IFRS Topics

Last update 19/12/2019 Classification of crypto-assets – Crypto-assets often have very different terms and conditions. The holder needs to evaluate their individual terms and conditions carefully in order to determine which International Financial Reporting Standard (IFRS) applies. Depending on the standard that applies, the holder may also need to assess its business model in determining … Read more

Last update 23/12/2019 Classification of cash flows – IAS 7 10 requires an entity to analyse its cash inflows and outflows into three categories: Operating activities, Investing activities, Financing activities. Topics hide Operating activities Investing activities Financing activities Classification of interest and dividends Classification of cash flows Related posts: Operating activities It is often assumed … Read more

Last update 03/12/2019 Classification measurement and impairment of financial assets – IFRS 9 Financial Instruments (IFRS 9) introduced major accounting changes for financial assets that significantly impacted the financial statements of all types of lending organizations, such as banks, financial cooperations, and leasing companies. Here the focus is on classification and measurement – including impairment loss … Read more

Last update 29/11/2019 Classification for investments in bonds – Under IFRS 9, bonds should be classified and measured based on an entity’s business model for managing the bonds and their contractual cash flow characteristics (SPPI Test) (see table below). The business model refers to how an entity manages bonds in order to generate cash flows—either … Read more

Last update 21/12/2019 Classification and Measurement of Financial Liabilities – The IFRS 9 requirements for the classification and measurement of financial liabilities are substantially unchanged from IAS 39 except for the following: Removal of the cost exception for derivative financial liabilities. Classification and Measurement of Financial Liabilities Changes in fair value as a result of … Read more

Last update 16/09/2019 The following are a list of distinguished claims against an entity with a short explanation. Some claims take priority over other claims (‘are senior to’), which is also why the liquidation example is used. It also shows different types of equity claims, that also have a hierarchy between themselves regarding their seniority. … Read more

Last update 11/12/2019 Topics hide Changes in significant accounting policies Related posts: Changes in significant accounting policies Notes to the consolidated financial statements1 The basis of preparation comprises the notes to the financial statement relating to: IAS 8 28 5. Changes in significant accounting policies2 The Group has initially applied IFRS 15 (see A) and … Read more

Last update 23/12/2019 Changes in liquidity and risk of cash equivalents – Cash equivalents are short-term, highly liquid investments with a maturity date that was 3 months or less at the time of purchase. In other words, there is very little risk of collecting the full amount being reported. So if a corporate bond matures … Read more

Last update 01/12/2019 Changes in contractual provisions – How do you account for contractual provisions in a financial instruments contract that change the timing or amount of contractual cash flows? Contractual cash flows of some financial assets may change over their lives. For example, an asset may have a floating interest rate. Also, in many … Read more

Last update 26/11/2019 Changes in contracted transaction price under IFRS 15 can occur for various reasons. The standard requires entities to determine the transaction price at contract inception. However, there could be changes to the transaction price after contract inception. For example, when a contract includes variable consideration, entities need to update their estimate of … Read more