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cuongtd Last update 21/12/2019 The adjusted net asset method is used to value a business based on the difference between the fair market value of the business assets and its liabilities. Depending on the particular purpose or circumstances underlying the valuation, this method sometimes uses the replacement or liquidation value of the company assets less the … Read more
Last update 04/01/2020 IAS 19 Definition: Asset ceiling – The asset ceiling is the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the defined benefit plan. Net defined benefit liability (asset) – The net defined benefit liability (asset) is the deficit or … Read more
Last update 02/11/2019 Entities often acquire non-current assets exclusively with a view to disposal/sale (or acquisitions exclusively with a view to disposal). Such a non-current asset will be classified as held-for-sale at the date of the acquisition only if it is anticipated that it will be sold within the one-year period, and it is highly … Read more
Last update 18/11/2019 IFRS 9 Definition of amortised cost: The amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted … Read more
Last update 22/12/2019 Acquisition of investment properties – When should a purchase of investment property (or properties) be accounted for as a business combination, and when as a simple asset purchase? This is an important issue because the IFRS accounting requirements for a business combination are very different from asset purchases. Acquisition of investment properties … Read more
Last update 06/12/2019 Agriculture-related definitions IAS 41 Definition Agricultural activity: The management by an entity of the biological transformation and harvest of biological assets for: Sale; Distribution at no charge or for a nominal charge; or Conversion into agricultural produce or into additional biological assets for sale or for distribution at no charge or for … Read more
Last update 17/12/2019 Acquisition of insurance contracts – Insurance contracts may be acquired in a transfer (often referred to as a portfolio transfer) or in a business combination, as defined in IFRS 3 Business Combinations. In summary, insurance contracts acquired in a transfer or a business combination are classified and measured in the same way … Read more
Last update 02/08/2019 IAS 41 Definition: The management by an entity of the biological transformation and harvest of biological assets for: Sale; Distribution at no charge or for a nominal charge; or Conversion into agricultural produce or into additional biological assets for sale or for distribution at no charge or for a nominal charge. Agricultural … Read more
Last update 02/12/2019 Accounting treatment acquisition of a business or assets – An entity has to determine whether a transaction or other event is a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the assets acquired are not a business, the reporting entity shall account for the transaction … Read more
Last update 31/07/2019 The adding together of individual items that share characteristics and are classified together. Materiality and aggregation An entity shall present separately each material class of similar items. An entity shall present separately items of a dissimilar nature or function unless they are immaterial. [IAS 1 29] Financial statements result from processing large … Read more