Latest blogs
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What is Accretion Expense?
Accretion expense is the periodic increase in the carrying amount of a discounted long-term liability as it approaches its settlement date. It arises because obligations that will be settled in the future are initially recorded at their present value — a figure lower than the actual amount that will ultimately be paid. As time passes,…
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The Role of Consolidation in IFRS vs. US GAAP: Key Differences for Global CFOs
For groups that must navigate both IFRS and US GAAP — either because they operate across jurisdictions with different reporting requirements, or because they are preparing for a US listing while currently reporting under IFRS — the differences in consolidation rules are not only about accounting policies. They extend to which entities must be consolidated…
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What is a Deferred Tax Asset (DTA)?
A Deferred Tax Asset (DTA) is a balance sheet asset representing tax that the company has effectively overpaid relative to its accounting results — and will recover in future periods through lower tax payments. Understanding how DTAs arise, when they can be recognised, and how they interact with the group consolidation process is important for…
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Foreign Currency in Consolidation: Best Practices for Eliminating FX Noise
Not all FX-related differences in a consolidation are created equal. Some represent genuine economic impact — the real effect of exchange rate movements on the group’s assets, liabilities, and results. Others are noise: artificial variances produced by inconsistent processes, different rate sources, or mismatched timing that would disappear if the same policies were applied consistently…
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What is Impairment Reversal?
Impairment reversal is the accounting recognition of an asset’s recovery in value following a prior impairment loss — permitted under IFRS when the conditions that caused the original impairment have improved, subject to a ceiling that prevents overstating the asset’s carrying value. Understanding impairment reversal requires understanding the impairment framework it operates within, the ceiling…