IFRS Topics

Last update 17/09/2019 Fair value is defined as ‘the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date’, also referred to as the willing buyer-willing seller principle. It is important to note that fair value is a market-based … Read more

Last update 05/12/2019 Fair value disclosures  – The below illustrative disclosures are limited to financial assets and liabilities measured in accordance with IFRS 9. In many cases, insurers may have other balances that require fair value measurement disclosures in accordance with IFRS 13. Fair value hierarchy Fair value disclosures IFRS Link Explanation Fair value disclosures … Read more

Last update 30/09/2019 Measurement choices for recording transactions discusses factors to consider when selecting a measurement basis, whether for initial recognition or subsequent measurement. Here some additional factors to consider at initial recognition are considered. At initial recognition, the cost of an asset acquired, or of a liability incurred, as a result of an event … Read more

Last update 29/11/2019 Factoring without recourse – This is an illustration of how derecognition is applied in practice. The objective is to present the mechanics of applying the IFRS 9 requirements for derecognition of financial assets, starting with an analysis of the transaction using the flowchart [IFRS 9 B3.2.1], and culminating with the initial and … Read more

Last update 29/11/2019 Factoring with recourse – This is an illustration of how derecognition is applied in practice. The objective is to present the mechanics of applying the IFRS 9 requirements for derecognition of financial assets, starting with an analysis of the transaction using the flowchart [IFRS 9 B3.2.1], and culminating with the initial and … Read more

Last update 29/11/2019 Factoring with late payment risk retained – This is an illustration of how derecognition is applied in practice. The objective is to present the mechanics of applying the IFRS 9 requirements for derecognition of financial assets, starting with an analysis of the transaction using the flowchart [IFRS 9 B3.2.1], and culminating with … Read more

Last update 29/11/2019 Factoring of trade debtors is by far the most common transaction entered into by non-financial entities that requires assessment against the derecognition criteria. Surprisingly, IFRS 9 does not mention it in its examples. Factoring of trade debtors can serve as a useful example to illustrate derecognition requirements. Factoring of trade debtors Example: … Read more

Last update 21/12/2019 Extra disclosures IFRS 15 contracts – This part relates to a complete explanation of IFRS 15 Revenue from contracts with customers in respect of Engineering & Construction contracts, see Revenue from Engineering & Construction contracts. Contract balances The disclosures related to contract balances are extensive and intended to enable users to understand … Read more

Last update 22/12/2019 The scope of IFRS 6 Exploration for and Evaluation of Mineral Resources is limited to the recognition, measurement and disclosure of expenditure incurred in the phase covering the Exploration for and Evaluation (Exploration and evaluation) of mineral resources. Although the term used is ‘mineral resources’, the definitions in IFRS 6 clarify that … Read more

Last update 01/12/2019 Executory contracts are contracts under which neither party has performed any of its obligations or both parties have partially performed their obligations to an equal extent. Hence an executory contract contains a combined right and obligation constituting a single asset or liability. The entity has an asset if the terms of the … Read more