IFRS Jargon

Last update 31/12/2019 Foreign exchange reserve – Gains/losses arising on translating the net assets of overseas operations into CU. IAS 21 The Effects of Changes in Foreign Exchange Rates outlines how to account for foreign currency transactions and operations in financial statements, and also how to translate financial statements into a presentation currency. An entity is required … Read more

Last update 17/08/2019 Definition relating to hedge accounting A forecast transaction is an uncommitted but anticipated future transaction. A forecasted transaction is essentially a future transaction that is probable and does not meet the definition of a firm commitment. Forecasted transactions can be contractually established or probable because of an entity’s past or expected business practices. … Read more

Last update 19/12/2019 Fixed fee service contract – IFRS 15 A service provider might enter into fixed fee service contracts. Under these contracts, the customer pays a fixed fee to receive certain services over a fixed period of time when needed. Examples are maintenance contracts under which the service provider is obliged to repair specified … Read more

Last update 17/08/2019 The first annual financial statements in which an entity adopts International Financial Reporting Standards (IFRSs), by an explicit and unreserved statement of compliance with IFRSs. Background IFRS 1 sets out detailed rules that entities must follow when adopting IFRS for the first time. The standard also sets out a number of exemptions that may be … Read more

Last update 17/08/2019 IFRS Definition (so different from underwriting and other finance terms) An agreement with an unrelated party, binding on both parties and usually legally enforceable, that: specifies all significant terms, including the price and timing of the transactions, and includes a disincentive for non-performance that is sufficiently large to make performance highly probable. … Read more

Last update 20/11/2019 Definition relating to hedge accounting A firm commitment is a binding agreement for the exchange of a specified quantity of resources at a specified price on a specified future date or dates. An agreement with an unrelated party, binding on both parties and usually legally enforceable, with the following characteristics: The agreement specifies all … Read more

Last update 16/08/2019 Financing activities Definition: Activities that result in changes in the size and composition of the contributed capital and borrowings of the entity. Cash receipts and cash payments relating to equity and debt related instruments: cash receipts of payments from owners on shares issued and additional paid-in capital, cash payments to owners in … Read more

Last update 06/12/2019 It is not really necessary to define financial statements, but because IFRS is the frame within which IFRS statements are prepared and because there are quite a few different definitions within IFRS relating to and specifying types of financial statements here a those definitions and some other sorted remarks and explanations. Financial … Read more

Last update 16/08/2019 A financial liability ar fair value through profit or loss meets one of the following conditions: it meets the definition of held for trading. upon initial recognition it is designated by the entity as at fair value through profit or loss in accordance with IFRS 9 4.2.2 or IFRS 9 4.3.5. it … Read more

Last update 16/08/2019 For IFRS financial reporting purposes financial liabilities exclude trade and other payables and provisions. Financial liability: any liability that is: a contractual obligation: to deliver cash or another financial asset to another entity; or to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; … Read more