IFRS Topics

Last update 26/11/2019 Determine the transaction price property construction considers key implications IFRS 15 Revenue from Contracts with Customers for real estate entities. It provides an overview of the revenue recognition model in IFRS 15 with a focus on entities that: Own, operate and sell real estate Determine the transaction price property construction Provide property … Read more

Last update 25/11/2019 IFRS 15 47 provides the requirements to determine the transaction price. The transaction price is based on the amount to which the entity expects to be ‘entitled’. This amount is meant to reflect the amount to which the entity has rights under the present contract (see contract enforce-ability and termination clauses). That … Read more

Last update 13/09/2019 Businesses are created to bring together diverse resources and generate synergies that will be realised in jointly produced cash flows. While businesses typically acquire assets separately, they realise benefits from them jointly. If no synergies were anticipated, there would be no point in bringing resources together in the first place. As a … Read more

Last update 27/11/2019 Designating proxy hedges is a direct result from IASB’s IFRS 9 Hedge accounting ambition to align hedge accounting more to/into the risk management activities of a reporting entity. But not on a scholastic, black/white, way. The objective of IFRS 9 Hedge accounting is to represent, in the financial statements, the effect of … Read more

Last update 14/11/2019 Derecognition of financial assets has drawn a lot of attention in the Enron scandal. Enron used special purpose entities—limited partnerships or companies created to fulfil a temporary or specific purpose to fund or manage risks associated with specific (financial and/or non-financial) assets. Derecognition of financial assets On October 16, 2001, Enron announced … Read more

Last update 28/11/2019 Derecognise a transfer of a financial instrument or not – to quickly grow comfortable and get a gut feeling for derecognising a financial instrument read this page. Small cases with different inputs with a analysing comment on the case provide a fruitful learning ground. Here are some examples regarding transfers of financial … Read more

Last update 29/11/2019 Derecognise a sale of a financial instrument or not – to quickly grow comfortable and get a gut feeling for derecognising a financial instrument read this page. Small cases with different inputs with a analysing comment on the case provide a fruitful learning ground. Here are some examples regarding sale transactions of … Read more

Last update 23/12/2019 Demand deposits and Cash and cash equivalents – Demand deposits are not defined in IFRS. However, in order to qualify as cash, the related balance needs to have the same liquidity as cash itself, and so funds on ‘demand deposit’ need to be capable of being withdrawn at any time without penalty. … Read more

Last update 13/12/2019 In traditional defined benefit pension plans, workers accrue a promise of a regular monthly payment from the date of their retirement until their death, or, in some cases, until the death of their spouse. The promised life annuity (deferred) is commonly based on a formula linked to an employee’s wages or salary … Read more

Last update 22/12/2019 The availability of future taxable profits – a problem in four parts Deferred tax assets Future tax profits The best starting point for determining the availability of future taxable profits is a company’s own business planning cycle and resulting forecasts. Using the company’s forecasts to assess the value of assets with potentially significant … Read more