Simplifying accounting fundamentals

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Property Plant and Equipment: Statement of Financial Position/Balance Sheet

The Property, Plant and Equipment (PPE) classification is shown on the Statement of Financial Position/Balance Sheet under Non-Current...

Property Plant and Equipment: Subsequent Measurement, Revaluation and Disposals

In our previous article, we reviewed the basics of PPE: how we define PPE, what is included in the costs of PPE, how we eventually...

Impairment of Assets

Impairment occurs when an asset devalues and is no longer worth its carrying amount. Both ASPE (ASPE 3063) and IFRS (IAS 36) have clear...

Impairment: Cash Generating Units

A Cash Generating Unit (CGU) is defined as the smallest identifiable group of assets that are able to generate cash inflows. Additionally,...

Impairment: How to Record and Account for an Impairment

Impairments are recorded similarly for both individual assets and Cash Generating Units (CGU). However, CGU impairment accounting...

Impairment: Reversal IFRS only

IFRS permits the reversal of impairment for long-lived assets (IAS 36). However, impairments cannot be reversed in ASPE (ASPE 3063)...

Construction Contracts: Measuring Revenues, Expenses and COGS

Construction contracts can span several fiscal years/reporting periods, which makes it difficult to determine how much revenue, expense...

Leases: ASPE 3065

ASPE 3065 addresses the two different types of leases recorded for accounting purposes: Capital Lease and Operating Lease.

Leases: IFRS 16

IFRS 16 now replaces IAS 17 guidance in how entities should report leases. Under IFRS 16, lessees will record a Right-of-Use Asset (similar

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