IFRS Topics

Last update 22/12/2019 In summary – share-based Payment The basic accounting for share-based payments for remuneration is quite simple – expense an amount over a vesting period. The main difficulties are associated with (a) determining a reliable fair value for the instrument, and (b) determining a reasonable estimate of the number of instruments that will … Read more

Last update 27/10/2019 Setting the scene the Expected Credit Losses model, start here to get a good understanding of ECL loss allowances or continue, you decide…… The Expected Credit Losses model (ECL) should be applied to: investments in debt instruments measured at amortized cost; investments in debt instruments measured at fair value through other comprehensive … Read more

Last update 27/11/2019 Setting the hedge ratio is about this ratio between the amount of hedged item and the amount of hedging instrument. For many hedging relationships, the hedge ratio would be 1:1 (or 1 or 100%, notation varies between people) as the underlying of the hedging instrument perfectly matches the designated hedged risk. Setting … Read more

Last update 22/12/2019 Service or insurance contract – Some contracts meet the definition of an insurance contract but their primary purpose is to provide services for a fixed fee. An entity issuing such contracts may choose to apply IFRS 15 to them if, and only if all of the following conditions are met: Identification of … Read more

Last update 22/12/2019 Illustrative examples Service Concession Arrangements These examples accompany, but are not part of, IFRIC 12. Example 1: The grantor gives the operator a financial asset Arrangement terms Service Concession Arrangements IE1 The terms of the arrangement require an operator to construct a road—completing construction within two years—and maintain and operate the road … Read more

Last update 01/10/2019 IFRS 15 Revenue from Contracts with Customers (contents page is here) introduced a single and comprehensive framework which sets out how much revenue is to be recognised, and when. The core principle is that a vendor should recognise revenue to depict the transfer of promised goods or services to customers in an … Read more

Last update 19/12/2019 Separation of Insurance Contracts – Before the entity accounts for an insurance contract based on the guidance in IFRS 17, it should analyse whether the contract contains components that should be separated. Insurance contracts create a bundle of rights and obligations that work together to generate a package of cash flows. Some … Read more

Last update 19/12/2019 Separation from an insurance contract – An entity applies the principles in IFRS 15 on how to separate a contract with a customer that is partially within the scope of IFRS 15 and partially within the scope of other standards. The allocation of cash flows between the host insurance contract and the … Read more

Last update 06/01/2020 Separate financial statements – IAS 27 shall be applied in accounting for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements. The laws of some countries require companies to present separate financial statements prepared in accordance with local regulations, and those local regulations require the investments in … Read more

Last update 05/12/2019 Sensitivity analysis to market risk – Companies are required to report both qualitatively and quantitatively on their risk management strategies and the internal metrics they use for the calculation and management of risk arising from financial instruments. IFRS 7 breaks down the risk arising from financial instruments into three broad categories: market … Read more