IFRS Jargon

Last update 06/01/2020 Restrictions on transferred assets – Stipulations that limit or direct the purposes for which a transferred asset may be used, but do not specify that future economic benefits or service potential is required to be returned to the transferor if not deployed as specified. Stipulations on transferred assets are terms in laws … Read more

Last update 23/08/2019 IAS 16 Definition: The residual value of an asset is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. Following … Read more

Last update 22/08/2019 An entity that chooses, or is required, to prepare general purpose financial statements. The Conceptual Framework provides the following guidance [Conceptual Framework 3.10 – 3.14]: A reporting entity can be a single entity or a portion of an entity or can comprise more than one entity. A reporting entity is not necessarily a … Read more

Last update 06/01/2020 Reliable information – While everybody agrees that financial reporting measurements should provide reliable information, there is no consensus as to what exactly reliability means. For example, views differ as to whether verifiability is an essential component of reliability. Reliable information In measurement generally (as opposed to financial reporting specifically), repeat-ability is usually … Read more

Last update 22/08/2019 Relevant financial information is capable of making a difference in decisions made by users if it has predictive value, confirmatory value or both. Predictive value – the financial information is useful because it can be used as an input to processes employed by users to predict future outcomes, in making users’ own … Read more

Last update 06/01/2020 IAS 24 Definition: A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged. See the definitions for related parties here. A related-party transaction is a deal or arrangement between two parties who are joined by … Read more

Last update 09/12/2019 Regulated interest rates – IFRS 9 recognises that in some jurisdictions, the government or a regulatory authority sets interest rates – e.g. as part of a broad macro-economic policy, or to encourage entities to invest in a particular sector of the economy. In some of these cases, the objective of the time … Read more

Last update 22/08/2019 A purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned. A regular way purchase or sale of financial assets as such means trading in long positions on an exchange. IFRS 9 B3.1.5 and … Read more

Last update 27/12/2019 Refund liabilities – An entity may receive consideration that it will need to refund to the customer in the future because the consideration is not an amount to which the entity ultimately will be entitled under the contract. These amounts received (or receivable) needs to be recorded as refund liabilities. A refund … Read more

Last update 22/08/2019 IAS 36 Definition: Recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other … Read more