IFRS Topics

Last update 02/12/2019 IFRS 16 Leases and joint arrangements – Entities often enter into joint arrangements with other entities for certain activities (e.g., exploration of oil and gas fields, development of pharmaceutical products). A contract for the use of an asset by a joint arrangement might be entered into in a number of different ways, … Read more

Last update 28/11/2019 Topics hide IFRS 16 Leases Introduction IFRS 16 Scope Preceding IFRS Reasons for change – Lessee IFRS 16 Leases – Lessee Improved EBITDA IFRS 16 Leases Related posts: IFRS 16 Leases Introduction IFRS 16 Scope IFRS 16 Leases was introduced by IASB in January 2016. IFRS 16 Leases is effective for periods … Read more

Last update 28/10/2019 IFRS 16 Lease term explained or the lease term includes the following items (IFRS 16 18): non-cancellable period of a lease; IFRS 16 Lease term explained periods covered by an option to extend the lease – if the lessee (customer) is reasonably certain to exercise that option; and periods covered by an … Read more

Last update 21/12/2019 Recognition of a lease IFRS 16 into the details To start for the first time a reporting entity has to review all contracts to see whether a specific contract is a lease only or contains a lease component. Looking at the definition of a lease the reporting entity has to assess whether, … Read more

Last update 26/11/2019 IFRS 15 Vehicle sales by Original Equipment Manufacturers (OEMs) shows examples of real life situations, in this case close at home, selling cars and when is it really sold as per IFRS 15. An Original Equipment Manufacturer (OEM) typically sells the cars and trucks that it produces to a dealer that then … Read more

Last update 06/12/2019 IFRS 15 Software contract modifications – It is common in the software industry to change the scope or price of the contract. For example, a vendor may license software and provide post-contract customer support (PCS) to a customer in an initial transaction and then license additional software to the same customer at … Read more

Last update 28/10/2019 IFRS 15 Revenue recognition is a primary and fundamental subject in the recognition of revenue. There are two ways of recognising revenue, revenue recognition over time and revenue recognition at a point in time. Revenue recognition over time is often referred to as the ‘Percentage of completion‘ method under the (superseded) IAS … Read more

Last update 20/11/2019   IFRS 15 Revenue from Contracts with Customers (here is the full standard) establishes 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 … Read more

Last update 04/12/2019 IFRS 15 Revenue aggregation and disaggregation – The objective of the disclosure requirements in IFRS 15 is to provide “sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers”. To achieve that objective, entities are required … Read more

Last update 03/12/2019 IFRS 15 Presentation in main statements – While an entity must provide sufficient information to meet the objective, the disclosures described in the standards are not intended to be a checklist of minimum requirements. That is, entities do not need to include disclosures that are not relevant or are not material to … Read more