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cuongtd Debt instruments with par prepayment features that give rise to compensation being paid to the party triggering the possibility to be measured at amortised cost or fair value through other comprehensive income (FVOCI) in certain circumstances. Instruments with certain par prepayment features If a financial asset would otherwise meet the SPPI test, but fails to … Read more
Use back button from the brower Last Updated on 28/02/2021 by 75385885 The solely payments of principal and interest (SPPI) test requires that the contractual terms of the financial asset (as a whole) give rise to cash flows that are solely payments of principal and interest on the principal amounts outstanding ie cash flows that … Read more
Risk and Rewards Test and Control Test are, in combination, used to validate the accounting for a transfer of a financial asset under IFRS 9 Financial instruments. Based on criteria in previous steps it has been concluded that an entity has transferred a financial asset using the following decision tree (see IFRS 9 B3.2.1): Risk … Read more
Use back button from the brower Last Updated on 21/03/2021 by 75385885 An accounting mismatch could occur where, in the absence of the fair value option, a financial asset would be classified as available for sale (with most changes in fair value recognised directly in equity) while a related liability is measured at amortised cost … Read more
Topics hide Identifying an asset group for valuation purposes Identifying an asset group for valuation purposes Identifying an asset group Identifying an asset group for valuation purposes is a starting point as one of many scenarios in considering the sale of (part of) a business. An entity acquires assets and assumes liabilities in a business … Read more
Use back button from the brower Last Updated on 27/02/2021 by 75385885 An entity values assets, liabilities and its own equity instruments assuming a transaction in the principal market for the asset or liability – i.e. the market with the greatest volume and level of activity. In the absence of a principal market, it is … Read more
Topics hide Understanding related party disclosures Disclosure requirements Exemption from disclosure (IAS 24 25) Disclosure requirements when an exemption applies Example – Understanding related party disclosures Example disclosures Understanding related party disclosures Understanding related party disclosures Example Understanding related party disclosures shows two disclosures of related-party transactions. Here is a real life disclosure from Petrobas … Read more
Use back button from the brower Last Updated on 28/02/2021 by 75385885 In IFRS 9 a simplified impairment model is allowed for the following financial assets: Trade receivable and contract assets without a significant financing component, and Other long term trade receivables, contract assets and lease receivables. For trade receivables and contract assets that do … Read more
Topics hide IFRS 10 Assessing de facto control Example case All these criteria can be negative and still there is an entity de facto in control or not!! Let’s see how such an assessment is made… Does investor G have control of entity D? Investor G does not seem to control entity D in this … Read more
Control in debt restructuring in Structured entity provides a case of obtaining control in a transaction. Following is a case on the assessment whether certain stakeholders in a transaction/structure have obtained control over a certain entity in the transaction in line with the requirements of IFRS 10 Consolidated financial statements. Only one stakeholder can be … Read more