From the investors’ perspective, startups mean high risk and low liquidity. As a result, startup valuation is quite a challenge.
The RSM Poland Blog is a practical guide to taxes and business. We would like to use it as a tool for communicating some of the most interesting tax and economic topics, discussing issues related to incorporation and organisation of companies, touch on transfer pricing and reporting in accordance with Polish and international standards, as well as to study other key notions commonly related to running and managing a business.
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In the previous article, I focused on asset measurement at fair value in the times of economic recession, uncertain future of companies and limited information exchange in the context of IFRS 13 assumptions. What about the measurement of assets to which IFRS 13 does not apply? Contrary to what you may think, there are quite a few of them.
On 13 July 2018, the Act of 1 March 2018 on Countering Money Laundering and Terrorist Financing (Journal of Laws of 2018, item. 723, hereinafter referred to as “the Act”) entered into force in Poland. The goal behind this regulation was the complete and correct transposition of Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing. Certain provisions of the Act entered into force only after 18 months from the date of its announcement, i.e. 13 October 2019, and materially affected the operation of many businesses.
We have recently written a lot about financial instruments: their definition, classification, measurement, impairment, etc. Since all this remains relevant and topical, we will soon be publishing a Q&A with the most frequently asked questions and explain the different aspects of financial instruments that keep baffling our readers.
Today, however, partly due to functioning in a state of epidemic and partly because I want to continue with the topic of impairment of assets (receivables), I decided to focus on the measurement of balance sheet items at fair value.
More and more businesses decide to build their future taking into account the Corporate Social Responsibility – CSR, which certainly works for the benefit of the company image. One of the ways to support local communities may be a donation. If certain conditions are met, a legal person making an in-kind or cash donation may claim an income tax relief. Let’s check then if helping may indeed pay off.
The consequences of economic development include investments of foreign entities in Poland as well as investments of Polish entrepreneurs abroad. Many foreign companies benefit from the abundant resources of well-educated and experienced Polish specialists, whereas Polish investors seek employees with adequate qualifications on foreign markets. As a result, the number of Polish employees employed in foreign entities, as well as foreign employees employed in Polish companies, is growing significantly. Specialists can provide their services from any place in the world (working remotely), often on the territory of more than one country.
Coming back to the topic of financial instruments, I present below – in the form of questions and replies – a set of crucial related issues.
The Anti-crisis shield is to counteract the crippling effect of the current, extraordinary situation related to COVID-19 and the resulting state of emergency on holding meetings and adopting resolutions by the governing bodies of limited liability and joint stock companies.
After the introduction to financial instruments under Polish and international law, exploring the subject of classification and measurements of debentures, analysing the initial recognition of financial instruments in the account books and their classification in compliance with the new IFRS 9 guideline, it is time to discuss hedge accounting.
The M&A transaction market is subject to business cycles. As it depends on the current situation of a business, there may be some ups and downs. Recently, due to the SARS-COV-2 pandemic and the emerging global economic crisis, company owners who planned to sell their businesses are now beginning to question the idea: does it make sense to sell a business at the time of a crisis?