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Guidance in identifying the acquirer

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Last update 04/12/2019 Guidance in identifying the acquirer – The guidance in IFRS 10 Consolidated Financial Statements shall be used to identify the acquirer—the entity that obtains control of the acquiree. If a business combination has occurred but applying the guidance in IFRS 10 does not clearly indicate which of the combining entities is the … Read more

Structured products or Euro Medium Term Note (EMTN)

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Last update 11/12/2019 Structured products or Euro Medium Term Note – Structured products are combinations of two or more financial instruments, forming together a new investment product. At least one of them must be a derivative product. Structured products with capital protection are the most frequently traded. Such products can be traded either on the stock-exchange … Read more

Groups of items Hedging

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Last update 27/11/2019 Groups of items hedging, designation of layer components these are relevant for a practical risk management process to base hedge accounting on. Hedge accounting under IAS 39 was primarily designed from a single instrument viewpoint, and therefore less effective to apply. A hedging relationship would typically include a single hedging instrument (e.g., … Read more

Structured entity

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Last update 05/01/2020 A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. Whether an investee … Read more

Group cash pooling and company accounts

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Last update 22/12/2019 Group cash pooling and company accounts – Cash pooling arrangements arise where one group entity (which may be the ultimate group parent, or a fellow subsidiary) acts as the treasury function for the rest of the group. Under these arrangements, one entity within a group holds and maintains all cash balances with … Read more

Stochastic Modeling in Insurance

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Last update 18/12/2019 Stochastic Modeling in Insurance – Some general introduction in addition to this narrative is provided in wikipedia, Stochastic Modeling (insurance). Recent cataclysmic events like the tsunami, torrential downpour, floods, cyclones, earthquakes, etc. underscore the fact that everyone would like to be assured that there is some (non-supernatural) agency to bank upon in … Read more

Government grants and assistance

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Last update 02/12/2019 The receipt of government grants and assistance by an entity may be significant for the preparation of the financial statements for two reasons. Firstly, if resources have been transferred, an appropriate method of accounting for the transfer must be found. Secondly, it is desirable to give an indication of the extent to … Read more

Stand-alone selling price

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Last update 24/08/2019 Exact wording: Stand-alone selling price of a good or a service. The price at which an entity would sell a promised good or service separately to a customer. The best evidence of standalone selling price is the price that the entity charges for the good or service in a separate transaction with a … Read more

Going concern assumption

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Last update 06/01/2020 Going concern assumption – Going concern is one the fundamental assumptions in accounting on the basis of which financial statements are prepared. IAS 1 states “When preparing financial statements, management shall make an assessment of an entity’s ability to continue as a going concern. An entity shall prepare financial statements on a … Read more

Stand ready obligations

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Last update 20/12/2019 Stand ready obligations – In step two of IFRS 15, an entity is required to identify all of the performance obligations promised in a contract with a customer. In many cases, the performance obligations are readily apparent in the contract. In other cases, promises implicit in the contract may qualify as performance … Read more