IFRS Topics

Last update 01/12/2019 Instruments with certain par prepayment features debt instruments with prepayment features that give rise to compensation being paid to the party triggering the possibility to be measured at amortised cost or fair value through other comprehensive income (FVOCI) in certain circumstances. Instruments with certain par prepayment features If a financial asset would … Read more

Last update 29/11/2019 Instruments that may fail the SPPI test – Careful consideration and a documented decision regarding the Solely Payment of Principal and Interest test is needed in the following cases: [IFRS 9 B4.1.13, IFRS 9 BC4.186, IFRS 9 BC4.190] Instruments that may fail the SPPI test Instruments that may fail the SPPI test … Read more

Last update 29/11/2019 Instruments that failed the SPPI test – The following financial instruments in IFRS 9 have be carefully judged by the IASB and fail(ed) the Solely Payment of Principal and Interest test. [IFRS 9 B4.1.9D, IFRS 9 B4.1.14] Instruments that fail(ed) the SPPI test Contract description Considerations A bond that is convertible into … Read more

Last update 26/11/2019 Input method Measuring progress to completion is part of IFRS 15 Revenue from Contracts with Customers (contents page is here), which 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 22/12/2019 Information to be presented either in the statement of financial position or in the notes – Here is a list of items that a reporting entity can either decide to include in the financial position/balance sheet or in the notes. Neither is wrong, the financial statement should provide useful information as a … Read more

Last update 14/09/2019 This is assist in timely detecting a possible default with one of your customers, it is used in Impairment of investments and loans. Descriptions of indicators of default are classified in three groups: the usual financial ratios derived from financial statements, market criteria, such as market conditions, the customer’s positioning and adaptability, … Read more

Last update 30/11/2019 In compliance with International Financial Reporting Standards – Any entity asserting that a set of financial statements is in compliance with IFRS complies with all applicable standards and related interpretations, and makes an explicit and unreserved statement of compliance in the notes to the financial statements. Compliance with IFRS encompasses disclosure as … Read more

Last update 26/11/2019 Implied price concession or Impairment loss is about that there is a significant difference in accounting for a price concession and an impairment loss. And we are not even close, it is even worse…. Topics hide What about an implied price concession? Why the hassle? The example case – not completely related … Read more

Last update 15/09/2019 IFRS 15 Revenue from Contracts with Customers (contents page is here) 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 transfer of promised goods or services to customers in an … Read more

Last update 26/11/2019 Implication of a Restriction Imposed on the Use of the Asset describes a asset contribution combined with a restriction to the use of the asset. A donor contributes land in an otherwise developed residential area to a not-for-profit neighborhood association. The land is currently used as a playground. The donor specifies that … Read more