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Disclosures Hedges Financial position

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Last update 08/12/2019 Disclosures Hedges Financial position – Performance on the financial position and performance IFRS 7 sets out a specific requirement to disclose the effect hedge accounting has on the entity’s financial position and the performance. All disclosures are required in a tabular format and by type of risk. Disclosures Hedges Financial position Instead … Read more

Matrix form of organisation

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Last update 06/01/2020 Matrix form of organisation – a matrix organizational structure is a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have dual reporting relationships – generally to both a functional manager and a product manager. Example … Read more

Disclosures Future cash flows

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Last update 28/11/2019 Disclosures Future cash flows – The amount, timing and uncertainty of future cash flows surrounding hedging arrangements and financial instruments at least since the financial meltdown in 2008 caused a significant increase of disclosures of which this is (partly) one. Further to the risk management / hedging strategy high level disclosure, entities … Read more

Material

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Last update 19/08/2019 Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. In other words, materiality is an entity-specific aspect of relevance … Read more

Disclosure when information is seriously prejudicial

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Last update 04/12/2019 Disclosure when information is seriously prejudicial – Unfortunately disputes may arise between an entity and a third party, employee, manager, director and these disputes may result in legal action being entered into between the parties. The issue giving rise to the provision (or contingent liability) might not have reached the legal stage, … Read more

Market-corroborated inputs

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Last update 05/01/2020 Market-corroborated inputs are inputs to fair value calculation models that are derived principally from or corroborated by observable market data by correlation or other means (level 2 inputs see below). By correlation or other means implies the inputs are directly or indirectly based on executable market prices, modified mathematically to pertain to … Read more

Disclosure requirements IFRS 4 and IFRS 17

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Last update 05/12/2019 Disclosure requirements IFRS 4 and IFRS 17 – Explanation of recognized amounts from IFRS 4 to IFRS 17 1 Introduction Disclosure requirements IFRS 4 and IFRS 17 [IFRS 17 (98), IFRS 17 (93)-(96)] IFRS 4 requires an entity to disclose information that identifies and explains the amounts in its financial statements arising … Read more

Market risk

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Last update 21/08/2019 The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk, and other price risk. Currency risk The risk that the fair value or future cash flows of a … Read more

Disclosure recognised insurance amounts

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Last update 14/12/2019 Explanation of recognised amounts Disclosure recognised insurance amounts An entity is required to disclose the following: Reconciliations that show how the net carrying amount of contracts within the scope of IFRS 17 changed during each period (see 1 below) Disclosures for contracts other than those to which the entity applies the premium … Read more

Macro hedging

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Last update 11/12/2019 Macro hedging – IFRS 9 hedge accounting applies to all hedge relationships, with the exception of fair value hedges of the interest rate exposure of a portfolio of financial assets or financial liabilities (commonly referred as ‘fair value macro hedges’). This exception arises because IASB has a separate project to address the accounting … Read more