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Blog posts from Annual Reporting Posts
Contract enforceability and termination clauses is about those troubles, get your money as entitled or end a contract before you lose too much money. Contract enforceability of rights (AND obligations) in a contract is a matter of law. An entity has to determine the duration of the contract (i.e., the stated contractual term or a … Read more
Topics hide SPAC Merger Is the transaction a business combination? Accounting when the transaction is not a business combination Accounting when the transaction is a business combination Further considerations Identifying the accounting acquirer Is the acquisition a business combination? Developing an accounting policy when the listed shell is not a business Can the accounting simply … Read more
M and A or Mergers and Acquisitions in IFRS language Business Combinations. 1 Identifying a business combination IFRS 3 refers to a ‘business combination’ rather than more commonly used phrases such as takeover, acquisition or merger because the objective is to encompass all the transactions in which an acquirer obtains control over an acquiree no … Read more
Topics hide A Basic Guide to Cash Flow Forecasting What is Cash Flow Forecasting? Building Out Cash Flow Scenario Models How to Improve the Accuracy of Your Cash Flow Forecast Where are cash flow forecasting techniques used in IFRS? Goodwill impairment test – Telecom industry Carrying amount Recoverable amount Fair value less costs to sell … Read more
Topics hide What is initial public offering Back-door listings Disclosure of key judgements Cost of initial public offering IPO costs cash flow classification Share-based payments at IPO What is initial public offering An Initial Public Offering (IPO) comprises of a privately owned business that wants access the public capital market through the sale of securities … Read more
Sub-leases under IFRS 16 The classification guidance in IFRS 16 means that many sub-leases are finance leases, impacting the financial position and financial performance of intermediate lessors. 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 lease (or … Read more
An entity that provides the right to use an underlying asset for a period of time in exchange for consideration. 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 … Read more
Topics hide IFRS 16 Lessor accounting 1. Lessor accounting model 2. Lease classification 3. Operating lease model 4. Finance lease model 5. Presentation and disclosure 5.1 Lessor presentation 5.2 Lessor disclosure IFRS 16 Lessor accounting Lessors continue to classify leases as finance or operating leases. 1. Lessor accounting model The lessor follows a dual accounting … Read more
Topics hide Lessee accounting under IFRS 16 1. Lessee accounting model 2. Initial measurement of the lease liability 2.1 Lease payments 2.3 Discount rate 3. Initial measurement of the right-of-use asset 4. Subsequent measurement of the lease liability 4.1 Measurement basis 4.2 Remeasurement of the lease liability 5 Subsequent measurement of the right-of-use asset 5.1 … Read more
Topics hide IAS 36 Impairment of assets IAS 36 Recognising and measuring an impairment loss IAS 36 Impairment of assets IAS 36 Recognising and measuring an impairment loss 58 Paragraphs 59–64 set out the requirements for recognising and measuring impairment losses for an individual asset other than goodwill. Recognising and measuring impairment losses for cash-generating … Read more