IFRS Jargon

Last update 25/11/2019 Under IFRS 11, ‘Joint Arrangements’, investments in joint arrangements are classified as either joint operations or joint ventures, depending on the contractual rights and obligations that each investor has, rather than the legal structure of the joint arrangement. A reporting entity has assessed the nature of its joint arrangements and determined whether that it has … Read more

Last update 27/12/2019 Investments in Associates and Joint Ventures are two types of investments that are in use by many larger groups of companies. Topics hide Associate Joint venture Strategic investments in financial assets The equity method Investments in associates Initial measurement Subsequent measurement Investments in Associates and Joint Ventures Associate An associate is an … Read more

Last update 05/08/2019 A method of accounting for an investment, whereby the investment is recognised at cost. The investor recognises revenue from the investment only to the extent that the investor is entitled to receive distributions from accumulated surpluses of the investee arising after the date of acquisition. Entitlements due or received in excess of … Read more

Last update 21/08/2019 Investment property is property (land or a building—or part of a building—or both) held (by the owner or by the lessee as a right-of-use asset) to earn rentals or for capital appreciation or both, rather than for: use in the production or supply of goods or services or for administrative purposes; or sale in the … Read more

Last update 11/12/2019 Investment funds are companies or organized joint ownerships which are collecting funds from a certain number of investors and which are engaged in reinvesting those funds according to the principle of risk spreading and to make its stockholders or members benefit from the results of its asset management. The US terminology is … Read more

Last update 04/01/2020 Investment contract with discretionary participation features – A financial instrument that provides a particular investor with the contractual right to receive, as a supplement to an amount not subject to the discretion of the issuer, additional amounts: that are expected to be a significant portion of the total contractual benefits; the timing … Read more

Last update 04/01/2020 Investment component – The amounts that an insurance contract requires the entity to repay to a policyholder even if an insured event does not occur. An example of an investment component is an insurance contract where premiums are paid into an account balance and that balance (or a portion thereof) is guaranteed … Read more

Last update 09/12/2019 Intrinsic value – The difference between the fair value of the shares to which the counterparty has the (conditional or unconditional) right to subscribe or which it has the right to receive, and the price (if any) the counterparty is (or will be) required to pay for those shares. For example, a … Read more

Last update 10/12/2019 Interest in other entities – For the purpose of IFRS 12 Disclosure of Interest in Other Entities, an interest in another entity refers to contractual and non-contractual involvement that exposes an entity to variability of returns from the performance of the other entity. An interest in another entity can be evidenced by, … Read more

Last update 18/08/2019 Example accounting policy Intangible assets, other than goodwill, include expenditure on the exploration for and evaluation of oil and natural gas resources, computer software, patents, licences and trademarks and are stated at the amount initially recognized, less accumulated amortization and accumulated impairment losses. Intangible assets acquired separately from a business are carried … Read more