Annual Reporting Posts

Blog posts from Annual Reporting Posts

IFRS 15 Industrial products revenue best and complete recognition

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Topics hide IFRS 15 Industrial products 1. Identify the contract with the customer Contract modifications Case – Widgets manufacturer 2. Identify performance obligations 3. Determine transaction price Volume rebates Volume discounts Consideration payable to a customer Case – Volume rebate Case – Prospective volume discount 4. Allocate transaction price 5. Determine transfer of control and … Read more

IFRS 15 Real estate Revenue complete and accurate recognition

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Topics hide IFRS 15 Real estate Key points IFRS 15 core principle Does a contract include more than one performance obligation? 1. Identify the contract(s) with the customer Contract combination Accounting for contract modifications Case – Unpriced change orders 2. Identification of performance obligations Real estate management – considerations Real estate developers – considerations Case … Read more

IFRS 15 Mining Revenue recognised properly and complete

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Topics hide IFRS 15 Mining Revenue Definition of a customer Production sharing arrangements Forward-selling contracts to finance development Product exchanges Interaction with other standards Agency relationships Principal versus agent considerations Delivery – CIF contracts or FOB contracts Cost insurance and freight (CIF contracts) Free on board (FOB contracts) Satisfaction of performance obligations Provisional pricing arrangements … Read more

Telecommunications – IFRS 15 Best complete read

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Topics hide Telecommunications Revenue The five-step model Specific topics Significant Financing Component Non-refundable upfront fees Warranty or additional services Costs to obtain a contract Case – Incremental costs of obtaining a contract — telecommunications industry Amortization of contract cost assets Telecommunications IFRS 15 Revenue from contracts with customers in the Telecommunications-industry main impact lies in … Read more

EBITDA – 1 Best complete read

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Topics hide EBITDA – Earnings before interest taxes depreciation and amortisation Origins of EBITDA Investment industry / M&A EBIT – an alternative EBITDA is close to cash flow EBITDA shows large positive numbers A conclusion Adjusted EBITDA Use EBITDA in a complete context Other metrics for measuring financial performance EBITDA EBITDA – Earnings before interest … Read more

Accounting for group share-based payment in IFRS 2

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Topics hide Accounting for group share-based payment transactions Consequences of different classification in different financial statements Accounting by receiving entity with no obligation to settle Accounting by direct parent that settles Equity-settled transactions Case – Illustration of parent and subsidiary accounting Cash-settled transactions Accounting by ultimate parent that settles Case – Ultimate parent settling transaction … Read more

Classify Group share-based payments in IFRS 2

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Classify Group share-based payments Classification principles Once an entity has determined that a share-based payment transaction is in the scope of IFRS 2 (see Definition and scope), it then determines the classification of the transaction. Classification of the share-based payment transaction depends on the nature of the award granted and whether the entity has an … Read more

IFRS 2 Group share-based payments

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Topics hide IFRS 2 Share-based Payment IFRS 2 Group share-based payments IFRS 2 Share-based Payment IFRS 2 Group share-based payments Share-based payment transactions among group entities (2009 amendments) 43A For share-based payment transactions among group entities, in its separate or individual financial statements, the entity receiving the goods or services shall measure the goods or … Read more

Group share-based payments

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Topics hide Group share-based payments Overview Introduction Definition and scope Group share-based payment transactions settled by group entity Case – Parent grants its own shares to employees of its subsidiaries Case – Parent grants a cash payment based on its own shares to employees of its subsidiaries Case – Intermediate holding company grants ultimate parent’s … Read more

Consolidated definition

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Topics hide Consolidated definition Control 1 Power 1.1 Relevant activities Q&A Question 3 – Can decisions made when an entity is formed be considered as relevant activities? 1.2 Potential voting rights Q&A 1.3 Structured entities Q&A 2 Exposure to variability Q&A Question 9 –What types of instrument absorb variability from an investee, and which instruments … Read more