit on its standard income statement, but a loss of $3.9 bi...