Audit and accounting insights - page 7

An entrepreneur is bound to face many situations that will require contacting Polish authorities, not only in the process of establishing a company and registering it, but also when fulfilling reporting obligations. Today I would like to discuss these basic reporting obligations of business entities with foreign equity participation

Recently, when discussing the five-step model framework and determining the transaction price according to IFRS 15 we mentioned the methods of estimating the transaction price; we have decided to elaborate on these methods in today’s post.

After a couple of weeks we are coming back in our blog to the analysis of the new standard, i.e. IFRS 15. Just like IFRS 9, it is critical for entities preparing their reports in line with IFRS, because they both must be introduced for the first time in financial reporting as at 31 December 2018. Therefore, it is a good idea to take a closer look at the topic of revenue recognition and discuss it further

Last year we wrote a lot in our blog about the new IFRS 16 standard that significantly changes the concept behind considering contracts in terms of the necessity to disclose transactions in the lessee’s balance sheet.  We are going to continue on this topic, answering another batch of the most frequently asked questions concerning this standard.

For quite some time now we have been observing the increased activity of entities, asking questions about leases and requesting the analysis of contracts they have signed to use specific assets, be it lease or rental.

Some time ago we wrote about changes pertaining to preparing financial statements and submitting them to a relevant court register, mainly about the fact that as of March 2018 they can be filed only electronically (e.g. in PDF format); yet, this form, simple as it may seem, has caused a lot of trouble, primarily due to the lack of personal identification numbers (PESEL) of board members and the lack of electronic signatures. Since filing financial statements online has proven to be troublesome, we may only guess that as of 1 October 2018 we are going to face a genuine disaster in this respect. Why is this so? Let me explain.

Over the last couple of months, I have been very intensively involved in the recruitment process in our organisation and I talked to male and female candidates who wanted to learn something more about the work in a specific workplace, which an accounting office most certainly is. In wanting to met the expectations, this post has been written for all those who would like to pursue or continue their accountancy career.

In the previous article we presented the first step in the model framework of revenue recognition, namely contract identification. Under IFRS 15, revenue should be recognised when contractual obligations are satisfied. Therefore, the entity must first indicate performance obligations in the contract, which makes the second step in the new model of revenue recognition. We are going to discuss it further in this article.  

When applying IFRS 15, the first step should be to determine whether the contract exists and has been concluded with the customer

According to experts, the new IFRS 15 concerning revenue recognition is a major milestone in accounting/reporting in recent years.