IFRS Topics

Last update 16/11/2019 Qualifying criteria designation are that a hedging relationship has to consist of eligible hedging instruments, eligible hedged items, formal designation and documentation. Unchanged from IAS 39, to qualify for hedge accounting, a hedging relationship has to consist of eligible hedging instruments and eligible hedged items. Also, at inception of the hedging relationship, … Read more

Last update 24/12/2019 Purpose and design of the investee – When assessing control of an investee, an investor shall consider the purpose and design of the investee in order to identify the relevant activities, how decisions about the relevant activities are made, who has the current ability to direct those activities and who receives returns … Read more

Last update 24/12/2019 Purchased and originated credit-impaired financial assets are those for which one or more events that have a detrimental impact on the estimated future cash flows have already occurred. If these financial assets had been originated or purchased before becoming credit impaired, they would be in Stage 3 and lifetime expected losses would … Read more

Last update 05/12/2019 Purchase price of PPE – Here is one complete case of the purchase price and other cost that may be capitalised when acquiring a non-current asset in the day-to-day business. Topics hide THE CASE Purchase price of property Purchase price of PPE Related posts: THE CASE Purchase price of property Entity K … Read more

Last update 23/12/2019 Prudent reporting in high performance periods – This is a note on the innovative history of Philips’ financial reporting, see the ‘Introduction to a history of innovation in financial reporting‘. As a starting point a short history of changes in the Philips’ accounting policies is provided: Prudent reporting in high performance periods … Read more

Last update 22/12/2019 Provisions and contingent liabilities – A provision shall be recognised when: Provisions and contingent liabilities an entity has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable … Read more

Last update 11/11/2019 The provision matrix in the simplified approach is used for financial assets of little complexity and in a non-complicate operation environment, where it is common sense to use. Topics hide Forward looking Provision matrix in the simplified approach Determining appropriate groupings Adjusting historical loss rates for forward looking information Notes Stepped approach … Read more

Last update 06/12/2019 Prospective financial information – There has been increasing demand in recent years for more disclosure of prospective financial information (PFI). Although PFI disclosures are invariably regarded as being relevant to investors, there are also good reasons why they are not made on a regular and comprehensive basis by all companies. Doubts often … Read more

Last update 20/11/2019 Topics hide Property development intercompany finances Interest bearing term loan Senior interest-bearing bank term debt THE CASE NEW SUBSIDIARY/PROPERTY DEVELOPMENT A. Classification B. Impairment (i) Staging Assessment (ii) Estimating the risk of a default occurring (iii) ECL Measurement Related posts: Property development intercompany finances Interest bearing term loan Senior interest-bearing bank term … Read more

Last update 12/12/2019 Property accounting using the Cost model – Property, plant and equipment (PPE) is often composed of various parts with varying useful lives or consumption patterns. These parts are (individually) replaced during the useful life of an asset. Therefore: Property accounting using the Cost model Each part of an item of PPE with … Read more