IFRS Topics

Last update 25/11/2019 Identify and separate Intangible assets that is one of the most important exercises in a IFRS 3 business combination. The acquirer recognises, separately from goodwill, the identifiable intangible assets acquired in a business combination. An intangible asset is identifiable if it meets either the separability criterion or the contractual-legal criterion. Identify and … Read more

Last update 30/11/2019 Identify a controlling party – Like the analysis for non-structured entities, an investor ‘controls’ an investee if the investor is exposed to (has rights to) variable returns from its involvement with the investee, and has the ability to affect those returns through its power over the investee. Control involves power, exposure to … Read more

Last update 13/09/2019 Many measurements in financial reporting are, or purport to be, based on current market values. The case for such measurements is strongest where values can be taken from active markets and can therefore be objectively verified. Identification of markets and transactions An active market is described in IFRS 13, as one where … Read more

Last update 30/11/2019 IAS 41 Agricultural activity and produce – The objective of IAS 41 is to prescribe the accounting treatment and disclosures related to agricultural activity. Scope IAS 41 Agricultural activity and produce IAS 41 shall be applied to account for the following when they relate to agricultural activity: biological assets, except for bearer … Read more

Last update 04/12/2019 IAS 38 What are Intangible Assets other than Goodwill – Intangible assets have become a important reporting item, see history of intangible assets to get an introduction. An asset, which has no physical existence such as corporate intellectual properties (patents, trademarks, business methodologies and copyrights), trademarks, patents, software, goodwill and brand recognition … Read more

Last update 18/11/2019 IAS 38 Non-contractual customer relationships, in Business Combinations, this is a intangible asset and is therefore recognised separately from goodwill, provided that its fair value can be measured reliably. This customer-related intangible asset does not arise from contractual or other legal rights, but meets the definition of an intangible asset because it … Read more

Last update 12/11/2019 IAS 36 What is a lease impairment? IAS 36 What is a lease impairment Simple, it is a right-of-use asset and will frequently be included in a cash generating unit to be tested for impairment. Topics hide The right-of-use-asset Lease liability Leases discount rate Offsetting effect WACC – Discount rate What to … Read more

Last update 30/11/2019 IAS 34 Interim financial statements provide all there is to know for producing Interim financial statements, what, where, when and what is in them. Topics hide Objective Scope Definitions Minimum Contents of Interim Condensed Financial Reports Form and Contents of Interim Financial Reports If the entity chooses to prepare the interim financial … Read more

Last update 24/12/2019 IAS 32 Financial Instruments Presentation outlines the accounting requirements for the presentation of financial instruments, particularly as to the classification of such instruments into financial assets, financial liabilities and equity instruments. The standard also provide guidance on the classification of related interest, dividends and gains/losses, and when financial assets and financial liabilities … Read more

Last update 28/10/2019 IAS 2 Example Contractual volume rebates provides an example calculation with regard to the costs of inventory in combination with contractual volume rebates. Topics hide The Case 1 January 20X1 IAS 2 Example Contractual volume rebates Q 1 20X1 Q 2 20X1 Estimated discount calculation/recording Q 3 20X1 Estimated discount calculation/recording Q … Read more