Annual Reporting Posts

Last update 12/02/2020 25 Cash flows arising from transactions in a foreign currency shall be recorded in an entity’s functional currency by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the cash flow. 26 The cash flows of a foreign subsidiary shall … Read more

Last update 12/02/2020 10 The statement of cash flows shall report cash flows during the period classified by operating, investing and financing activities. 11 An entity presents its cash flows from operating, investing and financing activities in a manner which is most appropriate to its business. Classification by activity provides information that allows users to … Read more

Last update 20/02/2020 Topics hide Qualifying items Designation of hedged items Risk components Components of a nominal amount Relationship between components and the total cash flows of an item Qualifying items B6.3.1 A firm commitment to acquire a business in a business combination cannot be a hedged item, except for foreign currency risk, because the … Read more

Last update 07/02/2020 7 The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if: it is probable that future economic benefits associated with the item will flow to the entity; and the cost of the item can be measured reliably. 8 Items such as spare … Read more

Last update 10/02/2020 Separating components from an insurance contract (paragraphs 10–13) Investment components (paragraph 11(b)) B31 Paragraph 11(b) requires an entity to separate a distinct investment component from the host insurance contract. An investment component is distinct if, and only if, both the following conditions are met: the investment component and the insurance component are … Read more

Last update 10/02/2020 Objective 1 IFRS 17 Insurance Contracts establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of the Standard. The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents those contracts. This information gives a basis for users of financial … Read more

Last update 25/02/2020 Use of a presentation currency other than the functional currency Translation to the presentation currency 38 An entity may present its financial statements in any currency (or currencies). If the presentation currency differs from the entity’s functional currency, it translates its results and financial position into the presentation currency. For example, when … Read more

Last update 20/02/2020 29 An entity shall choose either the cost model in paragraph 30 or the revaluation model in paragraph 31 as its accounting policy and shall apply that policy to an entire class of property, plant and equipment. 29A Some entities operate, either internally or externally, an investment fund that provides investors with … Read more

Last update 03/02/2020 Definition of a business (application of paragraph 3) [changed May 2019] B7 A business consists of inputs and processes applied to those inputs that have the ability to contribute to the creation of outputs. The three elements of a business are defined as follows (see paragraphs B8–B12D for guidance on the elements … Read more

Last update 03/02/2020 B20 In some contracts, an entity transfers control of a product to a customer and also grants the customer the right to return the product for various reasons (such as dissatisfaction with the product) and receive any combination of the following: a full or partial refund of any consideration paid; a credit … Read more