cuongtd

Financial asset valued at amortised costs

by

Last update 24/11/2019 This classification of Financial asset valued at amortised costs is part of the decision model for the classification and measurement of financial assets, that started in the IFRS 9 Framework for financial assets. This is the category classification criteria at initial recognition. A financial asset is measured at amortised cost if both … Read more

Recoverable amount

by

Last update 22/08/2019 IAS 36 Definition: Recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other … Read more

Fair Value of Tangible Assets

by

Last update 22/12/2019 Fair Value of Tangible Assets – In the event of Business Combinations tangible assets (current – non-current) are best valued with the market or income approaches. If adequate data are not available to derive an indication of value through these methods, an appraiser may use the replacement cost method, which adjusts the … Read more

Recognition

by

Last update 22/08/2019 The process of capturing, for inclusion in the statement of financial position or the statement(s) of financial performance, an item that meets the definition of an element. It involves depicting the item (either alone or as part of a line item) in words and by a monetary amount, and including that amount in totals in the relevant statement. … Read more

Fair Value of Decommissioning Obligation

by

Last update 25/11/2019 Fair Value of Decommissioning Obligation is about a nice example of decommissioning a large oil platform. On 1 January 20X1 Entity A assumes a decommissioning (i.e., asset retirement) liability in a business combination. The entity is legally required to dismantle and remove an offshore oil platform at the end of its useful … Read more

Reclassification of financial assets

by

Last update 09/12/2019 Reclassification of financial assets – This section looks at the circumstances in which financial assets are reclassified, and their measurement on reclassification. Financial liabilities cannot be reclassified. [IFRS 9 4.4.2] Reclassification of financial assets – requirements Under IFRS 9, reclassification of financial assets is required if, and only if, the objective of … Read more

Fair value of a liability

by

Last update 25/11/2019 Fair value of a liability provides a practical case showing how fair value of liabilities is measured in slightly more complicated transactions. The Case Fair value of a liability Assume that Entity X and Entity Y each enter into a contractual obligation to pay cash (€500) to Entity Z in five years. … Read more

Reclassification adjustments

by

Last update 22/08/2019 Reclassification adjustments are amounts reclassified to profit or loss in the current period that were recognised in other comprehensive income in the current or previous periods.[IAS 1 92] The following reporting lines are items included in Other comprehensive income, the reclassification adjustments are marked.   IFRS link Financial reporting line IAS 1 … Read more

Fair value measurement in short

by

Last update 26/11/2019 Fair value measurement in short is a brief introduction to some of the key terms used in fair value measurement, as well as a diagram that shows the flow in relation to the process of measuring fair value and determining the appropriate disclosures. The key term that drives this process is fair value: … Read more

Rebuttable presumption – significant increase in credit risk

by

Last update 22/08/2019 IFRS 9 contains a rebuttable presumption that credit risk has increased significantly when contractual payments are more than 30 days past due. This means that when payments are 30 days past due, the financial asset is considered to have moved from Stage 1 to Stage 2, and lifetime expected credit losses are … Read more