IFRS Topics

Last update 17/12/2019 Disclosure for Insurance contracts – The disclosure requirements in IFRS 17 aim to provide users of the financial statements with a basis to assess the effect that contracts within the scope of IFRS 17 have on an entity’s financial position, financial performance and cash flows. Disclosure for Insurance contracts Disclosure for Insurance … Read more

Last update 27/11/2019 Disclosure financial instruments  tries to address a large part of the significant disclosure requirements included in IFRS 7 Financial Instruments: Disclosure. IFRS 7 requires certain disclosures to be presented by category of an instrument based on the IFRS 9 recognition and measurement categories of financial instruments (previously the IAS 39 measurement categories). … Read more

Last update 11/12/2019 Disclosure about insurance risks – Disclosure about the nature and extent of insurance risks  An entity needs to disclose information that enables financial statement users to evaluate the nature, amount, timing and uncertainty of future cash flows that arise from contracts within the scope of IFRS 17 [IFRS 17 93 and IFRS … Read more

Last update 20/11/2019 Having identified an investee’s relevant activities, the next step is to determine how directing relevant activities has been organised. IFRS 10 breaks this down into the following two steps (although in practice these steps are normally combined with the identification of relevant activities): Directing relevant activities understanding the decisions about relevant activities … Read more

Last update 21/12/2019 Differential cash flow method – Cost-benefit analysis involves comparing the financial results of the different alternatives as well as carrying out “what if” analysis. The “Incremental or Differential Cash Flow Report” allows you to add and subtract projects to generate the incremental cash flow or to combine projects. Topics hide The basic … Read more

Last update 22/12/2019 Differences in international financial reporting – In the current stage of social development, all countries can be divided into the two following groups: Countries with the legislation of general judicial development; Differences in international financial reporting Countries with a well-structured legislative framework. Differences in international financial reporting In the first group of … Read more

Last update 26/11/2019 In determining when promises are performance obligations the assessment has to be made whether the performance obligations consist of a series of distinct goods and/or services that are substantially the same and have the same pattern of transfer, OR Determining when promises are performance obligations a series of non-distinct goods and/or services … Read more

Last update 25/11/2019 Determining stand-alone selling prices is a logical step in determining the correct pricing of a contract under IFRS 15. To allocate the transaction price on a relative stand-alone selling price basis, an entity must first determine the stand-alone selling price of the distinct good or service underlying each performance obligation. Under the … Read more

Last update 24/12/2019 Determining significant increases in credit risk – The transition from recognising 12-month expected credit losses (i.e. Stage 1) to lifetime expected credit losses (i.e. Stage 2) in IFRS 9 Financial Instruments is based on the notion of a significant increase in credit risk over the remaining life of the instrument. The focus … Read more

Last update 22/12/2019 Determining annual pension expense – In general terms, pension expense reported in the statement of profit or loss is driven by how much the pension liability increased during the year, net of returns on the plan’s assets. Normally, a pension liability increases as employees earn additional future benefits from an additional year … Read more