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Blog posts from Annual Reporting Posts
Topics hide Definition of Material Applying materiality when preparing financial statements, by: Materiality as a filter Definition of Material Amendments on accounting policy disclosures Definition of Material The Definition of Material (with amendments to IAS 1 and IAS 8) puts the spotlight on: Applying materiality when preparing financial statements, by: Encouriging IFRS reporting specialists to … Read more
Topics hide Landlord Lease modifications / Rental modifications 1 Modifications to operating leases – General considerations 2. Modifications to operating leases related to COVID-19 3 Changes to operating leases that are not lease modifications 4 Changes to operating leases that are not lease modifications 5 Modifications to finance leases 5.1 Separate lease 5.2 Not a … Read more
Topics hide Focus definition or Trends in IFRS reporting Example Report Corp. (IAS 1.49, IAS 1.51(a)) Structure of the notes Materiality matters 1. Example Report Corp. How did we arrive at these numbers? What are the risks included in these financial statements? How is the Group/Company organised? What are the conditional items not yet recognised? … Read more
Sub-leases of real estate New classification guidance means that more sub-leases are finance leases under IFRS 16 than previously, impacting the financial position and financial performance of intermediate landlords. A sub-lease is a transaction in which a lessee (or ‘intermediate lessor’) grants a right to use the underlying asset to a third party, and the … Read more
Topics hide Lease calculation The 5-step lease calculations model Step 1. Identification of a lease contract Step 2 Lease term Lease Options to Extend or Terminate Reassessment of Lease Term Step 3 Initial measurement of the lease liabilty Right-of-Use Asset Subsequent Measurement of Lease Liability Step 4 Historical reporting Step 5 Historical changes to the … Read more
The total period of time that an asset is used to fulfil a contract with a customer (including any non-consecutive periods of time). 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 … Read more
The date on which a lessor makes an underlying asset available for use by 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 the use of (locally authorised and/or amended) IFRS Standards … Read more
Topics hide Landlord lease definition 1 Overview 3 Typical real estate arrangements Landlord lease definition Identifying a lease of real estate is usually straightforward – but some scenarios will require judgement. 1 Overview A lease is a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for … Read more
Topics hide Sale-and-leaseback of real estate Sale-and-leaseback Buyer-landlord Seller-tenant Case – Buyer-landlord accounting for a sale-and-leaseback transaction when transfer is a sale Case – Buyer-landlord accounting for a sale-and-leaseback transaction when transfer is not a sale Food for thought – How does a buyer-landlord assess whether a transaction qualifies for sale-and-leaseback accounting? Food for thought … Read more
Topics hide Leased investment property Food for thought – How does the accounting for leased investment properties differ under IFRS 16? Food for thought – Are there special rules for accounting for right-of-use investment property? Food for thought – How does a landlord apply the fair value model to a right-of-use asset? Leased investment property … Read more