IFRS Topics

Last update 26/11/2019 Related parties transfer pricing is one of the most important issues in international tax and as a result also needs disclosure under IAS 24 Related party disclosures. Transfer pricing is the general term for the pricing of cross‐border, intra‐firm transactions between related parties. These transactions can include transfers of intangible property, tangible … Read more

Last update 30/09/2019 This example case illustrates the partial exemption for government-related entities [IAS 24 25]: Government G directly or indirectly controls Entities 1 and 2 and Entities A, B, C and D. Person X is a member of the key management personnel of Entity 1.   For Entity A’s financial statements, the exemption in … Read more

Last update 17/12/2019 Reinsurance contracts held – A reinsurance contract is an insurance contract issued by one entity (the reinsurer) to compensate another entity for claims arising from one or more insurance contracts issued by the other entity (underlying contracts). IFRS 17 requires a reinsurance contract held to be accounted for separately from the underlying … Read more

Last update 02/12/2019 A regulatory deferral account is an amount recognised by a price-regulated entity, for example an electricity supplier. Rate regulations allow the supplier to recover specified costs and other amounts through the prices charged to retail customers, subject to the approval of a rate regulator. To protect the interests of customers, rate regulation … Read more

Last update 17/12/2019 Refunds policy – Example on recognising and measuring provisions Topics hide The Case: Considerations: Key definitions [IAS 37 10] Recognition of a provision Refunds policy Related posts: The Case: A retail store has a policy of refunding purchases by dissatisfied customers, even though it is under no legal obligation to do so. … Read more

Last update 20/11/2019 Refinancing of bank debt is a case of different intercompany financing arrangements at arm’s length investment terms and at (more of) intercompany investment terms or at (third party) bank finance terms. As a result it includes quite a lot of special explanations of issues faced in such less standard financing terms. Assume … Read more

Last update 25/11/2019 Recognition of revenue as principal or agent, that is a big question under IFRS 15. Recognise a large amount of revenue as a principal or only a fraction of that turnover as an agent. So the stakes are high!! Royalty payments Entity A has agreed to pay a royalty to Entity B … Read more

Last update 12/12/2019 Recognition and measurement taxation Example 1 — The expected value method is used to reflect the effect of uncertainty for tax treatments considered together These examples accompany, but are not part of, IFRIC 23. These examples portray hypothetical situations illustrating how an entity might apply some of the requirements in IFRIC 23 … Read more

Last update 04/12/2019 Recognising operating leases and intangible assets – As part of using the acquisition method for each Business Combination the acquirer has to recognise operating leases and intangible assets. Topics hide Operating leases Recognising operating leases and intangible assets Intangible assets Recognising operating leases and intangible assets Recognising operating leases and intangible assets … Read more

Last update 21/12/2019 Recognise revenue when or as the entity satisfies each performance obligation – This part relates to a complete explanation of IFRS 15 Revenue from contracts with customers in respect of Engineering & Construction contracts, see Revenue from Engineering & Construction contracts. Under IFRS 15, an entity recognises revenue when (or as) it … Read more