IFRS Topics

Last update 27/11/2019 Cash flow hedge of a net position has changed from IAS 39 to IFRS 9, this section illustrates these changes for hedge accounting of a net position, by discussing the application under IAS 39 and the changes thereto under IFRS 9. Many entities are exposed to foreign exchange risk arising from purchases … Read more

Last update 13/11/2019 Case value intangibles in business combinations provides a comprehensive business case of valuation of an acquisition of a regional provider of professional services, ProfServCo. The following intangible assets were identified as of the date of the combination: Trade name Case value intangibles in business combinations Service concession number Case value intangibles in … Read more

Last update 23/12/2019 Case IFRS 16 Lease car contract – Because this is a quite frequently used type of lease it is good to get an understanding of how to apply IFRS 16 on a car lease. This includes all the detailed calculations in spreadsheet examples (including Excel functions used) needed to record the correct … Read more

Last update 21/12/2019 Capitalisation of earnings – The Capitalisation of Earnings Method is an income-oriented approach to valuation modeling. This method is used to value a business based on the future estimated benefits, normally using some measure of earnings or cash flows to be generated by the company. These estimated future benefits are then capitalized … Read more

Last update 16/09/2019 As long as discrete information is reviewed by the Chief Operating Decision Maker (CODM) a R&D function can be an operating segment. Typically, an entity’s research and development (R&D) function is a vertically integrated operation (see Operating segments – Vertically integrated operation), in which the R&D activities serve as an integral component … Read more

Last update 16/09/2019 A discontinued operation can meet the definition of an operating segment if: it continues to engage in business activities; Can a discontinued operation be an operating segment? the operating results are regularly reviewed by the CODM; and Can a discontinued operation be an operating segment? discrete financial information is available to facilitate … Read more

Last update 05/12/2019 Calculations IFRS 16 Leases is a case regarding fixed lease payments depending on an index and rent-free period. This case is rather simple, fixed payments depending on an index and rent-free period. Here are only included the journal entries to be made at the inception of the lease contract. This contract comprises … Read more

Last update 22/12/2019 Calculating the value of an acquisition – This is a detailed example of calculating the fair value of an acquisition, using a logical step by step approach and realistic assumptions and determinations based on transaction and market data. Identifying and valuing intangible asset(s) is a broad endeavor and requires careful consideration of; … Read more

Last update 12/12/2019 This Business model hold to collect and sell 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? An entity’s business model for managing … Read more

Last update 12/12/2019 This Business model hold to collect 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 … Read more