Annual Reporting Posts

Blog posts from Annual Reporting Posts

Modifications of employee share-based payment IFRS 2

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Topics hide Modifications of employee share-based payment transactions Modifications Modifications that do not change classification of arrangement Increases in fair value of share-based payment Determining whether there is an increase in fair value of share-based payment Increases in number of equity instruments granted Case – Increase in number of equity instruments granted Beneficial modifications of … Read more

Determination of grant date in IFRS 2

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Topics hide Determination of grant date Approval and communication by the employer Case – Grant date and communication of a plan to the employees Meaning of ‘shared understanding’ Case – Grant date and determination of exercise price dependent on formula Acceptance by the employee Case – Annual acceptance and monthly reductions Grant date decision tree … Read more

Determination of the vesting period in IFRS 2

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Topics hide Determination of the vesting period Case – Service commencement date before grant date Graded vesting Case – Graded vesting Attribution to periods Case – Straight-line attribution and different reference periods Case – Straight-line attribution with challenging performance target Variable vesting period Market condition with variable vesting period Case – Market condition not met … Read more

Employee share purchase plans

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Topics hide Employee share purchase plans Case – Share purchase plan at fixed price for longer period Case – Impact of classification as true ESPP or as option plan Share purchases funded through loans Case – Share purchase funded through loan: Net settlement Case – Share purchase funded through loan: Gross settlement Determining assets to … Read more

Fair value employee share options in IFRS 2

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Topics hide Fair value employee share options Fair value ESOPs – Assumptions Fair value ESOPs – Expected volatility expected term Selecting inputs to option pricing models Share price Exercise price Expected volatility Historical volatility Implied volatility Expected dividends Risk-free rate Expected term Vesting and non-vesting conditions Restrictions on transferability Fair value employee share options Share … Read more

Employee cash-settled share-based payments in IFRS 2

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Topics hide Employee cash-settled share-based payments Overview Basic principles of accounting for cash-settled share-based payment transactions with employees Initial measurement Remeasurements Case – Cash-settled share-based payment transaction with change in value of equity instrument Capitalisation of the services received Case – Cash-settled share-based payment with capitalisation Case – Cash-settled share-based payment with service and market … Read more

Transfer pricing – IAS 12 Best complete read

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Topics hide Transfer pricing for transactions between related parties Arm’s length transaction principle OECD Transfer pricing methods Traditional Transaction Methods 1. Comparable Uncontrolled Price Method CUP example 2. The Resale Price Method Resale price example 3. The Cost Plus Method Cost plus example Transactional Profit Methods 4. The Comparable Profits Method Comparable profits transfer example … Read more

Equity – 2 understand it all at best

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Topics hide Equity 1. Equity the residual interest in the assets of the entity after deducting all its liabilities 1. Statement of Financial Position 2. Equity instrument is the contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities 2. Statement of Financial Position 3. Equity interests … Read more

Disclosure non-financial assets and liabilities example

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Topics hide Disclosure non-financial assets and liabilities example 8 Non-financial assets and liabilities 8(a) Property, plant and equipment 8(b) Leases 8(c) Investment properties 8(d) Intangible assets 8(e) Deferred tax balances 8(f) Inventories 8(g) Other assets and assets classified as held for sale 8(i) Provisions 8(j) Recognised fair value measurements Disclosure non-financial assets and liabilities example … Read more

Example Disclosure financial instruments

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Topics hide Example Disclosure financial instruments 7 Financial assets and financial liabilities 7(a) Trade receivables 7(b) Other financial assets at amortised cost 7(c) Financial assets at fair value through other comprehensive income 7(d) Financial assets at fair value through profit or loss 7(e) Cash and cash equivalents 7(f) Trade and other payables 7(g) Borrowings 7(h) … Read more