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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
Government grants are assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. They exclude those forms of government assistance which cannot reasonably have a value placed upon them and transactions with government which … Read more
Topics hide Acquisitions and disposals – IFRS 3 Pharmaceutical and Life Sciences Disposals – Seller accounting for contingent consideration Buyers accounting for royalties and milestones payable to a seller in a business combination Acquisitions and disposals – IFRS 3 Pharmaceutical and Life Sciences Contingent consideration arrangements in acquisitions and disposals are common within the Pharmaceutical … Read more
Topics hide Contingent IFRS 3 Business combinations Buyer’s accounting for royalties and milestones payable to a seller in a business combination Contingent consideration in a business combination Assumed contingent consideration Compensation IFRIC 12 – Service Concession Arrangements Accounting model IFRS 16 Leases Lease Options to Extend or Terminate IAS 19 Employee benefits – Measurement Shared … Read more
Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding. 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 … Read more
Topics hide Designated hedged items Definition of hedged item Risk components of non-financial items Hedging groups of net positions Hedging layers of a group Aggregated exposures Designated hedged items This narrative provides an overview of the eligible hedged items that are permitted in IFRS 9. Definition of hedged item Under IFRS 9, a hedged item … Read more
Topics hide Designated hedging instruments Derivative financial instruments – Non-derivative financial instruments measured at fair value through P&L Embedded derivatives Purchased options Forward contracts Accounting for currency basis spreads Designated hedging instruments Most derivative financial instruments can be designated as hedging instruments, provided they are entered into with an external party. Intra-group derivatives or other … Read more
Fair Value Hedges In short – A fair value hedge is a hedge of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment, or components of any such item, that is attributable to a particular risk and could affect profit or loss. Fair value hedges recognize … Read more