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Reliable information

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Last update 06/01/2020 Reliable information – While everybody agrees that financial reporting measurements should provide reliable information, there is no consensus as to what exactly reliability means. For example, views differ as to whether verifiability is an essential component of reliability. Reliable information In measurement generally (as opposed to financial reporting specifically), repeat-ability is usually … Read more

Financial fixed assets at fair value through profit or loss

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Last update 12/12/2019 Financial fixed assets at fair value through profit or loss is part of the decision model for the classification and measurement of financial assets, that started in the IFRS 9 Framework for financial assets. But you can also read it without doing the test …. off course? Financial fixed assets at fair … Read more

Relevance

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Last update 22/08/2019 Relevant financial information is capable of making a difference in decisions made by users if it has predictive value, confirmatory value or both. Predictive value – the financial information is useful because it can be used as an input to processes employed by users to predict future outcomes, in making users’ own … Read more

Financial crises and excessive leverage

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Last update 22/12/2019 Financial crises and excessive leverage – Contrary to popular opinion, stock markets generally continue to reflect companies’ intrinsic value during financial crises. For instance, after the 2007 crisis had started in the credit markets, equity markets too came in for criticism. In October 2008, a New York Times editorial thundered, “What’s been … Read more

Related party transaction

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Last update 06/01/2020 IAS 24 Definition: A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged. See the definitions for related parties here. A related-party transaction is a deal or arrangement between two parties who are joined by … Read more

Financial Crises

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Last update 22/12/2019 Financial Crises – Behind the more recent financial and economic crises beginning in 2007 lies the fact that banks and investors forgot the principle of the conservation of value. Let’s see how. First, individuals and speculators bought homes—illiquid assets, meaning they take a while to sell. They took out mortgages on which … Read more

Regulated interest rates

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Last update 09/12/2019 Regulated interest rates – IFRS 9 recognises that in some jurisdictions, the government or a regulatory authority sets interest rates – e.g. as part of a broad macro-economic policy, or to encourage entities to invest in a particular sector of the economy. In some of these cases, the objective of the time … Read more

Regular way purchase or sale

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Last update 22/08/2019 A purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned. A regular way purchase or sale of financial assets as such means trading in long positions on an exchange. IFRS 9 B3.1.5 and … Read more

Financial assets at fair value through other comprehensive income

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Last update 12/12/2019 This Financial assets at fair value through other comprehensive income is part of the decision model for the classification and measurement of financial assets, that started in the IFRS 9 Framework for financial assets. But you can also read it without doing the test …. off course? This is the classification arrived … Read more

Refund liabilities

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Last update 27/12/2019 Refund liabilities – An entity may receive consideration that it will need to refund to the customer in the future because the consideration is not an amount to which the entity ultimately will be entitled under the contract. These amounts received (or receivable) needs to be recorded as refund liabilities. A refund … Read more