IFRS Jargon

Last update 09/12/2019 The continuing involvement approach applies if the entity has neither transferred nor retained substantially all the risks and rewards of ownership and control has not passed to the transferee. Under the continuing involvement approach, the entity continues to recognise part of the asset. That part represents the extent of its continuing exposure … Read more

Last update 04/08/2019 A contingent liability is: a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or a present obligation that arises from past events but is not recognised … Read more

Last update 04/08/2019 Usually, an obligation of the acquirer to transfer additional assets or equity interests to the former owners of an acquiree as part of the exchange for control of the acquiree if specified future events occur or conditions are met. However, contingent consideration also may give the acquirer the right to the return … Read more

Last update 04/08/2019 A contingent asset is a possible asset that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. In short: A contingent asset is an asset that depends on some future … Read more

Last update 09/12/2019 Contingencies – There are three (general) definitions of a contingency: IAS 37 – Provisions, contingent liabilities and contingent assets An existing situation whose result is unknown or unpredictable, A possible event that must be prepared for, A condition that must be satisfied before an action is triggered, an agreement is effected, a … Read more

Last update 27/12/2019 Under IFRS 15 revenue recognition is handled under a 5-step model, as follows: Identify contract with the customer; Identify the performance obligations in the contract; Determine the transaction price; Allocate the transaction price to the performance obligations in the contract; Recognize revenue when (or as) an entity satisfy a performance obligation. A … Read more

Last update 24/08/2019 IFRS 10 Definition The financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity. Parent – An entity that controls one or more entities. The other types of financial statements are … Read more

Last update 06/01/2020 Concise information – Other things being equal, where information is concerned, the shorter the better……… or better, it is a balancing act, full of dilemma’s simple but not too……….. brief but comprehensive? compact but understandably……. In a nutshell it is about to make a long story short……. Succinct and to the point, … Read more

Last update 04/08/2019 An enhancing qualitative characteristic that enables users to identify and understand similarities in, and differences among, items. The Conceptual Framework provides the following guidance [Conceptual Framework 2.24 – 2.29]: Users’ decisions involve choosing between alternatives, for example, selling or holding an investment, or investing in one reporting entity or another. Consequently, information … Read more

Last update 10/12/2019 Commitments are items that are not reported as liabilities as of the balance sheet date. Some of these items are reported in the notes to the financial statements. Examples include non-cancelable (as at balance sheet date) binding contracts to rent space in the future or to purchase items at specified prices. Off-course … Read more