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cuongtd Last update 03/12/2019 Classification measurement and impairment of financial assets – IFRS 9 Financial Instruments (IFRS 9) introduced major accounting changes for financial assets that significantly impacted the financial statements of all types of lending organizations, such as banks, financial cooperations, and leasing companies. Here the focus is on classification and measurement – including impairment loss … Read more
Last update 17/11/2019 Discontinued operation – IFRS 5 Definition: A discontinued operation is a component of an entity that either has been disposed of or is classified as held for sale and: Represents a separate major activity or geographical area of operations, Is part of a single coordinated plan to dispose of a separate major activity … Read more
Last update 29/11/2019 Classification for investments in bonds – Under IFRS 9, bonds should be classified and measured based on an entity’s business model for managing the bonds and their contractual cash flow characteristics (SPPI Test) (see table below). The business model refers to how an entity manages bonds in order to generate cash flows—either … Read more
Last update 13/12/2019 Direct participating contracts – Insurance contracts with direct participation features are insurance contracts that are substantially investment-related service contracts under which an entity promises an investment return based on underlying items. [IFRS 17 B101] Hence, they are defined as insurance contracts for which: IFRS 17 B101 a) The contractual terms specify that … Read more
Last update 21/12/2019 Classification and Measurement of Financial Liabilities – The IFRS 9 requirements for the classification and measurement of financial liabilities are substantially unchanged from IAS 39 except for the following: Removal of the cost exception for derivative financial liabilities. Classification and Measurement of Financial Liabilities Changes in fair value as a result of … Read more
Last update 19/12/2019 IAS 33 Definition: Dilution is a reduction in earnings per share or an increase in loss per share resulting from the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions. IAS 33 Definition: Anti-dilution is an increase … Read more
Last update 16/09/2019 The following are a list of distinguished claims against an entity with a short explanation. Some claims take priority over other claims (‘are senior to’), which is also why the liquidation example is used. It also shows different types of equity claims, that also have a hierarchy between themselves regarding their seniority. … Read more
Last update 09/12/2019 Derivative novation refers to the replacement of one party to a derivative instrument with a new party, whereby the original party transfers all rights and obligations to the latter party. In some situations, the derivative instrument that is the subject of the novation might be designated as the hedging instrument in a hedging … Read more
Last update 11/12/2019 Topics hide Changes in significant accounting policies Related posts: Changes in significant accounting policies Notes to the consolidated financial statements1 The basis of preparation comprises the notes to the financial statement relating to: IAS 8 28 5. Changes in significant accounting policies2 The Group has initially applied IFRS 15 (see A) and … Read more
Last update 17/08/2019 IFRS 9 Definition: A financial instrument or other contract within the scope of IFRS 9 with all three of the following characteristics. its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other … Read more