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cuongtd Last updated: 15 March 2020 Definition of PP&E Property, plant and equipment (‘PP&E’) are tangible items that (IAS 16.6): are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and are expected to be used during more than one period. Accounting treatment for PP&E … Read more
Last update 07/02/2020 Overview 10 For equity-settled share-based payment transactions, the entity shall measure the goods or services received, and the corresponding increase in equity, directly, at the fair value of the goods or services received, unless that fair value cannot be estimated reliably. If the entity cannot estimate reliably the fair value of the … Read more
Last updated: 3 April 2020 Recognition of current tax liabilities and current tax assets Current income tax is the amount of income taxes payable to (or recoverable from) tax authorities in respect of the taxable profit (tax loss) for a period (IAS 12.5). Current income tax and deferred income tax comprise total tax expense in … Read more
Last updated: 3 April 2020 Deferred income tax is recognised under IAS 12 to account for differences between tax base of an asset or a liability and its carrying amount. Deferred income tax and current income tax comprise total tax expense in the income statement. Temporary differences Definition of temporary differences The notion of temporary differences … Read more
Last updated: 3 April 2020 Scope of IAS 12 – overview IAS 12 prescribes accounting for income taxes (current and deferred). Income taxes include all domestic and foreign taxes which are based on taxable profits (IAS 12.2). Taxes other than income taxes are accounted for under other IFRS, e.g. IAS 37 or IAS 19 (payroll … Read more
Last update 12/06/2020 Best start with IFRS and US GAAP – Many of the world’s capital markets now require IFRS, or some form thereof, for financial statements of public-interest entities. The remaining major capital markets without an IFRS mandate are: The US, with no current plans to change Best start with IFRS and US GAAP … Read more
Last updated: 18 May 2020 Materiality concept Materiality is a crucial concept in financial reporting. A requirement in IFRS (including disclosure) need not be applied if the effect of not applying it is immaterial (see paragraph 8 of IFRS Practice Statement 2 Making Materiality Judgements). Under IFRS, ‘Information is material if omitting, misstating or obscuring … Read more
Last updated: 14 May 2020 IAS 8 covers: selecting and applying accounting policies and accounting for changes in accounting policies, changes in accounting estimates, corrections of prior period errors. In addition to IAS 8, the IASB has issued Guide to Selecting and Applying Accounting Policies. Accounting policies Definition of accounting policies Accounting policies are defined … Read more
Last updated: 16 April 2020 Statement of cash flows presents inflows and outflows of cash and cash equivalents and is dealt with in IAS 7. The statement of cash flows is required to be presented by all entities for each period for which financial statements are presented. Under IAS 7, cash flows are classified into … Read more