IFRS Jargon

Last update 05/01/2020 Exit price Entry price IFRS 13 Definition – Exit price: The price that would be received to sell an asset or paid to transfer a liability. Exit price Entry price IFRS 13 Definition – Entry price: The price paid to acquire an asset or received to assume a liability in an exchange … Read more

Last update 10/08/2019 Uncertainty about whether an asset or a liability exists. Further explanations: There are sections in IFRS that discuss cases in which it is uncertain whether an asset or liability exists. In some cases, that uncertainty, possibly combined with a low probability of inflows or outflows of economic benefits and an exceptionally wide … Read more

Last update 10/08/2019 A contract that is equally unperformed: neither party has fulfilled any of its obligations, or both parties have fulfilled their obligations partially and to an equal extent. The Conceptual Framework provides the following guidance [Conceptual Framework 4.57 – 4.58]: An executory contract establishes a combined right and obligation to exchange economic resources. … Read more

Last update 10/08/2019 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 17/10/2019 Equity method is used to account for investments in associates and joint-ventures. Simply put, the equity method is a simplified form of consolidation (IAS 28 27), with one major difference: items are not added line-by-line, but a single asset (investment in associate or joint-venture) is recognised in the statement of financial position … Read more

Last update 10/08/2019 An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. FVOCI election for equity instruments At initial recognition of an equity investment, that is not held for trading or a contingent consideration (recognised by the acquirer in a business combination), … Read more

Last update 10/08/2019 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 attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests. The proportion … Read more

Last update 10/08/2019 Equity: The residual interest in the assets of the entity after deducting all its liabilities. Equity claim: A claim on the residual interest in the assets of the entity after deducting all its liabilities. Equity interests: For the purposes of IFRS 3, is used broadly to mean ownership interests of investor-owned entities … Read more

Last update 10/08/2019 Entity-specific value or value in use is the present value of the cash flows an entity expects to arise from the continuing use of an asset and from its disposal at the end of its useful life or expects to incur when settling a liability. This is not a concept in use … Read more

Last update 10/08/2019 A qualitative characteristic that makes financial information more useful if the information both is relevant and provides a faithful representation. Comparability, verifiability, timeliness and understand-ability are qualitative characteristics that enhance the usefulness of information that both is relevant and provides a faithful representation of what it purports to represent. The enhancing qualitative … Read more