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Last update 20/11/2019 Refinancing of bank debt is a case of different intercompany financing arrangements at arm’s length investment terms and at (more of) intercompany investment terms or at (third party) bank finance terms. As a result it includes quite a lot of special explanations of issues faced in such less standard financing terms. Assume … Read more

Last update 25/11/2019 Recognition of revenue as principal or agent, that is a big question under IFRS 15. Recognise a large amount of revenue as a principal or only a fraction of that turnover as an agent. So the stakes are high!! Royalty payments Entity A has agreed to pay a royalty to Entity B … Read more

Last update 12/12/2019 Recognition and measurement taxation Example 1 — The expected value method is used to reflect the effect of uncertainty for tax treatments considered together These examples accompany, but are not part of, IFRIC 23. These examples portray hypothetical situations illustrating how an entity might apply some of the requirements in IFRIC 23 … Read more

Last update 04/12/2019 Recognising operating leases and intangible assets – As part of using the acquisition method for each Business Combination the acquirer has to recognise operating leases and intangible assets. Topics hide Operating leases Recognising operating leases and intangible assets Intangible assets Recognising operating leases and intangible assets Recognising operating leases and intangible assets … Read more

Last update 21/12/2019 Recognise revenue when or as the entity satisfies each performance obligation – This part relates to a complete explanation of IFRS 15 Revenue from contracts with customers in respect of Engineering & Construction contracts, see Revenue from Engineering & Construction contracts. Under IFRS 15, an entity recognises revenue when (or as) it … Read more

Last update 16/09/2019 IFRS 15 Revenue from Contracts with Customers (contents page is here) introduced a single and comprehensive framework which sets out how much revenue is to be recognised, and when. The core principle is that a vendor should recognise revenue to depict the transfer of promised goods or services to customers in an … Read more

Last update 23/12/2019 Rebalancing of hedged item or hedging instrument – IFRS 9 introduces the concept of ‘rebalancing’. Rebalancing refers to adjustments to the designated quantities of either the hedged item or the hedging instrument of an existing hedging relationship for the purpose of maintaining a hedge ratio that complies with the hedge effectiveness requirements. … Read more

Last update 27/11/2019 Rebalancing Definition – The newly introduced concept of rebalancing only comprises changes to the hedge ratio to reflect expected changes in the relationship between the hedged item and the hedging instrument. Rebalancing refers to adjustments to the designated quantities of either the hedged item or the hedging instrument of an existing hedging … Read more

Last update 30/09/2019 IFRS 15 Revenue from Contracts with Customers (contents page is here) introduced a single and comprehensive framework which sets out how much revenue is to be recognised, and when. The core principle is that a vendor should recognise revenue to depict the transfer of promised goods or services to customers in an … Read more

Last update 29/11/2019 Realised cash flows differ from expectations – The business model assessment is forward-looking, so cash flows may sometimes be realised in a way that differs in a way that differs from the entity’s expectations at the time of the original assessment. For example, the entity might sell more assets from the portfolio … Read more