IFRS Jargon

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 14/02/2020 Allocate the transaction price to the performance obligations – This part relates to a complete explanation of IFRS 15 Revenue from contracts with customers in respect of Engineering & Construction contracts, see Revenue from Engineering & Construction contracts. Once the performance obligations are identified and the transaction price … Read more

Last update 14/01/2020 Topics hide Operating activities Financing activities Investing activities Why IAS 7? Performance indicator – Operating Cash Flow/Net Sales Free Cash Flow  Example Statement of cash flows Operating activities Operating activities Definition: The activities of the entity that are not investing or financing activities. Cash receipts and cash payments resulting from operations, items … Read more

Last update 14/01/2020 Topics hide Investing activities Financing activities Operating activities Why IAS 7? Performance indicator – Operating Cash Flow/Net Sales Free Cash Flow  Example Statement of cash flows Investing activities Definition: The acquisition and disposal of long-term assets and other investments not included in cash equivalents. Cash receipts and cash payments relating to non-current … Read more

Last update 06/12/2019 12-month risk approximation as an estimate for change in lifetime risks from IFRS 9 Financial instruments. If the likey pattern of default is not concentrated a a specific point during the expected life of a financial instruments, the change in risk of a default occurring over the next 12-months may often be … Read more

Last update 04/01/2020 eXtensible Business Reporting Language (XBRL) is a form of electronic communication whose main feature includes interactive electronic tagging of both financial and non-financial data. The IFRS Taxonomy is a translation of IFRS into XBRL. It classifies information presented and disclosed in IFRS financial statements and reflects presentation and disclosure requirements in IFRS … Read more

Last update 06/12/2019 So, what is replicating portfolios? Topic – IFRS 17 Insurance contracts. A replicating portfolio is a pool of assets designed to reproduce (replicate) the cash flows or market values of a pool of liabilities across a large number of stochastic scenarios used among other in the insurance industry. Once set up, a … Read more

Last update 04/01/2020 Weighted Average Cost of Capital WACC Formula Here is the basic formula to calculate for weighted average cost of capital (WACC): WACC = (( E / V ) * Re) + [( ( D / V ) * Rd) * (1-T)] E = Market value of the business entity’s equity D = … Read more

Last update 04/08/2019 An enhancing qualitative characteristic that enables different knowledgeable and independent observers to reach consensus, although not necessarily complete agreement, that a particular depiction is a faithful representation. The Conceptual Framework provides the following guidance [Conceptual Framework 2.30 – 2.32]: Verifiability helps assure users that information faithfully represents the economic phenomena it purports to represent. Verifiability means … Read more

Last update 17/12/2019 [IFRS 17 Insurance Contracts] The Variable Fee Approach (‘VFA’) is a modification of the General Model. The General Model is applied to insurance contracts without participation features or to insurance contracts with participation features that fail the Variable fee scope test. Topics hide Variable fee scope test Overview Variable Fee Approach Differences … Read more

Last update 06/12/2019 Value-at-risk – Over the past 20 years the value-at-risk (VAR) analysis has become established as the industry and regulatory standard in measuring market risk. The demands placed on VAR and other similar techniques have grown tremendously, driven by new products such as correlation trading, multi-asset options, power-reverse dual currency swaps, swaps whose … Read more