IFRS Jargon

Last update 31/07/2019 IFRS 13 Definition: A market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. Why is market data important? Many current and emerging regulatory or reporting regimes use the ideas of fair value or market-consistent value of assets … Read more

Last update 08/12/2019 Acquisition-related costs are costs the acquirer incurs to effect a business combination. Those costs include finder’s fees; advisory, legal, accounting, valuation and other professional or consulting fees; general administrative costs, including the costs of maintaining an internal acquisitions department; and costs of registering and issuing debt and equity securities. The acquirer shall … Read more

Last update 31/07/2019 IFRS 3 Definition: The date on which the acquirer obtains control of the acquiree. The second step in applying the acquisition method, subsequent to identifying the acquirer, is to determine the acquisition date. Simply put, the acquisition date is the date on which the acquirer obtains control of the acquiree. In general, … Read more

Last update 06/01/2020 Accurate information – The principle that financial reporting measurements should be accurate seems to be indisputable, though because such measurements are often subjective or matters of convention, accountants are sometimes reluctant to use words like accuracy in case they give a misleading impression of certainty or objective reality. Some commentators regard accuracy … Read more

Last update 06/01/2020 Accrued benefit – the amount of a participant’s benefit obligation (i.e. his/her right to a retirement pension at a certain moment in time) (whether or not vested) in a pension plan as of a specific date that is determined in accordance with the terms of the retirement plan and based on compensation … Read more

Last update 05/01/2020 There are two basic type of accounting methodologies – one is cash accounting and the other is accrual accounting. Accrual accounting depicts the effects of transactions and other events and circumstances on a reporting entity’s economic resources and claims in the periods in which those effects occur, even if the resulting cash receipts … Read more

Last update 30/07/2019 IAS 8 Definition: The specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements. Accounting policies are procedures an entity uses to prepare its (consolidated) financial statements. Unlike accounting principles, which are rules, accounting policies are the standards for following those rules and define the … Read more

Last update 10/12/2019 “The ability to use power to affect the returns” means that an investor controls an investee not only if (s)he has power and exposure to its returns but also the ability to use its power to affect these returns. If not, an investor which has decision-making rights with regard to an investee … Read more