When Standard Setters are too slow: The Case for Tesla’s 1.5 bn USD Bitcoin Accounting
(Not only) in my opinion, the seminal and still most relevant paper about bitcoin accounting practice was written about three years ago by Deloitte Australia Partner and former IASB member Henri Venter: Digital currency – A case for standard setting activity – A perspective by the Australian Accounting Standards Board (AASB). Based on lots of interesting […]
SNP’s Profit Warning and its Order Book: Oh Revenue, where Art Thou?
Schneider-Neureither & Partner SE (SNP) is a German software company, mainly active in the field of data transformation solutions. The company often runs bigger development projects which take several months or even years to be finished. It is a classic investment example of where an order book could help a lot to forecast revenues because […]
Understanding ESOPs (2): How Ocado magically palmed 63.6 mio GBP of Expenses
In one of our former blog posts we had a look at the accounting functioning of equity-settled stock option programs (HERE). Today we want to extend this framework for cash-settled programs – or more concretely: for programs that start out as equity-settled and become cash-settled on the way. It gets a bit more complex, though […]
European Banks and the Q3/20 IFRS 9 Overlay – Fundamental vs. Technical Input to Accounting
As a consequence of the experiences made during the great financial crisis 2008/09 the IASB changed financial instruments accounting away from the incurred loan losses approach to a forward looking expected loan losses approach. Concretely, the new IFRS 9 Financial Instruments applies a 3-stage model which requires to classify loans into performing, under-performing or non-performing based on […]
Foreword by Andrew Chilvers For ambitious companies eager to expand into overseas markets, often the conventional route of organic business development is simply not fast enough. The other option to invest in or buy a business outright is far quicker but often fraught with unforeseen dangers. And even the biggest, most experienced players can get […]
In 2011, the International Accounting Standards Board (IASB) disclosed a whole package of new and revised standards that all addressed the topic ‘reporting entity’. Amongst these standards were the new IFRS 10 Consolidated Financial Statements and IFRS 11 Joint Arrangements. One of the core messages of these two new standards was: The so far existent policy choice of […]
Is Proximus Tackling IFRS too Hard? – The Belgian Football Broadcasting Rights Accounting Dispute
Belgian football is one of the most attractive in the world, even though the national first league is not so much loaded with international top stars as e.g. the Spanish or the English league. The country has brought out all-time top stars such as Jan Ceulemans, Enzo Scifo or Eden Hazard (to name but a […]
Dealing with stock options (employee stock options ESOs or employee stock option programs ESOPs) in business valuation is not easy. A proper treatment of these instruments is particularly tricky if the options are structured with specific contingent exercise features which makes the concrete valuation of single options quite challenging. The general technique of the consideration […]
Equinox’ Share Purchase Warrants: What a Difference an Issuing Motivation (and a Currency) makes!
Equinox Gold Corp (EQX) is a Vancouver, Canada, -based mid-tier gold producing company with operations in the US, Mexico and Brazil. In its modern shape, EQX is the result of a major recapitalisation and a December 2017 merger with the three companies Trek Mining, Newcastle Gold and Anfield Gold. Furthermore, EQX performed major growth steps […]
Babcock’s strange JV Reporting: Catch-Up Effects, omitted Revenues and overshooting Margins
London-based Babcock International Group Plc. is a multinational engineering support services company with a strong exposure to public clients. The company usually manages large multi-year contracts with sometimes complex structures. For some of these contracts Babcock is the sole manager (mainly in fields where there is no or only few competition), many other contracts are […]
It is not a big secret that coronavirus has hit the airline industry massively. Flight traffic down to super-lows and even for those planes that fly load factors are at levels never seen in the past decades. Today we want to have a look at a special effect of coronavirus on the airline industry (and […]
Grenke: More thoughts on Related Parties, Cash and the “Brink”-Problem
In our most recent blog post we have already given some first comments on the Viceroy-Grenke-case HERE. We think some more points are worth commenting, in particular to remind everybody that – despite the fact that we see most of the accusations as highly overdone – this short-seller attack is not something to take lightly. Related Parties […]
