IFRS Topics

Last update 23/12/2019 Elimination of intra-group transactions – Intra-group transactions are transactions between entities within a group of entities and that group is consolidated into one set of Consolidated Financial Statements. Intra-group transactions are not with third parties outside the scope of consolidation (this means the group of companies consolidated to one unit). In the … Read more

Last update 17/12/2019 Eligibility for the premium allocation approach – The premium allocation approach is permitted if, and only if, at the inception of the group of contracts one of the following conditions are met [IFRS 17 53]: The entity reasonably expects that such simplification would produce a measurement of the liability for remaining coverage … Read more

Last update 19/12/2019 Earnings per share – The objective of IAS 33 Earnings per share is prescribing principles for the determination and presentation of earnings per share, so as to improve performance comparisons between different entities in the same reporting period and between different reporting periods for the same entity. Earnings per share is mostly … Read more

Last update 04/12/2019 Drawbacks and Benefits of Intangible assets – Intangibles have become a more prominent reporting line in IFRS financial reporting. Here are some remarks on their current use. Benefits of Intangible assets Drawbacks and Benefits of Intangible assets Intangible assets form a major proportion of the modern businesses and are a primary area … Read more

Last update 15/05/2019 Did the customer design the asset in a way that predetermines how and for what purpose the asset will be used throughout the period of use? Consideration: The customer designed the asset (or specific aspects of the asset) in a way that predetermines how and for what purpose the asset will be used … Read more

Last update 15/05/2019 Does the customer have the right to operate the asset throughout the period of use, without the supplier having the right to change those operating instructions? Consideration: The customer has the right to operate the asset (or to direct others to operate the asset in a manner that it determines) throughout the … Read more

Last update 15/05/2019 Does the customer, the supplier or neither party have the right to direct how and for what purpose the asset is used throughout the period of use? Consider the explanations in How and for what purpose the asset is used, before answering the question yes or no. You will be going to … Read more

Last update 30/09/2019 Does the customer have the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use? Consider the explanations in the right to obtain economic benefits from use, before answering the question yes or no. You will be going to the next question or … Read more

Last update 24/11/2019 Does a contract include a lease? is a game like type of thing, walk through a few pages and you have decided whether a contract includes a lease or not. As from 1 January 2019, the lessee is required to recognise almost all lease contracts on the balance sheet. The distinction between … Read more

Last update 18/11/2019 Do the SPPI contractual cash flow characteristics test summarises the classification of financial assets. A typical example of an instrument where the contractual cash flows would not meet SPPI would be a debt instrument with an interest rate that is linked to the issuer’s share price. Similarly, a debt instrument with an … Read more