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Topics hide Amortised cost and the effective interest method Calculating amortised cost Calculating the EIR 1. General approach 2 Credit-adjusted EIR 3 Calculating interest revenue and expense using the EIR 4 Revisions to estimated cash flows 5 Modifications of financial assets Amortised cost and the effective interest method This narrative explores the factors that an … Read more
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 for any loss allowance. IFRS … Read more
The rate of interest that causes the present value of (a) the lease payments and (b) the unguaranteed residual value to equal the sum of (i) the fair value of the underlying asset and (ii) any initial direct costs of the lessor. IFRS terms or definitions come from the Official Journal … Read more
Payments made by a lessor to a lessee associated with a lease, or the reimbursement or assumption by a lessor of costs of a lessee. IFRS terms or definitions come from the Official Journal of the European Union (© European Union, https://eur-lex.europa.eu). Individual jurisdictions around the world may require or permit … Read more
The removal of a previously recognised financial asset or financial liability from an entity’s statement of financial position. IFRS terms or definitions come from the Official Journal of the European Union (© European Union, https://eur-lex.europa.eu). Individual jurisdictions around the world may require or permit the use of (locally authorised and/or amended) … Read more
Topics hide IFRS Reporting for Battery Storage – A Burgeoning Industry What is important in IFRS Reporting for Battery Storage? Research and Development Intangible assets (other than goodwill) TRANSFERS OF FINANCIAL ASSETS GOODWILL NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS COMMITMENTS IFRS Reporting for Battery Storage – A Burgeoning Industry Batteries have been around … Read more
Topics hide Purchased and originated credit-impaired financial assets Initial measurement credit-impaired financial assets Subsequent measurement credit-impaired financial assets Modified contractual cash flows Day 1 loss Credit-adjusted EIR Calculating credit-impaired interest revenue and expense Purchased and originated credit-impaired financial assets Purchased and originated credit-impaired financial assets are those for which one or more events that have … Read more
Topics hide IFRS 9 Financial instruments IFRS 9 Appendix B Reclassification of financial assets IFRS 9 Financial instruments IFRS 9 Appendix B Reclassification of financial assets B4.4.1 Paragraph 4.4.1 requires an entity to reclassify financial assets if the entity changes its business model for managing those financial assets. Such changes are expected to be very … Read more
Interest free loans As prescribed in IFRS 9.B5.1.1, a loan payable or receivable that carries no interest should be recognised at fair value measured as the present value of all future cash receipts discounted using the prevailing market rate(s) of interest for a similar instrument (currency, term, etc.) with a similar credit rating. An incremental … Read more
Government assistance is action by government designed to provide an economic benefit specific to an entity or range of entities qualifying under certain criteria. Government assistance for the purpose of this Standard does not include benefits provided only indirectly through action affecting general trading conditions, such as the provision of infrastructure in development areas or … Read more