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Cost of self-constructed assets

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Last update 25/11/2019 IAS 16 22 sets out the core principle for determining the cost of self-constructed assets. Here is a very practical example to quickly understand and solve any IFRS issues. The cost of a self-constructed asset is determined using the same principles as applicable to an purchased asset. If an entity makes similar … Read more

Highly probable

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Last update 09/09/2019 IFRS Definition –  Highly probable: Significantly more likely than probable. IFRS Definition –  Probable: More likely than not. Other probability qualifications used in IFRS Standards are: Unlikely, Highly unlikely, Highly likely, Likely, More likely than not, Most likely, More likely and Virtually certain. Looking at the statistical data below, highly probable would … Read more

Correct presentation of revenue in IFRS 15

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Last update 07/11/2019 Correct presentation of revenue in IFRS 15 provides explicit presentation requirements, which are quite detailed and increase the volume of required disclosures that entities have to include in their interim and annual financial statements. Many of the requirements in IFRS 15 involve information that entities did not previously disclose, all in all … Read more

Highest and best use

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Last update 05/01/2020 Highest and best use is the use of a non-financial asset by market participants that would maximise the value of the asset or the group of assets and liabilities (eg a business) within which the asset would be used. Here is the way real estate manager use this definition, which should be … Read more

Corporate taxes

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Last update 22/12/2019 Corporate taxes – also called income taxes, but than for corporates. Here we go…………  Just a reminder …… Two things in life are certain: …… DEATH……. and ……..TAXES Topics hide What is it about? Current tax – Recognition and measurement Deferred tax – Recognition and measurement Deferred tax assets Deferred tax liabilities Corporate … Read more

Held-to-maturity investments

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Last update 16/05/2019 This is an IAS 39 definition, under IFRS 9 replaced by Investments to ‘hold to collect’. Non-derivative financial assets with fixed or determinable payments and fixed maturity that an entity has the positive intention and ability to hold to maturity other than: Those that the entity upon initial recognition designates as at … Read more

Cookie Policy

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Last update 01/10/2019 This site uses cookies – small text files that are placed on your machine to help the site provide a better user experience. In general, cookies are used to retain user preferences, store information for things like shopping carts, and provide anonymised tracking data to third party applications like Google Analytics. As … Read more

Held-to-maturity financial assets – Example

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Last update 17/08/2019 Held-to-maturity financial assets have passed the SPPI test (solely payment of principal and interest) and the business model test (Held to collect). Held-to-maturity financial assets are measured at amortized cost, using the effective interest method, less any impairment. IFRS Definition- Amortised cost: The amount at which the financial asset or financial liability … Read more

Convertible notes Basic requirements

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Last update 26/11/2019 Convertible notes Basic requirements is a introduction of an important financing arrangement for high tech start ups all over the world. Convertible notes are financial instruments that fall within the scope of IAS 32 Financial Instruments: Presentation and IFRS 9 Financial Instruments. IAS 32 contains the definitions of financial liabilities, financial assets … Read more

Held for trading

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Last update 17/08/2019 A financial asset or financial liability that: is acquired or incurred principally for the purpose of selling or repurchasing it in the near term; on initial recognition is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or is … Read more