IFRS Topics

Last update 21/12/2019 The adjusted net asset method is used to value a business based on the difference between the fair market value of the business assets and its liabilities. Depending on the particular purpose or circumstances underlying the valuation, this method sometimes uses the replacement or liquidation value of the company assets less the … Read more

Last update 02/11/2019 Entities often acquire non-current assets exclusively with a view to disposal/sale (or acquisitions exclusively with a view to disposal). Such a non-current asset will be classified as held-for-sale at the date of the acquisition only if it is anticipated that it will be sold within the one-year period, and it is highly … Read more

Last update 22/12/2019 Acquisition of investment properties – When should a purchase of investment property (or properties) be accounted for as a business combination, and when as a simple asset purchase? This is an important issue because the IFRS accounting requirements for a business combination are very different from asset purchases. Acquisition of investment properties … Read more

Last update 17/12/2019 Acquisition of insurance contracts – Insurance contracts may be acquired in a transfer (often referred to as a portfolio transfer) or in a business combination, as defined in IFRS 3 Business Combinations. In summary, insurance contracts acquired in a transfer or a business combination are classified and measured in the same way … Read more

Last update 02/12/2019 Accounting treatment acquisition of a business or assets – An entity has to determine whether a transaction or other event is a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the assets acquired are not a business, the reporting entity shall account for the transaction … Read more

Last update 26/11/2019 Accounting policy choices impairment of financial assets describes the impairment models available for trade receivables and contract assets with or without a significant financing component and lease receivables. Topics hide The impairment decisions What is a significant financing component? Accounting policy choices impairment of financial assets Other definitions: Trade receivables Contract assets … Read more

Last update 03/12/2019 Accounting Policies to First IFRS Financial statements – An entity must use the same accounting policies in its opening IFRS statement of financial position and throughout all periods presented in its first IFRS financial statements1. Those accounting policies must comply with each IFRSs effective at the end of its first IFRS reporting … Read more

Last update 05/12/2019 Accounting policies for financial instruments – a quite complete overview of all kinds of accounting issues for financial instruments such as measurement categories, initial recognition, amortised costs and effective interest rate, financial assets, impairment, derecognition, financial liabilities, derecognition, and derivatives. Enjoy it! Summary of significant financial instruments accounting policies 1 Financial assets and liabilities 1.1 … Read more

Last update 27/11/2019 Accounting for macro hedging – Financial institutions, particularly retail banks, have as a core business, the collection of funds by depositors that are subsequently invested as loans to customers. This typically includes instruments such as current and savings accounts, deposits and borrowings, loans and mortgages that are usually accounted for at amortised … Read more

Last update 22/12/2019 What is a levy? Accounting for government levies A levy is defined as an outflow of resources (embodying economic benefits) that is imposed by governments (including government agencies and similar bodies whether local, national or international) on entities in accordance with legislation (i.e., laws and/or regulations)1. When do I record a liability … Read more