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cuongtd Last update 05/01/2020 IFRS 13 Definition of expected cash flow: The probability-weighted average (ie mean of the distribution) of possible future cash flows. Context Topics hide Estimated cash flow and expected cash flow Expected cash flow Estimated cash flow and expected cash flow In the past, accounting pronouncements have used the terms estimated cash flow … Read more
Last update 30/11/2019 Consolidated or unconsolidated financial statements – Consolidated financial statements provide information about the assets, liabilities, equity, income and expenses of both the parent and its subsidiaries as a single reporting entity. That information is useful for existing and potential investors, lenders and other creditors of the parent in their assessment of the … Read more
Last update 27/12/2019 The expected attrition rate is used in valuing customer-related assets using the Multi-period excess earnings method (MPEEM), a discounted cash flow model, the valuation expert should identify the portion of revenue expected to be generated through repeat customers existing as of the valuation date. The estimated future revenue is derived from the … Read more
Last update 03/12/2019 Considerations for cloud arrangements – Cloud services arrangements may include the cloud services (such as software-as-a-service (SaaS)) or other products or services. These arrangements also frequently include a licence of the software, for which the customer may (or may not) have the right to take possession. Cloud services entities also frequently offer … Read more
Last update 05/01/2020 Exit price Entry price IFRS 13 Definition – Exit price: The price that would be received to sell an asset or paid to transfer a liability. Exit price Entry price IFRS 13 Definition – Entry price: The price paid to acquire an asset or received to assume a liability in an exchange … Read more
Last update 04/12/2019 Consideration transferred and Goodwill – I could not obtain a good understanding on ‘Consideration transferred’ from IFRS 3 Business combinations sub 32. So I started writing this piece of text. As per IFRS 3 Consideration transferred is as follows: The acquirer shall recognise goodwill as of the acquisition date measured as the … Read more
Last update 10/08/2019 Uncertainty about whether an asset or a liability exists. Further explanations: There are sections in IFRS that discuss cases in which it is uncertain whether an asset or liability exists. In some cases, that uncertainty, possibly combined with a low probability of inflows or outflows of economic benefits and an exceptionally wide … Read more
Last update 30/09/2019 IFRS 15 Revenue from Contracts with Customers (contents page is here) introduced a single and comprehensive framework which sets out how much revenue is to be recognised, and when. The core principle is that a vendor should recognise revenue to depict the transfer of promised goods or services to customers in an … Read more
Last update 10/08/2019 A contract that is equally unperformed: neither party has fulfilled any of its obligations, or both parties have fulfilled their obligations partially and to an equal extent. The Conceptual Framework provides the following guidance [Conceptual Framework 4.57 – 4.58]: An executory contract establishes a combined right and obligation to exchange economic resources. … Read more
Last update 11/11/2019 Many entities make payments to their customers. In some cases, the consideration paid or payable to a customer represents purchases by the entity of goods or services offered by the customer that satisfy a business need of the entity. In other cases, the consideration paid or payable represents incentives given by the … Read more