IFRS Perspectives - Q2 2017

When properly used, non-GAAP financial measures supplement the GAAP information to provide investors with relevant and useful additional information about a company’s financial performance, financial condition or cash flows and liquidity.

Below we highlight key accounting areas requiring judgment when a company is preparing combined and/or carve-out financial statements.

The general principles that drive the classification of a financial instrument as a financial liability or as equity under IFRS are outlined below.