IFRS Topics

Last update 22/12/2019 Components of a company’s pension liability – A company’s defined-benefit pension plans have three basic components: accrued-benefit obligations, or the future liabilities created by employees’ service; plan assets, used to pay pension benefits; and unamortized actuarial gains and losses. Setting aside unamortized actuarial gains and losses, when plan assets are less than … Read more

Last update 13/11/2019 Complete detection of all IFRS 3 intangibles explains it all, because detecting intangible assets can be a complex and challenging matter. Strategies to detect identifiable intangible assets vary depending on the facts and circumstances of the business combination and usually require a full review of the transaction. It is important to understand … Read more

Last update 16/11/2019 Common Elements of Customer Relationships determines whether a (intangible) customer relationship asset exists for IFRS 3 Business Combinations, one should consider several elements that create that intangible asset. Common Elements of Customer Relationships Topics hide Required Information Expectation of repeat patronage of its customer base Lifespan of customer relationships Common Elements of … Read more

Last update 23/12/2019 Common cash flow classification errors in practice – Although the definitions of operating activities, financing activities and investing activities may appear straightforward, in practice a number of classification errors are frequently made. These include: Common cash flow classification errors in practice 1. Cash outflows related to the acquisition of intangible assets and … Read more

Last update 01/12/2019 Commitments in financial statements are items that are not reported as liabilities as of the balance sheet date. Some of these items are reported in the notes to the financial statements. Examples include non-cancelable (as at balance sheet date) binding contracts to rent space in the future or to purchase items at … Read more

Last update 19/12/2019 Combination of Insurance Contracts – An entity might enter into a series of insurance contracts with the same or a related counterparty to achieve an overall economic effect. In order to ensure that the accounting reflects the substance of these contracts, it might be necessary to combine the group or series of … Read more

Last update 16/09/2019 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 22/12/2019 Collateral in measurement of expected credit losses – In IFRS 9 collateral is a relevant factor in the measurement of expected credit losses. In IFRS 9 the estimate of expected cash shortfalls is reflected by the cash flows expected from collateral and other credit enhancements that are integral to the instrument’s contractual … Read more

Last update 15/12/2019 Closure of a division – Example on recognising and measuring provisions Just to provide the right frame for the case here is a short introduction of the key features of IAS 37 needed to judge the court case. Topics hide Key definitions [IAS 37 10] Closure of a division Recognition of a … Read more

Last update 16/11/2019 Classification of financial assets at amortised cost, at fair value through other comprehensive income (FVOCI) or at fair value through profit or loss (FVPL) is mainly based on the business model assessment and the solely payments of principal and interest (SPPI-) test. A financial asset is classified into a measurement category at inception … Read more