Advanced Knowledge Center
Explore our verified library of Advanced transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
Declaration of Cash Dividends
Recording the board's approval to pay dividends before the actual cash is sent.
Initial Recognition of Lease (IFRS 16)
Recording the Right-of-Use (ROU) asset and Lease Liability for a new office lease.
Investment in Equity Securities (FVTPL)
Recording the purchase of shares in another company held for trading.
Issuance of Bonds at a Premium
Recording the cash received when bonds are sold for more than their face value.
Issuance of Common Stock above Par
Recording the sale of new shares to investors including Additional Paid-In Capital (APIC).
Depreciation of Right-of-Use (ROU) Asset
Monthly depreciation entry for an office or equipment lease under IFRS 16 standards.
Purchase of Treasury Stock (Cost Method)
Recording the buyback of a company's own shares from the open market.
Impairment Loss on Goodwill
Recognizing a permanent decrease in the value of goodwill recorded during an acquisition.
Accrual of Professional Audit Fees
Recognizing the expense for the annual audit before the invoice is received or paid.
Accruing Intercompany Loan Interest
Recording interest earned on a loan provided to a subsidiary or related entity.
Fixed Asset Revaluation (IFRS)
Increasing the carrying value of land or buildings to reflect current market fair value.
Provision for Warranty Claims
Estimating and recording future warranty repair costs at the time of sale (Matching Principle).
Bond Interest with Discount Amortization
Recording periodic interest payment and the amortization of a bond discount using the straight-line method.
Exchange of Assets (No Commercial Substance)
Trading an old machine for a similar new one where the future cash flows don't change significantly.
Unrealized Gain on Trading Securities
Adjusting the value of stocks held in a trading portfolio to fair market value at year-end.
Issuance of Short-Term Note Payable
Borrowing cash from a bank by signing a formal 6-month promissory note.
Recognition of Goodwill in Acquisition
Recording the excess price paid over the fair value of net assets when buying a business.
Impairment of Machinery
Writing down an asset whose fair value has fallen below its book value permanently.
Resale of Treasury Stock above Cost
Selling back company-owned shares to the market at a higher price than they were bought for.
Unrealized Foreign Exchange Loss
Adjusting a foreign currency payable at year-end due to exchange rate fluctuations.
Dividends Received from Minority Investment
Recording cash income from shares owned in another company.
Interest-Free Shareholder Loan
Recording cash injected by a business owner to cover short-term operational costs.
Reversal of Prior Month Accrual
Clearing out a month-end estimate at the beginning of the next period to avoid double counting.
Factoring of Accounts Receivable
Selling your unpaid customer invoices to a third party (Factor) to get immediate cash.
Intercompany Expense Recharge
Recharging a portion of a shared expense (like office rent) from the parent company to a subsidiary.
Reclassification of Current Portion of Debt
Moving the part of a long-term loan that is due within the next 12 months to current liabilities.
Issuing Shares for Land (Non-Cash)
Acquiring an asset by giving the seller company shares instead of cash.
Provision for Pending Lawsuit (Prudence)
Recording a liability for a legal case where a loss is probable and the amount can be estimated.
Interest on Lease Liability (IFRS 16)
Recording the monthly interest portion of an office lease payment.
Government Grant for Equipment
Recording a cash grant received from the government to help buy a specific machine.
Correction of Prior Period Accounting Error
Adjusting for an expense that was completely forgotten in the previous fiscal year.
Declaration of Stock Dividends (Bonus Shares)
Issuing new shares to existing shareholders instead of cash.
Stock Split (Memo Entry Only)
A 2-for-1 stock split where the number of shares doubles and par value halves.
Resale of Treasury Stock at a Loss
Selling company-owned shares back to the market for less than what they were bought for.
Impairment of Intangible Asset (Trademark)
Writing down the value of a brand name that has lost its market relevance or legal protection.
Retirement of Treasury Stock
Formally canceling shares that the company bought back, reducing the total share count permanently.
Capitalizing Internal Labor for Fixed Assets
Moving internal staff wages from expenses to a Fixed Asset account because they built a company-used machine or facility.
Gain on Early Settlement of Debt
Paying off a loan early for a discounted amount and recording the resulting gain.
Property Dividend (Dividend in Kind)
Distributing a physical asset (like equipment or inventory) to shareholders instead of cash.
Factoring AR without Recourse
Selling receivables where the buyer (factor) assumes all risk of the customer not paying.
Cumulative Translation Adjustment (CTA)
Recording the change in equity due to translating a foreign branch's books into the home currency.
Initial Recognition: Finance Lease (Lessor)
Recording the removal of an asset and the recognition of a lease receivable when leasing out equipment.
Cash Flow Hedge: Fuel/Commodity
Recording the change in fair value of a fuel price hedge contract (Derivative).
Issuance of Stock Warrants
Recording the cash received from selling warrants (the right to buy stock at a fixed price later).
Asset Retirement Obligation (ARO) Accrual
Recording the future cost of dismantling a specialized facility (like an oil tank or factory) at the end of its life.
Sale-Leaseback Transaction (Gain Recognition)
Selling an office building and immediately leasing it back from the buyer to free up cash.
Early Retirement of Bonds Payable (at Loss)
Buying back company bonds on the open market for more than their carrying value.
Receipt of Legal Settlement (Gain)
Recording cash received from winning a lawsuit against a competitor.
Distribution of Dividends-in-Kind
Giving shareholders company inventory or property instead of a cash dividend.
Bill-and-Hold Sale Recognition
Recognizing revenue when the customer is billed and title passes, but the company keeps the goods in its warehouse at the customer's request.
Change in Asset Useful Life Estimate
Adjusting the monthly depreciation because a machine is now expected to last longer than originally planned.
Advance Payment to Foreign Supplier (USD)
Recording a cash advance to a foreign vendor in USD, translated to local currency (e.g., JOD).
Interest Income on Intercompany Loan
Recording interest earned on money lent to a subsidiary or sister company.
Equity Method: Recording Share of Associate Profit
Recording the company's share of net income from an associate company (20-50% ownership) under IAS 28.
Partial Impairment of Goodwill
Writing down a portion of Goodwill because a subsidiary's fair value has decreased (IAS 36).
Issuance of a Convertible Note
Recording cash received from an investor via a convertible debt instrument (common in tech startups).
Fixed Asset Revaluation (Downward/Loss)
Recording a decrease in land/building value below its original cost (IFRS).
Purchase of Bond Investment at Discount
Recording the purchase of a government or corporate bond for less than its face value.
Stock Option (ESOP) Vesting Expense
Recording the non-cash compensation expense as employee stock options vest over time.
Impairment of Right-of-Use (ROU) Asset
Writing down the value of a leased office or equipment if its utility has decreased (e.g., leaving an office early).
Amortization of Bond Premium
Reducing the Bond Premium liability over time to decrease the effective interest expense.
Step Acquisition (Equity to Control)
Moving an investment from 'Associate' (20%) to 'Subsidiary' (60%) after buying more shares.
Need a specific Advanced entry?
Our team is constantly updating the hub. If you can't find what you need, suggest a new entry below.
Contact Expert