IFRS Topics

Last update 16/09/2019 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 23/12/2019 Rebalancing of hedged item or hedging instrument – IFRS 9 introduces the concept of ‘rebalancing’. Rebalancing refers to adjustments to the designated quantities of either the hedged item or the hedging instrument of an existing hedging relationship for the purpose of maintaining a hedge ratio that complies with the hedge effectiveness requirements. … Read more

Last update 27/11/2019 Rebalancing Definition – The newly introduced concept of rebalancing only comprises changes to the hedge ratio to reflect expected changes in the relationship between the hedged item and the hedging instrument. Rebalancing refers to adjustments to the designated quantities of either the hedged item or the hedging instrument of an existing hedging … 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 29/11/2019 Realised cash flows differ from expectations – The business model assessment is forward-looking, so cash flows may sometimes be realised in a way that differs in a way that differs from the entity’s expectations at the time of the original assessment. For example, the entity might sell more assets from the portfolio … Read more

Last update 30/09/2019 An asset’s realisable value is the amount for which it could be sold, and a liability’s realisable value is the amount for which it could be settled. Realisable value measurements are often made on a net basis, and here realisable value will be considered in the sense of net realisable value; that … Read more

Last update 26/11/2019 Real estate revenue takes you through the recognition of revenue in a special industry real estate and construction. This narrative considers key implications IFRS 15 Revenue from Contracts with Customers for real estate entities. It provides an overview of the revenue recognition model in IFRS 15 with a focus on entities that: … Read more

Last update 04/12/2019 Quick checks Business Combinations – A business combination is the joining together of separate entities or business operations into one reporting group by obtaining control by one party (the acquirer and parent company or parent company’s subsidiary) over the other party (the acquiree). OR Quick checks Business Combinations Quick checks Business Combinations … Read more

Last update 06/12/2019 Questions to Ask about the Statement of Performance – The Statement of Performance (consisting of Statement of Income and Statement of Other Comprehensive Income) has to be questioned, first Revenue then Expenditures. Questions to Ask about the Statement of Performance The questions that apply to revenues raised to support operations tend to … Read more

Last update 04/12/2019 Questions to Ask about the Statement of Financial Position – Directors or supervisory (non-executive) directors have to ask questions to the preparers of the financial statements to go prepared into the general meeting of shareholders. The question may be along these lines: What are the components of cash and cash equivalents? Are … Read more