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IFRS in Practice

IFRS in Practice sets out practical information about the application of key aspects of IFRS, including industry specific guidance.
Please speak to your normal BDO contact if you would like to discuss any aspects of the publication, or click here to be redirected to contact details for BDO's  'IFRS Leaders - The IFRS Working Party' or to a list of IFRS Country Leaders who are key contacts at our member firms.

IFRS 9 Financial Instruments (Oct 2015) 

This BDO IFRS in Practice publication sets out practical information and examples about the application of key aspects of IFRS 9.

IFRS 9 (2014) has been developed by the International Accounting Standards Board (IASB) to replace IAS 39 Financial Instruments: Recognition and Measurement.

The IASB completed IFRS 9 in July 2014, by publishing a final standard which incorporates the final requirements of all three phases of the financial instruments projects, being:

• Classification and Measurement,
• Impairment, and
• Hedge Accounting

The IASB’s project was initially carried out as a joint project with the US Financial Accounting Standards Board (FASB). However, FASB ultimately decided to make more limited changes to the classification and measurement of financial instruments, and to develop a more US specific impairment model for financial assets.




​IFRS 15 Revenue from Contracts with Customers - Transition (Apr 2015)

This publication summarises the transitional requirements of IFRS 15 and provides practical examples to illustrate the effect of the transitional provisions.

The guidance in IFRS 15 is considerably more detailed than existing IFRSs for revenue recognition and includes extensive application guidance and illustrative examples, and may bring significant changes which will need careful planning.

Entities need to start thinking about the impact of this new standard and this needs to cover not only changes to how revenue will be recognised in future, but also how they will transition to the new requirements. This is because a number of different approaches are permitted which may have a significant effect on amounts that are included in profit or loss.





IFRS 15 Revenue from Contracts with Customers (Oct 2014)

This publication provides practical information and examples about the application of key aspects of IFRS 15.

The new Standard establishes a single and comprehensive framework which sets out how much revenue is to be recognised, and when.

The core principle is that a vendor should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the vendor expects to be entitled in exchange for those goods or services.

IFRS 15 also introduces an overall disclosure objective together with significantly enhanced disclosure requirements for revenue recognition. 


​IAS 7 Statement of Cash Flows (May 2014)

This publication addresses a number of practical issues which often arise in practice from the application of IAS 7 Statement of Cash Flows, including:

  • Definition of cash and cash equivalents
  • Restricted cash and cash equivalents balances
  • Classification of cash flows as operating, investing or financing
  • Offsetting cash inflows and outflows
  • Presentation of operating cash flows using the direct or indirect method
  • Income taxes and sales taxes
  • Foreign exchange
  • Group cash pooling arrangements in separate financial statements
  • Securities and loans held for trading
  • Classification of cash flow from derivatives used in an economic hedge
  • Finance leases
  • Cash flows arising from business combinations
  • Cash flows from discontinued operations.

Distinguishing between a business combination and an asset purchase in the extractives industry (Mar 2014)

This publication addresses the accounting requirements, judgements, and difficulties in distinguishing asset acquisition transactions between:

  • A 'business combination', and
  • An asset purchase.

Key topics that are addressed in the publication include:

  • Differences in between the accounting requirements for a business combination and an asset acquisition
  • The definition of a ‘business’, and the interaction of consideration regarding inputs, processes, and outputs as well as the existence of any goodwill.
  • Types of transactions that may, or may not, give rise to a business combination, or where judgement is required
  • Reverse acquisitions (‘backdoor listings’)
  • Analysis of the 2013 IASB Staff Paper regarding the definition of a business.

(Note: Principles and examples included are equally relevant and applicable to entities operating in industries other than the extractives industry)


This publication summarises the requirements of IAS 36 Impairment of Assets, including:
  • The scope of the standard
  • Goodwill and cash generating units (CGUs)
  • Indicators of impairment and the timing of impairment tests
  • Impairment testing (including; determining carrying and recoverable amounts, fair value less costs of disposal method, and value in use method)
  • Recognising impairments
  • Reversing impairments
  • Disclosures
  • Considerations for CGUs with non-controlling interests
  • Other practical considerations.

The publication also considers and incorporates recent concerns and enforcement priorities raised by regulators, including both:

  • Disclosures 
  • How impairment tests are prepared (i.e. inputs used, determination of CGUs, allocation of goodwill to CGUs etc.).

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This publication summarises several common errors that can be made in an entities financial statements in relation to the treatment of share-based payments, including:
  • Failure to identify share-based payments, and
  • Inappropriate accounting for share-based payments.
This publication summarises the requirements of IFRS 6 Exploration for and Evaluation of Mineral Resources, and looks at a number of practical issues which often arise in practice (including 'Farm-in' arrangements).









Accounting for Commodity Loans (Oct 2012)

This publication highlights a number of practical issues that need to be considered when determining the appropriate accounting approach for commodity loans (i.e. where a lender advances funds which, instead of being repaid in cash, may be repaid by the delivery of a quantity of a commodity during a specific period).   


This publication highlights a number of practical issues that need to be considered when determining the appropriate accounting approach for convertible instruments.