Author Archives: Mike Morley

IFRS 13 (FASB Topic 820) Fair Value Measurement and Required Disclosures – Such A Concept!

IFRS update

By issuing International Financial Reporting Standard #13 (IFRS 13), the International Accounting Standards Board (IASB) defines fair value, sets out a framework for measuring fair value, and requires disclosures about fair value measurements. The IASB says IFRS 13 applies when another Standard “requires or permits fair value measurements or disclosures about fair value measurements (and measurements based on fair value,

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IAS 36 Impairment of Assets: Goodwill and Impairment

IFRS improves application

This month we’re looking what the IASB (International Accounting Standards Board) has been doing about improving the application of IAS 36 Impairment of Assets and specifically dealing with Goodwill and Impairment. The Board is looking at making the application of IAS 36 easier by using the unrecognized excess of the recoverable amount over the carrying amount of a cash‑generating unit

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Comparability: The Fourth Principle of International Financial Reporting Standards (Part 4 of 4)

The principle of comparability refers to the ability to compare financial statements from year-to-year, company-to-company, and industry-to-industry. IFRS requires that financial statements focus primarily on the needs of the users of the financial statements rather than the desires of those producing the statements. Comparability is one feature that definitely benefits the end user. Being able to easily compare financial statements

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Relevance: The third Principle of International Financial Reporting Standards (Part 3 of 4)


Accountants certainly have a challenge to meet when it comes to applying the IFRS principle of relevance. IFRS says that an item is relevant if the information about that item has the potential to influence significantly the decisions of lenders, investors, and other users of the financial statements. The IFRS principle of relevance corresponds to the GAAP principle of materiality.

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Reliability: The Second Principle of International Financial Reporting Standards (Part 2 of 4)

In the first part of the series, we talked about clarity, the first of the four IFRS principles.  In this article we’ll examine the second principle, reliability. True and fair Reliable information means that the financial statements are a reflection of the company’s economic reality. In other words, are they a true and fair presentation of the company’s operating results

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Clarity: The First Principle of International Financial Reporting Standards (Part 1 of 4)

In conversations with individual accountants, I am discovering an initial reluctance to accept the change to IFRS, which relies more on the accountant’s judgment. IFRS requires that financial statements be prepared using four basic principles: clarity, relevance, reliability, and comparability. The principle of clarity requires that financial statements be easy to read and easy to understand. IFRS guidelines allow substantial

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IFRS: Management Reports or MD & As…or both?

A short time ago someone asked me if the rumor was true. I asked “What rumor?” He replied, “The one about IFRS forcing public companies to file management reports when they file their financial statements with the Ontario Securities Commission. I thought they had to file Management Discussion and Analysis Reports (MD&A) with their statements. Is there a difference between

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