IFRS Jargon

Last update 19/08/2019 Notes to the financial statements that contain information in addition to that presented in the statement of financial position, statement of financial performance, statement of changes in net assets/equity and cash flow statement. Notes provide narrative descriptions or disaggregations of items disclosed in those statements and information about items that do not … Read more

Last update 09/12/2019 Non-recourse assets – In some cases, a financial asset may have contractual cash flows that are described as principal and interest, but that do not represent the payment of principal and interest. The essential difference between a recourse and non-recourse asset has to do with which assets a lender can claim against … Read more

Last update 19/08/2019 IFRS Definition: An asset that does not meet the definition of a current asset. AKA – Fixed assets Or……. Assets An asset is something which has an economic value and held by an organization for benefit in present and future. Assets are broadly classified into two categories based on the time period … Read more

Last update 19/08/2019 Definition IFRS 10 Non-controlling interest or NCI represents equity in a subsidiary not attributable, directly or indirectly, to a parent. AKA: Minority interest More information/explanation: A parent presents non-controlling interests in its consolidated statement of financial position within equity, separately from the equity of the owners of the parent. A reporting entity … Read more

Last update 19/08/2019 Those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified: Those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and Those that are … Read more

Last update 06/12/2019 No derecognition – Assets Together with full derecognition, this is the clearest type of transfer (all transfer possibilities, see below derecognition diagram). But keep in mind, 95% of transfers result in full recognition and are simple, the entity that has recorded a financial asset receives cash and removes the asset from its … Read more

Last update 19/08/2019 As a general rule (not only in IFRS) assets should not be carried at amounts greater than those expected to be realised from their sale or use. In the case of inventories this amount could fall below cost when items are damaged or become obsolete, or where the costs to completion have … Read more

Last update 11/12/2019 The net investment hedge is one of three hedges defined in IFRS 9, the others are the fair value hedge and the cash flow hedge. Hedge accounting can bring a number of advantages over traditional accounting methods. The core benefit is that by addressing the timings mismatch associated with standard derivative accounting, … Read more

Last update 19/08/2019 Other word for equity or  the residual interest in the assets of the entity after deducting all its liabilities. Companies with negative net assets (or individuals with negative net worth) are usually in a lot of trouble. Frequently, one solution is to sell off assets in order to generate cash and pay down debt. Companies may also try … Read more

Last update 19/08/2019 An entity, other than an investor-owned entity, that provides dividends, lower costs or other economic benefits directly to its owners, members or participants. For example, a mutual insurance company, a credit union and a co-operative entity are all mutual entities. A mutual company is a private firm that is owned by its customers … Read more