By Jeffrey A. Ford, Grossman Yanak & Ford LLP
ASC Topic 718, Compensation-Stock Compensation directs accounting for share- based compensation awards such as share- option awards, which are classified as either liabilities or equity. Equity-classified awards are initially measured at fair value at the grant date, and are not subsequently remeasured unless they are modified and meet certain requirements. Liability-classified awards are remeasured at the end of each reporting period. If an observable market price is not available for a share- based award, the fair value of the awards is estimated using valuation techniques.
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By Andrea van der Giezen, JAN© Auditors & Business Consultants B.V.
Four major changes for accounting firms were identified in a survey recently conducted in The Netherlands. In this article I would like to review these trends, as it is very likely that these are also applicable to GGI members in other countries.
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By Niranjan Raman, JAA & Associates
This article explores the current accounting guidelines for Intangible Assets (IA), and highlights the need for an overhaul of these guidelines in response to today’s fast paced technology changes.
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By Paolo Motto, Three & Partners
Over the years organisations that benefit from the use of integrated reporting have had a key means of improving corporate communication. According to the International Integrated Reporting Council (IIRC), integrated reporting helps SMEs to better understand and communicate how they create value. This framework identifies six corporate capitals, including financial productive, intellectual, human, social and relational, as well as natural capital. When properly cultivated, these can add value over time.
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By Jeffrey A. Ford, Grossman Yanak & Ford LLP
With the return of inflation at levels not seen for decades, the LIFO (last-in, first-out) method of inventory costing may be a valuable tax-saving opportunity. LIFO is not permitted by IFRS, but it is still acceptable in the US.
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By Hari Patel, Theta Global Advisors
Purchase accounting for acquisitions remains an area of complexity and judgement within IFRS, and the accounting implications on amounts paid or payable to sellers are commonly overlooked during commercial negotiations, particularly in relation to contingent payments. The critical step is to determine the correct classification of contingent payments between “contingent consideration” and “post-acquisition compensation” as this leads to different accounting and P&L outcomes.
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By Jeffrey A. Ford, Grossman Yanak & Ford LLP
Global market participants are transitioning from using or referencing the LIBOR and similar interbank offered rates to alternative reference rates. In response, in the United States, the FASB issued ASUs 2020-04 and 2021-01 to provide optional expedients and exceptions for affected contract modifications, hedge accounting, and held-to-maturity (HTM) debt securities. A high-level summary of the optional expedients follows.
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By Katherine Rose, Citroen Wells Chartered Accountants
In the United Kingdom, the Coronavirus Job Retention Scheme (CJRS) and the Statutory Sick Pay Rebate Scheme (SSP) resulted in cash payments from the government to compensate employers for part of the wage costs of employees placed on furlough or sick leave, respectively, due to Covid-19.
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By Giorgi Kutchashvili, TMC LLC
Wondering how developing countries succeed? Then this article is for you. In 2014, Georgia signed an Association Agreement with the European Union, under which it undertook to gradually bring the accounting and auditing sector closer to EU norms and standards. As a result, in 2016, Georgia passed a new law according the enterprises accounting, reports preparation/ publication and auditing. The basic idea of the law is that the financial statements of enterprises should be transparent and public.
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By Alan Rajah, Lawrence Grant
In the world of finance and accounting, maintaining the status quo is no longer enough to remain competitive. Today's market requires companies to engage in continuous improvement so that they are always serving clients in faster and more accessible ways. As financial and accounting services look to attract, engage, and retain customers, there's only one solution for climbing the ranks. The digital automation movement is sweeping the field and pushing the limits of what is possible. Companies that embrace automation will find increased profits and productivity. Digital transformation moves manual, repetitive tasks off their employees' checklists and into the metaphorical hands of artificial intelligence.
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