IFRS Topics

Last update 02/12/2019 Interest-free demand loan No bank debt – Parent A advances an unsecured loan for €1m to Subsidiary B on 1 January 2018 with the following terms: 0% interest; Interest-free demand loan No bank debt €1m repayable on demand. Interest-free demand loan No bank debt Initial recognition of an interest-free demand loan IFRS … Read more

Last update 22/12/2019 Illustrative examples – Interaction Defined Benefit Asset and Minimum Funding Requirements These examples accompany, but are not part of, IFRIC 14. Example 1 – Effect of the minimum funding requirement when there is an IAS 19 surplus and the minimum funding contributions payable are fully refundable to the entity IE1 An entity … Read more

Last update 02/12/2019 Inter-company loans (in the separate or individual financial statements) See also Loans at below market interest rates and Loans to an employee for further discussions on related party loans. The accounting for the below-market element of an inter-company loan in the separate or individual financial statements of the entities is not addressed … Read more

Last update 22/12/2019 Intangible valuation approach – Valuation assignments must estimate the value of intangibles, recognising the volatility, ongoing creation and problems with protection and enforcement. Business valuation analysts have been independently valuing intangible assets for many years, usually in the context of an exchange between owners (transaction), for estate and gift tax purposes or … Read more

Last update 22/12/2019 Insurances risk adjustment for non-financial risks – The risk adjustment for non-financial risk is the compensation that the entity requires for bearing the uncertainty about the amount and timing of cash flows that arise from non-financial risk [IFRS 17 37]. The risks covered by the risk adjustment for non-financial risk are insurance … Read more

Last update 05/12/2019 Topics hide Insurances Classification and Measurement – Introduction Insurances Classification and Measurement Related posts: Insurances Classification and Measurement – Introduction (first part from https://en.wikipedia.org/wiki/Insurance) Insurances Classification and Measurement Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent … Read more

Last update 18/12/2019 Insurance modelling – The estimates of future cash flows should incorporate all reasonable and supportable information available without undue cost or effort about amount, timing and uncertainty of those future cash flows. To accomplish this, an entity should estimate the expected value of the full range of possible outcomes. Estimates and assumptions … Read more

Last update 13/12/2019 The IFRS 17 Insurance contracts model combines a current balance sheet measurement of insurance contracts with recognition of profit over the period that services are provided. The general model in the standard requires insurance contract liabilities to be measured using probability-weighted current estimates of future cash flows, an adjustment for risk, and … Read more

Last update 21/12/2019 Insurance contract liabilities – The measurement under IFRS 17 requires the determination of a current value of the insurance contract, considering market perspectives for financial risks and the reporting entity’s perspective for all other risks, in IFRS 17 referred to as the Fulfilment Cash Flows. This current value is the basis of … Read more

Last update 17/12/2019 Insurance contract discount rates – The second element of measuring fulfilment cash flows under the general model is an adjustment to the estimates of future cash flows to reflect the time value of money and financial risks related to those cash flows (to the extent that they are not included in the … Read more