Annual Reporting Posts

Last update 05/02/2020 Application of the equity method 16 An entity with joint control of, or significant influence over, an investee shall account for its investment in an associate or a joint venture using the equity method except when that investment qualifies for exemption in accordance with paragraphs 17–19. Exemptions from applying the equity method … Read more

Objective 1 The objective of this IFRS is to establish principles for financial reporting by entities that have an interest in arrangements that are controlled jointly (ie joint arrangements). Meeting the objective 2 To meet the objective in paragraph 1, this IFRS defines joint control and requires an entity that is a party to a … Read more

Last update 08/02/2020 65 Paragraphs 66–108 and Appendix C set out the requirements for identifying the cash-generating unit to which an asset belongs and determining the carrying amount of, and recognising impairment losses for, cash-generating units and goodwill. Identifying the cash-generating unit to which an asset belongs 66 If there is any indication that an … Read more

Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit. (IAS 36 6) OR The present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. … Read more

The amount obtainable from the sale of an asset or cash-generating unit in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.

Last update 15/02/2020 IAS 37 Disclosure Provisions and Contingencies 84 For each class of provision, an entity shall disclose: the carrying amount at the beginning and end of the period; additional provisions made in the period, including increases to existing provisions; amounts used (ie incurred and charged against the provision) during the period; unused amounts … Read more

Last update 18/02/2020 Topics hide Initial measurement Subsequent measurement Investments in equity instruments and contracts on those investments Amortised cost measurement Effective interest method Transaction costs Write-off Initial measurement B5.1.1 The fair value of a financial instrument at initial recognition is normally the transaction price (ie the fair value of the consideration given or received, … Read more

Last update 26/02/2020 Topics hide 6.1 Objective and scope of hedge accounting 6.2 Hedging instruments Qualifying instruments Designation of hedging instruments 6.3 Hedged items Qualifying items Designation of hedged items 6.4 Qualifying criteria for hedge accounting 6.5 Accounting for qualifying hedging relationships Fair value hedges Cash flow hedges Hedges of a net investment in a … Read more

Last update 07/02/2020 Nature and extent of risks arising from financial instruments (paragraphs 31–42) B6 The disclosures required by paragraphs 31–42 shall be either given in the financial statements or incorporated by cross-reference from the financial statements to some other statement, such as a management commentary or risk report, that is available to users of … Read more