IFRS Topics

Last update 22/12/2019 Dismantle remove and restore items of PPE – Many entities have obligations to dismantle, remove and restore items of property plant and equipment and in IFRIC 1 such obligations are referred to as ‘decommissioning, restoration and similar liabilities’ [IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities]. Under IAS 16 Property, … Read more

Last update 22/12/2019 Discount rates for intangible assets – An important event in accounting for an acquisition in a Business Combination has become the recognition and measurement of intangible assets, other than goodwill. In the past the difference between the consideration transferred (transaction, purchase or acquisition price) and the fair value of net assets acquired … Read more

Last update 02/11/2019 The definition: Discontinued operations is a component of an entity that either has been disposed off, or is classified as held for sale, and: represents a separate major line of business or geographical area of operations, Discontinued operations is part of a single coordinated plan to dispose of a separate major line … Read more

Last update 28/11/2019 Discontinuation hedge accounting is not a simple as one would think, three choices are available, no discontinuation (i.e. continue the hedge), full discontinuation of the hedge or partial discontinuation of the hedge. An entity would have to discontinue hedge accounting if the qualification criteria are no longer met. As also mentioned at … Read more

Last update 02/12/2019 Disclosures unconsolidated structured entities – The level of disclosure in respect of unconsolidated structured entities will depend on the facts and circumstances of the entity but is likely to be more complex for a bank or other financial institution. Disclosures will be in table forms specifying the following attributes [IFRS 12 26]: … Read more

Last update 29/11/2019 Disclosures subsidiaries and NCI – IFRS 12 requires disclosures for each of an entity’s subsidiaries that have material non-controlling interests. Such disclosures assist users when estimating future profit or loss and cash flows (for example, by identifying the assets and liabilities that are held by subsidiaries, risk exposures of particular group entities, … Read more

Last update 28/11/2019 Disclosures Risk management strategy – The risk management strategy has to be described by type of risk, and this description has to include how each risk arises and how, and to what extent, the risk is managed. This description must also include whether the entity hedges only a part of the risk … Read more

Last update 03/12/2019 Disclosures material joint ventures – The disclosures may be aggregated for interests in similar entities, with the method of aggregation being disclosed (aggregation resembling/replacing consolidation). A quantitative and qualitative analysis, taking into account the different risk and return characteristics of each entity, is made in order to determine the aggregation level. IFRS … Read more

Last update 03/12/2019 Disclosures material joint operations – Unlike joint ventures, IFRS 12 requires only limited quantitative disclosures for joint operations, including information about significant judgments and assumptions made in determining the classification of a joint arrangement that is structured through a separate entity. [IFRS 12 7 (c) and IFRS 12 21 (a)] Disclosures material … Read more

Last update 03/12/2019 Disclosures in First IFRS Financial statements – A first-time adopter must apply all of the presentation and disclosure requirements in IFRSs. IFRS Reference: [IFRS 1, paras 20, 23 – 27A, 29 – 31B] The first-time adopter must also explain how the transition from previous GAAP to IFRSs affected its reported financial position, … Read more