IFRS Topics

Last update 16/12/2019 Measuring goodwill or a gain from a bargain purchase – Applying IFRS 3’s formula may result in a positive amount (goodwill) or a negative amount (gain from a bargain purchase). These amounts are accounted for differently. A gain from a bargain purchase is expected to arise relatively infrequently and can normally be … Read more

Last update 18/11/2019 Measurement under IFRS is still diverse and sometimes inconsistent. Here is a summary of current measurement practices in IFRS and areas for improvement. The standards for which the IASB is responsible – International Financial Reporting Standards (IFRS) – are one collection of financial reporting practices. They are increasingly important because of the … Read more

Last update 17/12/2019 Measurement of remaining coverage – An entity measures the liability for remaining coverage on initial recognition of a group of insurance contracts eligible for the premium allocation approach (PAA) that are not onerous, as follows (IFRS 17 55]: The premium, if any, received at initial recognition Minus Measurement of remaining coverage Any … Read more

Last update 19/12/2019 Measurement of insurance contracts The carrying amount of a group of insurance contracts at the end of each reporting period isthe sum of the liability for remaining coverage and the liability for incurred claims. At the end of each reporting period the liability for remaining coverage and the liability for incurred claims … Read more

Last update 18/11/2019 Measurement of Expected Credit Losses does not have to be difficult, certainly in a normal business operation. For financial institutions (insurance and banks) such measurement will be more complicated, but in these industries big data technologies provide a very useful tool. The basis for an Estimate of Expected Credit Losses is an … Read more

Last update 13/09/2019 The total carrying amount of equity (total equity) is not measured directly. It equals the total of the carrying amounts of all recognised assets less the total of the carrying amounts of all recognised liabilities. Because general purpose financial statements are not designed to show an entity’s value, the total carrying amount … Read more

Last update 17/12/2019 Measurement of contracts with participation features – Entities that issue participating contracts (referred to in the standard as contracts with participation features) provide policyholders with a financial return on the premiums they pay by sharing the performance of underlying items with policyholders. Participating contracts can include cash flows with different characteristics, for … Read more

Last update 14/12/2019 This is a case for the measurement of building held for sale under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. Topics hide The case The analysis Other topics regarding held for sale: Available for immediate sale Sale highly probable Extension of the period required to complete a sale Related … Read more

Last update 25/11/2019 Measurement information avoid perverse effects is a dilemma, focus on fair value but how accurate and ‘manageable’. Pressure to achieve certain results. In assessing the probable and actual effects of measurement information: Measurement information avoid perverse effects it is its impact on behaviour that counts; and Measurement information avoid perverse effects how … Read more

Last update 13/09/2019 The measurement bases that will be considered here are: Historical cost measurement; Current value measurements, consisting off: Fair value measurement; Current costs measurement (also known as deprival value or value to the business); Realisable value measurement; and Value in use measurement. All these bases are forms of accrual accounting – that is, … Read more