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cuongtd Last update 22/12/2019 Change in accounting policy – Oil and natural gas properties, including related pipelines, are depreciated using a unit-of-production method. The cost of producing wells is amortized over proved developed reserves. License acquisition, common facilities and future decommissioning costs are amortized over total proved reserves. The unit-of-production rate for the depreciation of common … Read more
Last update 06/08/2019 A debt instrument is a paper or electronic obligation that enables the issuing party to raise funds by promising to repay a lender in accordance with terms of a contract. Types of debt instruments include notes, bonds, debentures, certificates, mortgages, leases or other agreements between a lender and a borrower. These instruments … Read more
Last update 09/12/2019 De minimis or non-genuine features – A contractual cash flow characteristic does not affect the classification of a financial asset if it could have only a de minimis effect on the contractual cash flows of the financial asset. To make this determination, an entity considers the possible effect of the contractual cash … Read more
Last update 21/12/2019 Challenges in financial reporting – There are specific problems that affect the different bases of measurement available to financial reporting: historical cost, value to the business, fair value, realisable value and value in use. How the different bases work will be considered separately, but it will be helpful to look first at … Read more
Last update 05/01/2020 The de facto agent assessment is part of IFRS 10 Consolidated financial statements (i.e. assessment of control over an investee for consolidation purposes), the de facto agent is a party engaged to act on behalf of another party (the principal). A principal may delegate some of its decision authority over the investee … Read more
Last update 14/11/2019 Cash-flow-based measurement techniques are widely used in measurement of fair values by valuation experts. Fair value is many times determined indirectly using measurement techniques, for example, cash-flow-based measurement techniques, reflecting all the following factors: estimates of future cash flows. Cash-flow-based measurement techniques possible variations in the estimated amount or timing of future … Read more
Last update 17/11/2019 Customer relationships Distributor Method is a valuation model to determine the value of the existing customer relationships portfolio in a business combination, in order to recognise it as an intangible assets other than goodwill. Customer relationships Distributor Method The Distributor Method (DM) is not as commonly used as the Multi-period excess earnings … Read more
Last update 23/12/2019 IAS 1 Presentation of financial statements paragraph 32 prohibits the offset of assets and liabilities, and income and expense, unless this is specifically required or permitted by another IFRS. IAS 7 13 – 17 sets out requirements for, and examples of, individual cash inflows and outflows that are to be presented separately … Read more
Last update 06/08/2019 An entity shall classify an asset as a current asset when: It expects to realise the asset, or intends to sell or consume it, in its normal operating cycle; It holds the asset primarily for the purpose of trading it; It expects to realise the asset within twelve months after the reporting … Read more
Last update 22/12/2019 Cash flows identification Only Principal and interest – Cash flows solely payments of principal and interest on the principal amount The following examples illustrate contractual cash flows that are solely payments of principal and interest on the principal amount outstanding. For the context within IFRS 9: Financial Instruments, reference is made to … Read more