IFRS Topics

Last update 01/10/2019 IFRS 16 makes significant changes to sale and leaseback accounting. A sale and leaseback transaction is one where an entity (the seller-lessee) transfers an asset to another entity (the buyer-lessor) for consideration and leases that asset back from the buyer-lessor. A sale and leaseback transaction is a popular way for entities to … Read more

Last update 11/11/2019 IFRS 15 Royalty income intellectual property provides application guidance on the recognition of revenue for sales-based or usage-based royalties on licences of intellectual property, which differs from the requirements that apply to other revenue from licences. IFRS 15 B63 requires that royalties received in exchange for licences of intellectual property are recognised … Read more

Last update 17/12/2019 Risk adjustment for non-financial risks – The third element of measuring fulfilment cash flows in the general model (see ‘General model of measurement of insurance contracts‘) is a risk adjustment for non-financial risk. Here is how the risk adjustment for non-financial risks fits into the general model of measurement of insurance contracts. … Read more

Last update 30/11/2019 Introduction – set the stage Rights with potential to produce economic benefits – This is all about: An economic resource is a right that has the potential to produce economic benefits. Many assets, for example, receivables and property, are associated with legal rights, including the right of ownership. In determining the existence … Read more

Last update 17/12/2019 Right to obtain economic benefits from use – To control the use of an identified asset, a customer is required to have the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use (for example, by having exclusive use of the asset throughout … Read more

Last update 04/12/2019 Right to control the use of the identified asset – A contract conveys the right to control the use of an identified asset for a period of time if, throughout the period of use, the customer has the right to obtain substantially all of the economic benefits from the use of the … Read more

Last update 07/11/2019 Reversal of impairment losses of a disposal group’s assets occurs when an asset held for sale is impaired but then revalues, as follows: Fair value less costs to sell of assets held for sale may exceed the assets carrying amounts either at the initial classification date or on subsequent remeasurement under IFRS … Read more

Last update 30/09/2019 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 30/09/2019 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 15/09/2019 Revenue recognition over time is the defined term. As a result, revenue recognition at a point of time is the valid recognition principle when the definition of revenue recognition over time is not met.  A vendor satisfies a performance obligation and recognises revenue over time when one of the following three criteria … Read more