cuongtd

Cash flows for income tax and sales tax

by

Last update 22/12/2019 Cash flows for income tax and sales tax – IAS 7 includes some specific standards for the treatment of cash flows in the Statement of cash flows for income tax and sales tax (and other taxes). Topics hide (i) Income taxes (ii) Sales taxes Direct method Cash flows for income tax and … Read more

Credit-impaired financial asset

by

Last update 25/11/2019 Credit-impaired financial asset A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired include observable data about the following events: the significant financial difficulty of the issuer or the borrower; Credit-impaired financial … Read more

Cash Flow Risk Management

by

Last update 22/12/2019 Cash Flow Risk Management The risk that companies must identify and manage is their cash flow risk, meaning uncertainty about their future cash flows. Finance theory is, for the most part, silent about how much cash flow risk a company should take on. Company Cash Flow Risk Management In practice, however, managers … Read more

Credit-adjusted effective interest rate

by

Last update 14/12/2019 Credit-adjusted effective interest rate – The rate that exactly discounts the estimated future cash payments or receipts through the expected life of the financial asset to the amortised cost of a financial asset that is a purchased or originated credit-impaired financial asset. When calculating the credit-adjusted effective interest rate, an entity shall … Read more

Cash flow hedge of a net position

by

Last update 27/11/2019 Cash flow hedge of a net position has changed from IAS 39 to IFRS 9, this section illustrates these changes for hedge accounting of a net position, by discussing the application under IAS 39 and the changes thereto under IFRS 9. Many entities are exposed to foreign exchange risk arising from purchases … Read more

Credit derivatives

by

Last update 20/11/2019 Credit derivatives allow a lender or borrower to transfer the default risk of a loan to a third party. Though the terms differ from one credit derivative to another, the general procedure is for a lending party to enter into an agreement with a counterparty (usually another lender), who agrees, for a fee, to cover any losses incurred in the event … Read more

Case value intangibles in business combinations

by

Last update 13/11/2019 Case value intangibles in business combinations provides a comprehensive business case of valuation of an acquisition of a regional provider of professional services, ProfServCo. The following intangible assets were identified as of the date of the combination: Trade name Case value intangibles in business combinations Service concession number Case value intangibles in … Read more

Cost of Property plant and equipment

by

Last update 29/12/2019 Cost of Property plant and equipment – The cost of an item of property, plant and equipment comprises: Cost of Property plant and equipment its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates. Cost of Property plant and equipment any costs directly attributable to bringing … Read more

Case IFRS 16 Lease car contract

by

Last update 23/12/2019 Case IFRS 16 Lease car contract – Because this is a quite frequently used type of lease it is good to get an understanding of how to apply IFRS 16 on a car lease. This includes all the detailed calculations in spreadsheet examples (including Excel functions used) needed to record the correct … Read more

Corporate asset-backed security

by

Last update 29/12/2019 Corporate asset-backed security – backed by the cash flows from receivables such as leases on aircraft or other corporate equipment, small and medium enterprise (SME) loans, trade receivables. Also includes ‘whole business’ securities (WBS) based on the cash flows of an entire business unit, such as franchise or brand royalties. An asset-backed … Read more