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cuongtd Last update 29/11/2019 Factoring with recourse – This is an illustration of how derecognition is applied in practice. The objective is to present the mechanics of applying the IFRS 9 requirements for derecognition of financial assets, starting with an analysis of the transaction using the flowchart [IFRS 9 B3.2.1], and culminating with the initial and … Read more
Last update 21/08/2019 Purchased or originated financial asset(s) that are credit-impaired on initial recognition. For purchased or originated credit-impaired financial assets it is clear for the owner that the value of these financial assets is lower than their nominal or initial value. Also it was clear the interest revenue is not the full interest promoted at … Read more
Last update 29/11/2019 Factoring with late payment risk retained – This is an illustration of how derecognition is applied in practice. The objective is to present the mechanics of applying the IFRS 9 requirements for derecognition of financial assets, starting with an analysis of the transaction using the flowchart [IFRS 9 B3.2.1], and culminating with … Read more
Last update 21/08/2019 A provision is a liability of uncertain timing or amount. To better understand the nature of the financial reporting line ‘Provisions’ a comparison is made with other liabilities and contingent liabilities. From their nature provisions are more or less in between other liabilities (less uncertain) and contingent liabilities (more uncertain). Provisions and … Read more
Last update 29/11/2019 Factoring of trade debtors is by far the most common transaction entered into by non-financial entities that requires assessment against the derecognition criteria. Surprisingly, IFRS 9 does not mention it in its examples. Factoring of trade debtors can serve as a useful example to illustrate derecognition requirements. Factoring of trade debtors Example: … Read more
Last update 22/10/2019 Rights designed to protect the interest of the party holding those rights without giving that party power over the entity to which those rights relate. Protective rights relate to fundamental changes to the activities of an investee or apply in exceptional circumstances. However, not all rights that apply in exceptional circumstances or are contingent … Read more
Last update 21/12/2019 Extra disclosures IFRS 15 contracts – 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. Contract balances The disclosures related to contract balances are extensive and intended to enable users to understand … Read more
Last update 21/08/2019 A method of accounting whereby a venturer’s share of each of the assets, liabilities, revenue and expenses of a jointly controlled entity is combined line by line with similar items in the venturer’s financial statements or reported as separate line items in the venturer’s financial statements. Joint venture accounting (JV) A joint … Read more
Last update 22/12/2019 The scope of IFRS 6 Exploration for and Evaluation of Mineral Resources is limited to the recognition, measurement and disclosure of expenditure incurred in the phase covering the Exploration for and Evaluation (Exploration and evaluation) of mineral resources. Although the term used is ‘mineral resources’, the definitions in IFRS 6 clarify that … Read more
Last update 21/08/2019 Accounting policy example Property, plant and equipment is stated at cost, less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into the location and condition necessary for it to be capable of operating … Read more