IFRS Topics

Last update 02/12/2019 Retirement Benefit Plans – The objective of IAS 26 is to specify measurement and disclosure principles for the reports of retirement benefit plans. All plans should include in their reports a statement of changes in net assets available for benefits, a summary of significant accounting policies and a description of the plan … Read more

Last update 17/12/2019 Restructurings – Example on recognising and measuring provisions Topics hide The Case: Key definitions [IAS 37 10] Recognition of a provision Restructurings Related posts: The Case: A restructuring is a program that is planned and controlled by management and materially changes either the scope of a business undertaken by an entity or … Read more

Last update 22/12/2019 Restatement for effects of hyperinflation – This example accompanies, but is not part of, IFRIC 7. IE1 This example illustrates the restatement of deferred tax items when an entity restates for the effects of inflation under IAS 29 Financial Reporting in Hyperinflationary Economies. As the example is intended only to illustrate the … Read more

Last update 23/11/2019 Reseller and distributor arrangements describes the changes distributors and resellers might have to apply to their accounting for revenue, distribution arrangements and movements of products between for example dealers. IFRS 15 changes practice for entities that sell their products through distributors or resellers. IFRS 15 changes practice for entities that sell their … Read more

Last update 01/12/2019 Required Disclosure for error restatements – If an error (either accidental or intentional in nature) is subsequently discovered that affected a prior period, the nature of the error, its effect on previously issued financial statements, and the effect of its adjustment on current period’s net income and EPS should be disclosed in … Read more

Last update 19/12/2019 Repurchase options and residual value guarantees – Original Equipment Manufacturers (OEMs) may have a right or obligation to repurchase vehicles as part of a contract with a customer or may provide residual value guarantees to certain customers. Examples include repurchase options on sales of fleet vehicles or residual value guarantees to fleet … Read more

Last update 29/11/2019 Repurchase agreement – This is an illustration of how derecognition is applied in practice. The objective is to present the mechanics of applying the IFRS 9 requirements for derecognition of financial assets, starting with an analysis of the transaction using the flowchart [IFRS 9 B3.2.1], and culminating with the initial and subsequent … Read more

Last update 30/11/2019 A reporting period is the span of time covered by a set of financial statements, normally a year from 1 January Year to 31 December Year. The reporting period also called accounting period can also be for a interim period either for a month or quarter. Reporting entities consistently use the same … Read more

Last update 12/12/2019 Reporting lines in Other Operating Income – What has to be included in profit or loss and what should be included in other comprehensive income? The answer is defined practical in IFRS (IAS 1 Presentation of Financial Statements, in 7 Definitions): Other comprehensive income (OCI) comprises items of income and expense (including … Read more

Last update 22/12/2019 Relationship of Growth ROIC and Cash Flow – Disaggregating cash flow into revenue growth and ROIC helps illuminate the underlying drivers of a company’s performance. Say a company’s cash flow was $100 last year and will be $150 next year. This doesn’t tell us much about its economic performance, since the $50 … Read more