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Last update 24/12/2019 Topics hide Modifications Modifications and Write-offs Financial assets Write-offs Modifications and Write-offs Financial assets Modifications and Write-offs Financial assets Related posts: Modifications Modifications and Write-offs Financial assets If the contractual cash flows of a financial asset are modified or renegotiated in such a way that does not result in derecognition of that financial … Read more

Last update 27/11/2019 Mechanics of rebalancing – Whether an entity has to rebalance a hedging relationship is first and foremost a matter of fact, which is, whether the hedge ratio has changed for risk management purposes. An entity has to rebalance a hedging relationship if that relationship still has an unchanged risk management objective but … Read more

Last update 30/09/2019 To be accurate in IFRS: Measuring progress toward complete satisfaction of a performance obligation 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 … Read more

Last update 28/11/2019 IFRS 9 adds only two paragraphs in the application guidance on measuring ineffectiveness, dealing with the time value of money and hypothetical derivatives. Although intended as a clarification, these two paragraphs might have wider implications for some practices currently applied by entities. Topics hide The effect of the time value of money … Read more

Last update 16/12/2019 Measuring goodwill or a gain from a bargain purchase – Applying IFRS 3’s formula may result in a positive amount (goodwill) or a negative amount (gain from a bargain purchase). These amounts are accounted for differently. A gain from a bargain purchase is expected to arise relatively infrequently and can normally be … Read more

Last update 18/11/2019 Measurement under IFRS is still diverse and sometimes inconsistent. Here is a summary of current measurement practices in IFRS and areas for improvement. The standards for which the IASB is responsible – International Financial Reporting Standards (IFRS) – are one collection of financial reporting practices. They are increasingly important because of the … Read more

Last update 17/12/2019 Measurement of remaining coverage – An entity measures the liability for remaining coverage on initial recognition of a group of insurance contracts eligible for the premium allocation approach (PAA) that are not onerous, as follows (IFRS 17 55]: The premium, if any, received at initial recognition Minus Measurement of remaining coverage Any … Read more

Last update 19/12/2019 Measurement of insurance contracts The carrying amount of a group of insurance contracts at the end of each reporting period isthe sum of the liability for remaining coverage and the liability for incurred claims. At the end of each reporting period the liability for remaining coverage and the liability for incurred claims … Read more

Last update 18/11/2019 Measurement of Expected Credit Losses does not have to be difficult, certainly in a normal business operation. For financial institutions (insurance and banks) such measurement will be more complicated, but in these industries big data technologies provide a very useful tool. The basis for an Estimate of Expected Credit Losses is an … Read more

Last update 13/09/2019 The total carrying amount of equity (total equity) is not measured directly. It equals the total of the carrying amounts of all recognised assets less the total of the carrying amounts of all recognised liabilities. Because general purpose financial statements are not designed to show an entity’s value, the total carrying amount … Read more