IFRS Topics

Last update 16/12/2019 Onerous contracts – Example on recognising and measuring provisions Topics hide The Case: Consideration Background Onerous contracts Related posts: The Case: An onerous contract is one in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under … Read more

Last update 15/12/2019 IFRS 13 On Demand technology With and Without – Estimates the fair value of an asset by comparing the value of the business inclusive of the subject asset, to the hypothetical value of the same business excluding the subject asset. The with and without method is used to separate one intangible asset … Read more

Last update 16/09/2019 IAS 32 prescribes rules for the offsetting of financial assets and financial liabilities. It specifies that a financial asset and a financial liability should be offset and the net amount reported when and only when, an enterprise: Offsetting of financial assets and financial liabilities has a legally enforceable right to set off … Read more

Last update 04/12/2019 Obligations may be legally enforceable as a consequence of a binding contract or statutory requirement. This is normally the case, for example, with amounts payable for goods and services received. However, obligations do not have to be legally binding. If, for example, an entity decides as a matter of policy to rectify … Read more

Last update 27/11/2019 Objective of hedge accounting provides the introduction a a few narratives to obtain an understanding of hedge accounting under IFRS 9. All hedge accounting narratives are listed here. Every entity is exposed to business risks from its daily operations. Many of those risks have an impact on the cash flows or the … Read more

Last update 12/12/2019 Nuclear power plant and decommissioning liability These examples accompany, but are not part of, IFRIC 1. Common facts Cost model Nuclear power plant and decommissioning liability An entity has a nuclear power plant and a related decommissioning liability. The nuclear power plant started operating on 1 January 2000. The plant has a … Read more

Last update 26/08/2019     IFRS 2 44–45(a) IFRS 2 50 12. Share-based payment arrangements Notes to financial statements – Employee benefits See accounting policy in Note 45(E)(ii). A. Description of share-based payment arrangements Notes to financial statements – Employee benefits At 31 December 2018, the Group had the following share-based payment arrangements. i. Share … Read more

Last update 20/08/2019 IAS 1 10(e) IAS 1 113–114 Notes to the consolidated financial statements1 The basis of preparation comprises the notes to the financial statement relating to: Reporting entity Basis of accounting Functional and presentation currency Use of judgements and estimates IAS 1 51(a)–(b) IAS 1 138(a)–(b) 1. Reporting entity [Name of the Company] … Read more

Last update 26/08/2019 IFRS 8 20–22 6. Operating segments   Blog note: Operating segment disclosures are consistent with the information reviewed by the chief operating decision maker (CODM) and will vary from one entity to another and may not be in accordance with IFRS. To help users of the financial statements understand the segment information … Read more

Last update 20/08/2019   IFRS 8 IN13 IFRS 8 20–22  IFRS 8 27–28 6. Operating segments1 6 – A. Basis for segmentation The Group has the following six strategic divisions, which are its reportable segments. These divisions offer different products and services, and are managed separately because they require different technology and marketing strategies. The … Read more