As the importance of climate-related commitments grows in the corporate sector, questions arise regarding their...
Accounting for Climate-Related Commitments
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Liabilities
Shares issued: Are they debt or equity?
Intuitively, accountants tend to treat shares issued by a company as equity based on their legal form. The classification of the...
Accounting for Pillar Two of BEPS 2.0
The OECD/G20 developed Global Anti-Base Erosion (‘GloBE’) model rules in Pillar Two of BEPS 2.0 to address...
Rent forgiveness: Impairment, derecognition or modification?
In October 2022 the IFRS Interpretations Committee (“IFRIC’) published an agenda decision on accounting for rent...
Classification of liabilities: Loan covenants
Financial statements distinguish between current and non-current assets and liabilities. Assets are classified on, amongst...
Debt or equity: The role of shareholder decisions
It is often a complex decision to classify an instrument issued by an entity as debt or equity. IAS 32 Financial Instruments -...