IFRS Topics

Last update 02/12/2019 IAS 23 Borrowing Costs requires that borrowing costs directly attributable to the acquisition, construction or production of a ‘qualifying asset’ (one that necessarily takes a substantial period of time to get ready for its intended use or sale) are included in the cost of the asset. Other borrowing costs are recognised as an expense. … Read more

Last update 27/12/2019 Blogs by IFRS tells it all…. There are a lot of websites and more traditional outlets providing information on International Financial Reporting Standards (IFRS). The actual standards issued by the International Accounting Standards Board (IASB), publications from audit firms, worldwide and country-by-country, providing implementation and change services. Books from (educational) book publishers … Read more

Last update 23/12/2019 Bank overdrafts and cash and cash equivalents – IAS 7 8 notes that although bank borrowings are generally considered to be financing activities, in some countries bank overdrafts form an integral part of an entity’s cash management. In such cases, bank overdrafts are included as a component of cash and cash equivalents … Read more

Last update 17/11/2019 Assets held for sale measurement is part of IFRS 5 Non-current assets held for sale and discontinued operations. Plans to dispose of assets may be an indicator that the asset(s) may be impaired and may accordingly trigger impairment testing procedures. Any impairments (or reversals of previous impairments) are recognised before the entity … Read more

Last update 30/11/2019 Assets as an element of financial statements – Definition: An asset is a present economic resource controlled by the entity as a result of past events. Assets as an element of financial statements An economic resource is a right that has the potential to produce economic benefits. Assets as an element of … Read more

Last update 25/11/2019 Asset-based business valuations are one of the most used valuation approaches in accounting. The asset accumulation method and the adjusted net asset method are both generally accepted business valuation methods of the asset-based business valuation approach. When properly applied using consistent valuation variables, all asset-based business valuation approach methods should conclude approximately … Read more

Last update 30/11/2019 Asset accumulation valuation example  – The asset accumulation method and the adjusted net asset method are both generally accepted business valuation methods of the asset-based business valuation approach. Here is an example of the asset accumulation method: A valuation expert has been retained to estimate the fair market value of the total … Read more

Last update 27/10/2019 The assessment of investment entities is documenting whether an entity meets the definition, all facts and circumstances should be considered, including the entity’s purpose and design [IFRS 10 B85A]. It will often be straightforward to determine whether an entity is an investment entity. However, in view of the fundamental importance this assessment … Read more

Last update 06/12/2019 Assessing information quality for measurement – The Conceptual Framework provides the foundation for Standards and Accounting Guidelines that: contribute to transparency by enhancing the comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions. strengthen accountability by reducing the information gap between the providers of … Read more

Last update 26/11/2019 Assessing de facto control for an operating entity is a case which is important to understand when assessing who is in control in certain cases and under which conditions. Following is a case on the assessment whether certain stakeholders in a transaction/structure have obtained control over a certain entity in the transaction … Read more