IFRS Jargon

Last update 17/08/2019 Impairment of assets requires that the recoverable amount of an asset should be estimated whenever there is indication that the asset may be impaired. Impairment of assets requires an impairment loss to be recognised (an asset is impaired) whenever the carrying amount of an asset exceeds its recoverable amount. An impairment loss … Read more

Last update 05/02/2019 Accounting example Impairment of property, plant and equipment, intangible assets, and goodwill The group assesses assets or groups of assets, called cash-generating units (CGUs), for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or CGU may not be recoverable; for example, changes in the group’s … Read more

Last update 16/12/2019 IFRS 3 Definition: Measurement period – the period after the acquisition date during which the acquirer may adjust the provisional amounts recognized for a business combination, providing the acquirer with a reasonable time to obtain the information necessary to apply the requirements of IFRS 3. The measurement period shall not exceed one … Read more

Last update 24/11/2019 Identified asset, a term from IFRS 16 Leases. Let’s see what it is all about…. An asset is identifiable if it either: Is separable, i.e., is capable of being separated or divided from the entity and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset or liability, … Read more

Last update 28/12/2019 Hold to collect and sell – this is part of the classification of financial assets. Classification determines how financial assets and financial liabilities are accounted for in financial statements and, in particular, how they are measured on an ongoing basis. IFRS 9 introduces a logical approach for the classification of financial assets, … Read more

Last update 27/12/2019 Hold to collect is a business model defined under IFRS 9. This is part of the classification of financial assets. The objective of the ‘hold to collect’ business model is to hold financial assets to collect their contractual cash flows, rather than with a view to selling the assets to generate cash … Read more

Last update 09/09/2019 IFRS Definition –  Highly probable: Significantly more likely than probable. IFRS Definition –  Probable: More likely than not. Other probability qualifications used in IFRS Standards are: Unlikely, Highly unlikely, Highly likely, Likely, More likely than not, Most likely, More likely and Virtually certain. Looking at the statistical data below, highly probable would … Read more

Last update 05/01/2020 Highest and best use is the use of a non-financial asset by market participants that would maximise the value of the asset or the group of assets and liabilities (eg a business) within which the asset would be used. Here is the way real estate manager use this definition, which should be … Read more

Last update 16/05/2019 This is an IAS 39 definition, under IFRS 9 replaced by Investments to ‘hold to collect’. Non-derivative financial assets with fixed or determinable payments and fixed maturity that an entity has the positive intention and ability to hold to maturity other than: Those that the entity upon initial recognition designates as at … Read more

Last update 17/08/2019 Held-to-maturity financial assets have passed the SPPI test (solely payment of principal and interest) and the business model test (Held to collect). Held-to-maturity financial assets are measured at amortized cost, using the effective interest method, less any impairment. IFRS Definition- Amortised cost: The amount at which the financial asset or financial liability … Read more