IFRS Topics

Last update 22/12/2019 Cross-currency swap – In a currency swap operation, also known as a cross-currency swap, the parties involved agree under contract to exchange the following: the principal amount of a loan in one currency and the interest applicable on it during a specified period of time for a corresponding amount and applicable interest … Read more

Last update 27/11/2019 Credit risk on the hedging instrument and credit risk on the hedged item and the impact of changes in these credit risks should not be of a magnitude such that it dominates the value changes, even if there is an economic relationship between the hedged item and hedging instrument. Credit risk can … Read more

Last update 27/11/2019 IFRS 9 requires that, to achieve hedge accounting, the impact of changes in credit risk (this is credit risk on the hedging instrument and credit risk on the hedged item) should not be of a magnitude such that it dominates the value changes, even if there is an economic relationship between the hedged … Read more

Last update 27/11/2019 Many financial institutions hedge the credit risk (i.e. insure credit risk exposures) arising from loans or loan commitments using credit default swaps (CDS). This would often result in an accounting mismatch, as loans and loan commitments are typically not accounted for at fair value through profit or loss. The simplest accounting would … Read more

Last update 05/12/2019 Creating a new contract or not – What is a modification of a contract and what is a new contract? The way chosen in IFRS 15 Revenue from Contracts with Customers is that the general rule is that a modification is a continuation of an existing contract with some changes. To account … Read more

Last update 07/11/2019 The accounting rule: Costs to issue or buy back issued shares by the issuing entity are accounted for as a deduction from equity, net of any related income tax benefit (the issue or buy back not being part of a business combination).  An entity typically incurs various costs in issuing or acquiring its … Read more

Last update 16/09/2019 The accounting rule: Costs of issuing or reacquiring equity instruments (other than in a business combination) are accounted for as a deduction from equity, net of any related income tax benefit. Costs of issuing and reacquiring equity instruments An entity typically incurs various costs in issuing or acquiring its own equity instruments. … Read more

Last update 25/11/2019 IAS 16 22 sets out the core principle for determining the cost of self-constructed assets. Here is a very practical example to quickly understand and solve any IFRS issues. The cost of a self-constructed asset is determined using the same principles as applicable to an purchased asset. If an entity makes similar … Read more

Last update 07/11/2019 Correct presentation of revenue in IFRS 15 provides explicit presentation requirements, which are quite detailed and increase the volume of required disclosures that entities have to include in their interim and annual financial statements. Many of the requirements in IFRS 15 involve information that entities did not previously disclose, all in all … Read more

Last update 22/12/2019 Corporate taxes – also called income taxes, but than for corporates. Here we go…………  Just a reminder …… Two things in life are certain: …… DEATH……. and ……..TAXES Topics hide What is it about? Current tax – Recognition and measurement Deferred tax – Recognition and measurement Deferred tax assets Deferred tax liabilities Corporate … Read more