IFRS Business Application

In this section you will find examples of topics and questions that may concern your business models, processes within operational accounting or financial decisions and planning (please note that the listing is not extensive):

  • What impact inflation or supply chain issues might have on the valuation of inventories in accordance with IAS 2 Inventories?
  • What requirements must be met to recognize the sale of my products or services as revenue at a specific point in time under IFRS 15 Revenue from Contracts with Customers? When a different recognition pattern; i.e. revenue recognized over a certain period of time (e.g. straight-line) would be more appropriate?
  • How the terms "performance obligations," "transaction price," "contract for accounting purposes," and "contract modifications" are defined by IFRS 15 Revenue from Contract with Customers? How my business shall consider those terms in practice when reporting under IFRS?
  • How our company shall provide for product returns and warranties in accordance with IFRS? Which standard applies to our business model: IFRS 15 Revenue from Contract with Customers or IFRS 37 Provisions, Contingent Liabilities and Contingent Assets?
  • Leases in accordance with IFRS 16. Do all lease assets have be recognized on the balance sheet with a corresponding liability or are execptions allowed? If yes, which exceptions might apply to my business?
  • What criteria must be met to allow us capitalize our expenditures on internally developed software in accordance with IAS 38 Intangible Assets? In which cases recognizing those expenditures as operating expenses (with profit and loss impact) would be more appropriate?
  • Goodwill from past business combinations: What criteria must be considered for goodwill impairment testing in accordance with IFRS 3 Business Combinations? Under which circumstances an impairment of goodwill must be recognized?
  • What requirements of IFRS 3 Business Combinations must be fulfilled to present a subsidiary as a fully consolidated entity in our financial statements?
  • Do provisions of IAS 37 Provisions, Contingent Liabilities and Contingent Assets make it mandate a company to provide for lawsuit costs despite the fact the outcome cannot be predicted reliably?