IFRS Topics

Last update 26/11/2019 Control in debt restructuring in Structured entity provides a case of obtaining control in a transaction. 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 IFRS 10 Consolidated financial statements. Only one … Read more

Last update 20/11/2019 Control by using options explores the rare situation of not having a straightforward majority of the voting rights in an investee and being in control, but a less straightforward control situation through contractual arrangements (put and/or call options) Following is a case on the assessment whether certain stakeholders in a transaction/structure have … Read more

Last update 29/11/2019 Control and continuing involvement – Under IFRS 9, control is different from the notion of control in IAS 27 – the power to govern so as to obtain benefits. The notion in IAS 27 focuses on the powers of the entity (transferor) and implies an ability to manage the asset actively. Control … Read more

Last update 27/11/2019 Contractually specified risk components – Under IFRS 9, risk components can be designated for non-financial hedged items, provided the component is separately identifiable and the changes in fair value or cash flows of the item attributable to the risk component are reliably measurable. This requirement could be met where the risk component … Read more

Last update 17/12/2019 Contractual service margin – The fourth element of the building blocks in the general model is the contractual service margin (the CSM). This is a component of the asset or liability for the group of insurance contracts that represents the unearned profit the entity will recognise as it provides services in the … Read more

Last update 25/11/2019 Contractual restrictions in license arrangements are of importance in accounting for license arrangements, many media outlets need content, historically IP rights are organised for each country. Still useful information has to be included in IFRS Financial Statements. Many licenses within the entertainment and media industry (E&M industry) include contractual provisions that restrict … Read more

Last update 12/12/2019 This Contractual cash flows SPPI? test is part of the decision model for the classification and measurement of financial assets, that started in the IFRS 9 Framework for financial assets. But you can also read it without doing the test …. off course? Ok so the financial instrument to classify and measure … Read more

Last update 01/12/2019 Contract-based intangible assets – In a Business Combinations, contract-based intangible assets –by definition– are intangible assets and are therefore recognised separately from goodwill, provided that their fair values can be measured reliably. These intangible assets meet the definition of an intangible asset because they again –by definition– arise from contractual or other … Read more

Last update 24/12/2019 Contract with a ship owner is an example of not a lease of a ship and see below for the opposite a lease of a ship, the difference will give you a lesson!!!! The case: Contract with a ship owner Customer enters into a contract with a ship owner (Supplier) for the … Read more

Last update 07/11/2019 Contract modifications and variable consideration are discussed on this page. IFRS 15 Revenue from Contracts with Customers (contents page is here) introduced a single and comprehensive framework which sets out how much revenue is to be recognised, and when. The core principle is that a vendor should recognise revenue to depict the … Read more