IFRS Topics

Last update 02/12/2019 Overview of the amendments IFRS 3 – In May 2019 amendments to IFRS 3 Business Combinations were published by IASB. See the introduction in Redefinition of a business. IFRS 3 continues to adopt a market participant’s perspective to determine whether an acquired set of activities and assets is a business. The amendments: … Read more

Last update 16/11/2019 Overview hedge accounting provides what is says, an overview to start understanding hedge accounting under IFRS 9. Every entity faces risks from its business environment that can impact expected cash flows or the fair value of its assets and liabilities and, accordingly, have an effect on its earnings. An entity may face … Read more

Last update 12/11/2019 Output method Measuring progress to completion is part of IFRS 15 Revenue from Contracts with Customers (contents page is here), that  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 … Read more

Last update 01/12/2019 Order or production backlog – In a Business Combinations, this is a intangible asset and is therefore recognised separately from goodwill, provided that its fair values can be measured reliably. This marketing-related intangible asset meets the definition of an intangible asset because it arises from contractual or other legal rights. An order … Read more

Last update 14/09/2019 Contracts frequently include options for customers to purchase additional goods or services in the future. Customer options that provide a material right to the customer (such as a free or discounted good or service) give rise to a separate performance obligation. In this case, the performance obligation is the option itself, rather … Read more

Last update 12/12/2019 Topics hide Option to put a non-financial asset Practice of settling net forward contract to purchase a commodity Option to put a non-financial asset Related posts: Option to put a non-financial asset Entity XYZ owns an office building. XYZ enters into a put option with an investor that permits XYZ to put … Read more

Last update 16/09/2019 IFRS 8 defines an operating segment as a ‘component of an entity that engages in business activities from which it may earn revenues and incur expenses’. This recognises that not all business activities earn revenues. Where transfer prices are charged between an entity’s stages of production (for example, with oil and gas … Read more

Last update 16/09/2019 IFRS 8 defines an operating segment as a ‘component of an entity that engages in business activities from which it may earn revenues and incur expenses’. This recognises that not all business activities earn revenues. Topics hide Cost centers as a separate segment Related posts: Cost centers as a separate segment Manufacturing … Read more

Last update 16/09/2019 IFRS 8 10 addresses the issue of matrix structures. It uses the example of an entity where some managers are responsible for product and service lines worldwide, whereas other managers are responsible for specific geographical areas. The CODM reviews the operating results of both sets of components, and discrete financial information is … Read more

Last update 17/12/2019 Topics hide Initial recognition Onerous insurance contracts Example initial measurement Subsequent measurement Onerous insurance contracts Onerous insurance contracts Related posts: Initial recognition Onerous insurance contracts An insurance contract is onerous at the date of initial recognition if the fulfilment cash flows allocated to the contract, including any previously recognised acquisition cash flows … Read more