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IFRS 10 Assessing control

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Last update 02/03/2020 IFRS 10 Assessing control B2 To determine whether it controls an investee an investor shall assess whether it has all the following: power over the investee; exposure, or rights, to variable returns from its involvement with the investee; and the ability to use its power over the investee to affect the amount … Read more

IAS 37 Recognition of provisions

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Last update 22/02/2020 Topics hide Provisions IAS 37 Recognition of provisions Present obligation Past event Probable outflow of resources embodying economic benefits Reliable estimate of the obligation Contingent liabilities Contingent assets Provisions IAS 37 Recognition of provisions 14 A provision shall be recognised when: an entity has a present obligation (legal or constructive) as a … Read more

About IFRS

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Last updated: 6 February 2019 According to the research periodically carried out by the IFRS Foundation, IFRS are a basis for preparation of financial statements for (most) public interest entities in 144 jurisdictions. Therefore, it is safe to say that they are used all over the world, with a notable exception of the USA, which … Read more

Transition from IAS 17 to IFRS 16

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Last updated: 20 January 2019 IFRS 16 introduces a few practical expedients at the date of its application and transition from IAS 17 as discussed below. Definition of a lease on initial application Entities are permitted not to reassess whether their contracts that are in force at the date of initial application of IFRS 16 … Read more

Lessor Accounting (IFRS 16)

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Last updated: 18 February 2020 Classification of leases Finance lease vs operating lease A lessor must classify each of its leases as either an operating lease or a finance lease (IFRS 16.61). This classification is based on the extent to which the lease transfers the risks and rewards resulting from ownership of an underlying asset. … Read more

Presentation and Disclosure of Leases (IFRS 16)

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Last updated: 22 December 2019 Statement of financial position Right-of-use assets and lease liabilities are presented separately in the statement of financial position or are disclosed in the notes. If the right-of-use assets are not presented separately, they should be included in the same line as is suitable for the underlying assets (IFRS 16.47-48). Profit … Read more

Sale and Leaseback Transactions (IFRS 16)

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Last updated: 22 December 2019 A sale and leaseback transaction is a transaction where one entity (seller-lessee) transfers an asset to another entity (buyer-lessor) and leases that asset back from the buyer-lessor (IFRS 16.98). For each sale and leaseback transaction, the seller-lessee should determine whether the transfer of an asset is a sale. This should … Read more

Lease Modifications (IFRS 16)

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Last updated: 22 December 2019 A lease modification is a change in the scope of a lease, or the consideration for a lease, that was not part of the original terms and conditions of the lease (IFRS 16.Appendix A). Examples of lease modifications are adding or terminating the right to use one or more underlying … Read more

Recognition and Measurement of Leases (IFRS 16)

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Last updated: 28 February 2020 At the commencement date, a lessee (a customer) recognises a right-of-use (‘RoU’) asset and a lease liability (IFRS 16.22). RoU is an asset representing lessee’s right to use the leased asset during the lease term. Initial measurement of the right-of-use asset Components of the right-of-use asset The right-of-use (‘RoU’) asset … Read more