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cuongtd Last update 30/11/2019 Assets as an element of financial statements – Definition: An asset is a present economic resource controlled by the entity as a result of past events. Assets as an element of financial statements An economic resource is a right that has the potential to produce economic benefits. Assets as an element of … Read more
Last update 09/12/2019 Contingencies – There are three (general) definitions of a contingency: IAS 37 – Provisions, contingent liabilities and contingent assets An existing situation whose result is unknown or unpredictable, A possible event that must be prepared for, A condition that must be satisfied before an action is triggered, an agreement is effected, a … Read more
Last update 25/11/2019 Asset-based business valuations are one of the most used valuation approaches in accounting. The asset accumulation method and the adjusted net asset method are both generally accepted business valuation methods of the asset-based business valuation approach. When properly applied using consistent valuation variables, all asset-based business valuation approach methods should conclude approximately … Read more
Last update 27/12/2019 Under IFRS 15 revenue recognition is handled under a 5-step model, as follows: Identify contract with the customer; Identify the performance obligations in the contract; Determine the transaction price; Allocate the transaction price to the performance obligations in the contract; Recognize revenue when (or as) an entity satisfy a performance obligation. A … Read more
Last update 30/11/2019 Asset accumulation valuation example – The asset accumulation method and the adjusted net asset method are both generally accepted business valuation methods of the asset-based business valuation approach. Here is an example of the asset accumulation method: A valuation expert has been retained to estimate the fair market value of the total … Read more
Last update 24/08/2019 IFRS 10 Definition The financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity. Parent – An entity that controls one or more entities. The other types of financial statements are … Read more
Last update 27/10/2019 The assessment of investment entities is documenting whether an entity meets the definition, all facts and circumstances should be considered, including the entity’s purpose and design [IFRS 10 B85A]. It will often be straightforward to determine whether an entity is an investment entity. However, in view of the fundamental importance this assessment … Read more
Last update 06/01/2020 Concise information – Other things being equal, where information is concerned, the shorter the better……… or better, it is a balancing act, full of dilemma’s simple but not too……….. brief but comprehensive? compact but understandably……. In a nutshell it is about to make a long story short……. Succinct and to the point, … Read more
Last update 06/12/2019 Assessing information quality for measurement – The Conceptual Framework provides the foundation for Standards and Accounting Guidelines that: contribute to transparency by enhancing the comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions. strengthen accountability by reducing the information gap between the providers of … Read more
Last update 04/08/2019 An enhancing qualitative characteristic that enables users to identify and understand similarities in, and differences among, items. The Conceptual Framework provides the following guidance [Conceptual Framework 2.24 – 2.29]: Users’ decisions involve choosing between alternatives, for example, selling or holding an investment, or investing in one reporting entity or another. Consequently, information … Read more