IFRS Topics

Last update 01/10/2019 This site uses cookies – small text files that are placed on your machine to help the site provide a better user experience. In general, cookies are used to retain user preferences, store information for things like shopping carts, and provide anonymised tracking data to third party applications like Google Analytics. As … Read more

Last update 26/11/2019 Convertible notes Basic requirements is a introduction of an important financing arrangement for high tech start ups all over the world. Convertible notes are financial instruments that fall within the scope of IAS 32 Financial Instruments: Presentation and IFRS 9 Financial Instruments. IAS 32 contains the definitions of financial liabilities, financial assets … Read more

Last update 26/11/2019 Convertible note with embedded derivative The numbers provides the numbers to the case and the journal entries and calculations. In practice, many conversion features in convertible notes fail equity classification, which means that the conversion feature is a financial liability. Convertible note with embedded derivative The numbers The reason that many conversion … Read more

Last update 26/11/2019 Convertible note with embedded derivative Basics provides an introduction to this accounting subject, completed in the calculation example provided here. In practice, many conversion features in convertible notes fail equity classification, which means that the conversion feature is a financial liability. The reason that many conversion features fail equity classification is that … Read more

Last update 18/11/2019 Control without a majority of voting rights is a more special case of structuring the investments of investors in companies. IFRS 10 confirms that an investor with the majority of an investee’s voting rights controls an investee in most circumstances. In the absence of other relevant factors the majority vote holder has … Read more

Last update 26/11/2019 Control Structured entity with Credit-linked notes provides a case regarding control through contractual arrangements in a Special Purpose Vehicle or better NO control. Following is a case on the assessment whether certain stakeholders in a transaction/structure have obtained control over a certain entity in the transaction in line with the requirements of … Read more

Last update 23/12/2019 Control over structured entities – Although IFRS 10 has no separate guidance on Special Purpose Entities (SPEs), it does have guidance on assessing control over entities for which voting rights do not have a significant effect on returns. Despite the lack of a definition, entities typically considered to be SPEs in practice … Read more

Last update 20/11/2019 Control over CMBS issuer Structured entity is a case on the assessment whether certain stakeholders in a transaction/structure have obtained control over a certain entity in the transaction in line with the requirements of IFRS 10 Consolidated financial statements. Only one stakeholder can be in control! [IFRS 10 B16] Or no stakeholder … Read more

Last update 30/11/2019 Control of an economic resource – This is all about: A present economic resource controlled by the entity as a result of past events. Two very simple examples to start with: Pat Co has purchased a patent for $20,000. The patent gives the company sole use of a particular manufacturing process which … Read more

Last update 18/11/2019 This is a discussion on IFRS 10 – IFRS 12 Control Joint control Significant influence and the accounting applied. It is added with some other logical IFRS topics: the fair value option and the other investments (no control, no joint control and no significant influence). Topics hide Control Joint control Joint control … Read more