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cuongtd Last update 11/12/2019 Disclosure of significant judgments for insurances – Consistent with IAS 1, IFRS 17 requires disclosure of significant judgment and changes in judgment that an entity makes in applying the standard [IFRS 17 93 and IAS 1 122]. Specifically, an entity must disclose the inputs, assumptions and estimation techniques it has used, including … Read more
Last update 21/08/2019 IFRS 9 includes a practical expedient for low credit risk financial instruments. Characteristics of low credit risk financial instruments include: Strong capacity to meet its contractual cash flow obligations in the near term, Adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the borrower’s … Read more
Last update 23/12/2019 Disclosure of restrictions to cash and its equivalents – Restricted cash and cash equivalent balances are those which meet the definition of cash and cash equivalents but are not available for use by the group. In practice, these balances may arise when a subsidiary in a group operates in a jurisdiction where … Read more
Last update 06/12/2019 Low credit risk, in the context of IFRS 9, is an indicator assigned to financial instruments deemed to have low default risk, that is a low likelihood of any credit event the borrower has a strong capacity to meet contractual cash flow obligations both in the near term. It is an important … Read more
Last update 16/09/2019 The disclosures regarding operating segments focus on the information that management believes is important when running the business. The disclosure requirements are summarised below. Information required Disclosures General information Factors used to identify the reportable segments. Types of product/service from which each reportable segment derives its revenue. Information about the reportable segment; … Read more
Last update 13/12/2019 The loss given default (LGD) represents the entity’s expectation (entity often being an insurer but also other entities) of the extent of loss on a defaulted exposure. The LGD varies by type of borrower, type and seniority of claim and availability of collateral or other credit support. The LGD is expressed as … Read more
Last update 23/12/2019 Disclosure innovations in financial reporting – This is a note on the innovative history of Philips’ financial reporting, see the ‘Introduction to a history of innovation in financial reporting‘. In the Netherlands formal legislation concerning financial reporting was introduced rather late in the early 1970s. The lack of formal legislation was a … Read more
Last update 14/11/2019 Loss allowance is an approach for the prudence or conservatism principle. Assets should not be overstated, liabilities not understated. Better save, than sorry! The term ‘Loss allowance’ covers allowances recorded against the following financial assets: The allowance for expected credit losses on financial assets measured at amortised costs (in accordance with IFRS … Read more
Last update 17/12/2019 Disclosure for Insurance contracts – The disclosure requirements in IFRS 17 aim to provide users of the financial statements with a basis to assess the effect that contracts within the scope of IFRS 17 have on an entity’s financial position, financial performance and cash flows. Disclosure for Insurance contracts Disclosure for Insurance … Read more
Last update 18/08/2019 Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market other than: those at fair value through profit or loss; those designated as available-for-sale; and those which the holder may not recover substantially all of its initial investment. Loans and receivables shall be measured upon initial … Read more