IFRS Topics

Last update 30/11/2019 Consolidated or unconsolidated financial statements – Consolidated financial statements provide information about the assets, liabilities, equity, income and expenses of both the parent and its subsidiaries as a single reporting entity. That information is useful for existing and potential investors, lenders and other creditors of the parent in their assessment of the … Read more

Last update 03/12/2019 Considerations for cloud arrangements – Cloud services arrangements may include the cloud services (such as software-as-a-service (SaaS)) or other products or services. These arrangements also frequently include a licence of the software, for which the customer may (or may not) have the right to take possession. Cloud services entities also frequently offer … Read more

Last update 04/12/2019 Consideration transferred and Goodwill – I could not obtain a good understanding on ‘Consideration transferred’ from IFRS 3 Business combinations sub 32. So I started writing this piece of text. As per IFRS 3 Consideration transferred is as follows: The acquirer shall recognise goodwill as of the acquisition date measured as the … 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 11/11/2019 Many entities make payments to their customers. In some cases, the consideration paid or payable to a customer represents purchases by the entity of goods or services offered by the customer that satisfy a business need of the entity. In other cases, the consideration paid or payable represents incentives given by the … Read more

Last update 30/11/2019 Conceptual Framework for Financial Reporting – Just as an introduction some language thoughts to better understand what we are talking about. Conceptual: consisting of concepts Conceptual Framework for Financial Reporting Concept: an abstract or generic idea generalized from particular instances Conceptual Framework for Financial Reporting Framework: a basic conceptual structure (as of … Read more

Last update 31/10/2019 Conceptual framework 2018 measurements is part of the explanations on the revised Conceptual Framework for Financial Reporting (the Conceptual Framework 2018) issued in 2018 by IASB. It describes various measurement bases, the information they provide and factors to consider when selecting a measurement basis. The 2010 Conceptual Framework did not include much … Read more

Last update 17/12/2019 The Conceptual Framework for Financial Reporting 2018 (the ‘Conceptual Framework’) describes the objective of, and the concepts for, general purpose financial reporting. The Conceptual Framework’s purpose is to assist the IASB in developing and revising IFRSs that are based on consistent concepts, to help preparers to develop consistent accounting policies for areas … Read more

Last update 08/11/2019 Comprehensive understanding IFRS 15 Disclosures provides clear disclosure 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 the usefulness … Read more

Last update 27/11/2019 Definition Components of a nominal amount Components of a nominal amount are specified part(s) of the amount of an item. This could be a proportion of an entire item (such as, EUR 60 million of a fixed rate loan of EUR 100 million) or a layer component (for example, the bottom EUR … Read more