IFRS Topics

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 01/03/2020 IFRS 3 Definition: Measurement period – the period after the acquisition date during which the acquirer may adjust the provisional amounts recognized for a business combination, providing the acquirer with a reasonable time to obtain the information necessary to apply the requirements of IFRS 3. The measurement … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 IFRS 3 Executive Compensation in Acquisitions – The acquirer in a business combination may or must agree to assume existing compensation arrangements with employees of the acquiree or may establish new arrangements to compensate those employees for postcombination services. These arrangements may involve cash payments to the … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 IFRS 3 Escrow agreement on acquisition – How should the buyer account for funds placed in escrow? Amounts paid to a third party or the seller’s escrow account may be contingent consideration if the release of the funds is contingent on whether specified future events occur or … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 IFRS 3 Continuing employment – Contingent arrangements payable to former shareholders that continue in employment may be linked to the different future performance metrics of the acquired business. What indicators help differentiate consideration from remuneration of post-combination services? IFRS 3 Continuing employment Contingent arrangements payable to selling … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 IFRS 3 Business combinations achieved in stages – Additional guidance for applying the acquisition method to particular types of business combinations Business combinations achieved in stages. A ‘business combination achieved in stages’ (step acquisition) is a business combination in which the acquirer obtains control of an acquiree … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 Financial guarantee contract – IFRS 17 Definition: A contract that requires the issuer to make specified payments, to reimburse the holder for a loss it incurs because a specified debtor fails to make a payment when due in accordance with the original or modified terms of a … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 23/02/2020 [IFRS 17 Insurance contracts – Fair value approach] An entity can elect to use the fair value approach if the full retrospective approach is impracticable, and it should use the fair value approach if the modified retrospective approach is impracticable. Applying the fair value approach: The contractual … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 23/02/2020 IFRS 16 Leases introduced the term ‘Assets of low value’. IFRS 16 does not provide much guidance to assess what ‘low value’ means. There is no definition. The value referred to as ‘low value’ is the value of the asset when it was new, regardless of the … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 Topics hide IFRS 15 Volume discounts and Margin guarantees – Volume discounts IFRS 15 Volume discounts and Margin guarantees – Profit margin guarantees IFRS 15 Volume discounts and Margin guarantees Related posts: IFRS 15 Volume discounts and Margin guarantees – Volume discounts To entice customers to buy/order … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 IFRS 15 Software industry obligations – This is an example in a small series for illustrating the concepts in What is a good or service that is distinct? Topics hide Scenario A IFRS 15 Software industry obligations Scenario B Scenario C Scenario D 1 Scenario D 2 … Read more