IFRS Topics

Last update 03/12/2019 Investments material associates disclosures – The subject of investments material associates disclosures may be aggregated for interests in similar entities, with the method of aggregation being disclosed (aggregation being consolidation). A quantitative and qualitative analysis, taking into account the different risk and return characteristics of each entity, is made in order to … Read more

Last update 18/11/2019 Investments in Joint Ventures Overview that is what this is…… An entity with joint control of an investee shall account for its investment in a joint venture using the equity method except when that investment qualifies for exemption in IAS 28. Investments in Joint Ventures Overview The exemptions include:Investments in Joint Ventures … Read more

Last update 08/12/2019 Investments in Associates 1st and best read – Just as a starter, two definitions! Associate: An entity, including an unincorporated entity such as a partnership, over which an investor has significant influence and which is neither a subsidiary nor an interest in a joint venture. Investments in Associates 1st and best read … Read more

Last update 12/11/2019 Inventory or Equipment – This distinction is important because inventory is current and equipment is non-current property plant and equipment. Inventory is cash flow from operating activities, equipment is cash flow used in investing activities. Inventory is cost of sales and equipment is depreciation. Inventory or Equipment Equipment is recognised component-wise. This … Read more

Last update 20/11/2019 Inventories the highlights as it says provides a high level summary of the accounting and financial reporting in respect of inventory. See Inventories for IFRS for Small and Medium-sized entities, the complete IAS 2 Inventories standards is also available. Inventory is also called stock in trade, or just stock. Inventories the highlights … Read more

Last update 28/10/2019 Introduction to Investment entities is about information provision through financial statements to knowledgeable investors. For many years, preparers and investors in the investment entity industry felt that consolidating the financial statements of an investment entity and its investees does not provide the most useful information. Consolidation made it more difficult for investors … Read more

Last update 23/12/2019 Introduction to a history of innovation in financial reporting – Philips Electronics is a Dutch listed company. Inspired by the fast-growing electricity industry and the promising results of son Gerard’s own experiments to make reliable carbon filaments, in 1891 Frederik Philips financed the purchase of a modest factory in Eindhoven. Their plan? … Read more

Last update 18/12/2019 Introduction IFRS 17 Insurance contracts – More than 20 years in development, IFRS 17 represents a complete overhaul of accounting for insurance contracts. The new standard applies a current value approach to measuring insurance contracts and recognises profit as insurers provide services and are released from risk. The profit or loss earned … Read more

Last update 01/12/2019 Internet domain names – 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 Internet domain … Read more

Last update 20/11/2019 Interest-free term loan No bank debt is a case covering several interesting accounting issues under IFRS 9: Initial recognition, recalculating interest-free to an imputed effective interest and classification of capital contribution, Classification of the loan as at amortised costs (business model test and SPPI test), Impairment triggering Interest-free term loan No bank … Read more