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cuongtd Last update 27/11/2019 Designating proxy hedges is a direct result from IASB’s IFRS 9 Hedge accounting ambition to align hedge accounting more to/into the risk management activities of a reporting entity. But not on a scholastic, black/white, way. The objective of IFRS 9 Hedge accounting is to represent, in the financial statements, the effect of … Read more
Last update 25/11/2019 Under IFRS 11, ‘Joint Arrangements’, investments in joint arrangements are classified as either joint operations or joint ventures, depending on the contractual rights and obligations that each investor has, rather than the legal structure of the joint arrangement. A reporting entity has assessed the nature of its joint arrangements and determined whether that it has … Read more
Last update 14/11/2019 Derecognition of financial assets has drawn a lot of attention in the Enron scandal. Enron used special purpose entities—limited partnerships or companies created to fulfil a temporary or specific purpose to fund or manage risks associated with specific (financial and/or non-financial) assets. Derecognition of financial assets On October 16, 2001, Enron announced … Read more
Last update 27/12/2019 Investments in Associates and Joint Ventures are two types of investments that are in use by many larger groups of companies. Topics hide Associate Joint venture Strategic investments in financial assets The equity method Investments in associates Initial measurement Subsequent measurement Investments in Associates and Joint Ventures Associate An associate is an … Read more
Last update 28/11/2019 Derecognise a transfer of a financial instrument or not – to quickly grow comfortable and get a gut feeling for derecognising a financial instrument read this page. Small cases with different inputs with a analysing comment on the case provide a fruitful learning ground. Here are some examples regarding transfers of financial … Read more
Last update 05/08/2019 A method of accounting for an investment, whereby the investment is recognised at cost. The investor recognises revenue from the investment only to the extent that the investor is entitled to receive distributions from accumulated surpluses of the investee arising after the date of acquisition. Entitlements due or received in excess of … Read more
Last update 29/11/2019 Derecognise a sale of a financial instrument or not – to quickly grow comfortable and get a gut feeling for derecognising a financial instrument read this page. Small cases with different inputs with a analysing comment on the case provide a fruitful learning ground. Here are some examples regarding sale transactions of … Read more
Last update 21/08/2019 Investment property is property (land or a building—or part of a building—or both) held (by the owner or by the lessee as a right-of-use asset) to earn rentals or for capital appreciation or both, rather than for: use in the production or supply of goods or services or for administrative purposes; or sale in the … Read more
Last update 23/12/2019 Demand deposits and Cash and cash equivalents – Demand deposits are not defined in IFRS. However, in order to qualify as cash, the related balance needs to have the same liquidity as cash itself, and so funds on ‘demand deposit’ need to be capable of being withdrawn at any time without penalty. … Read more
Last update 11/12/2019 Investment funds are companies or organized joint ownerships which are collecting funds from a certain number of investors and which are engaged in reinvesting those funds according to the principle of risk spreading and to make its stockholders or members benefit from the results of its asset management. The US terminology is … Read more