Weekly Catch-Up 17th September
Wednesday 25 September 2019
How does IFRS 16 affect retailers?
So far a handful of fashion retailers have detailed their costs to date with regards IFRS 16. The impact of IFRS 16 should be neutral in the long term but it may not always seem that way when companies account for the new measure in their reporting.
While individual retailers try to come to terms with costs associated of implementing IFRS 16, it could accelerate the shift towards more flexible property leasing.
UK: The CEO of FRC was paid almost 3 times as such as the prime minister
Stephen Haddrill, chief executive of the Fiancial Reporting Council (FRC) earned well over £400k in the same year his organisation was made redundant. The FRC was abolished after a former civil servant found widespread conflicts of interest.
United States: Starbucks to add to its disclosures to clarify impact of new accounting standards
Starbucks were recently questioned by the Securities and Exchange Commission (SEC) about its accounting practices. As a result, Starbucks will provide more disclosures about how it recognises revenue.
The Wall Street Journal has reported that at least 208 companies have received letters from the SEC about their revenue-recognition practices in 2018.
UK: Plans are in place to ensure the charity accounting framework better serves the public
The Statement of Recommended Practice (SORP) has been developed to better meet the needs of those who use charity reports and accounts.
A new process of developing the SORP is intended to be in place from 2020. It will be ensured that a SORP is technically correct for true and fair accounting.
FASB proposes to erase complex debt classification rules
Under new plans by the Financial Accounting Standards Board (FASB) debts due within 12 months of a business’ balance sheet date, would be classified as current. Some businesses feel that this could make them more indebted than they are.
About the Author