IFRS Topics

Last update 26/11/2019 Construction contracts disclosures provides a start to think of what and how to report construction contracts under IFRS 15. And it is more than before. IFRS 15 includes additional qualitative and quantitative requirements on construction contracts disclosures which were not included within IAS 11. Many of these disclosure requirements are narrative in … Read more

Last update 26/11/2019 Construction contracts computations explains some newer features in IFRS 15 such as contract reporting lines and their computations as examples. As part of the replacement of IAS 11 Construction contracts, IAS 18 Revenue and related interpretations by IFRS 15 Revenue from contracts with customers the presentation and disclosure regarding construction contracts has … Read more

Last update 26/11/2019 Construction contract modifications – Ever heard of a constructing a major new building, large bridge, metro railway or other significant construction project without contract modifications? Especially in the large urban agglomerations in this world….. Well then look at this: Construction contract modifications Denver airport construction Metropolitan Transportation Authority (MTA New York) capital … Read more

Last update 30/09/2019 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 transfer of promised goods or services to customers in an … Read more

Last update 23/12/2019 Consolidation of foreign operations – The financial statements of foreign subsidiaries must be translated into the group’s presentation currency (which is often, but not always, the parent’s functional currency). The relevant requirements are included in IAS 21 ‘The Effects of Changes in Foreign Exchange Rates’. Translation of financial statements Consolidation of foreign … Read more

Last update 22/12/2019 Consolidation of a foreign operation – In the past all kinds of different methods of translating foreign currency financial statements existed, called current rate method and temporal rate method. IAS 21.39 defines the current (very practical) approach to translation of foreign currency financial statements for consolidation in the presentation currency as follows: … Read more

Last update 23/12/2019 Consolidation in summary – Consolidated financial statements present the financial position and results of a group (a parent and its subsidiaries) as those of a single economic entity. The key steps to achieve this are: currency conversion: assets, liabilities, equity, income, expenses and cash flow need to be translated into the reporting … Read more

Last update 20/11/2019 IFRS 10 Consolidation Assess control over an investment is the key to consolidate a investee entity or not. Whether a subsidiary or a consolidated structured entity. Topics hide Voting rights in subsidiaries Contractual relations for consolidated structured entities Identifying relevant activities Evaluating power Assessing returns Link between power and returns Potential voting … Read more

Last update 23/12/2019 Consolidation and same reporting date – The basic requirement in IFRS 10 is that each group entity’s financial statements are drawn up to the same reporting date for consolidation purposes. Where reporting dates differ, additional financial information is prepared for consolidation purposes, unless impractical. [IFRS 10 B92]. The financial statements of the … Read more

Last update 26/11/2019 Consolidated subsidiaries joint operations and other entities Investments in joint ventures associates and structured entities – want a quick understanding of all control nuances, read this!  IFRS 12 provides one comprehensive disclosure standard for equity instruments in Subsidiaries, Joint arrangements (Joint operations and Joint ventures), Associates and Structured entities. Hence, management needs … Read more