IFRSC Knowledge Base

Last updated: 2 November 2020 Fair value is defined in IFRS 13 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (IFRS 13.9). In other words, it is a current exit price and it is applicable … Read more

Last updated: 10 August 2020 As a general rule, assets and liabilities are presented as current and non-current in the statement of financial position (IAS 1.60). Current / non-current classification of assets General criteria for assets An entity classifies an asset as current when (IAS 1.66): it expects to realise the asset, or intends to … Read more

Last updated: 6 February 2019 According to the research periodically carried out by the IFRS Foundation, IFRS are a basis for preparation of financial statements for (most) public interest entities in 144 jurisdictions. Therefore, it is safe to say that they are used all over the world, with a notable exception of the USA, which … Read more

Last updated: 20 January 2019 IFRS 16 introduces a few practical expedients at the date of its application and transition from IAS 17 as discussed below. Definition of a lease on initial application Entities are permitted not to reassess whether their contracts that are in force at the date of initial application of IFRS 16 … Read more

Last updated: 18 February 2020 Classification of leases Finance lease vs operating lease A lessor must classify each of its leases as either an operating lease or a finance lease (IFRS 16.61). This classification is based on the extent to which the lease transfers the risks and rewards resulting from ownership of an underlying asset. … Read more

Last updated: 22 December 2019 Statement of financial position Right-of-use assets and lease liabilities are presented separately in the statement of financial position or are disclosed in the notes. If the right-of-use assets are not presented separately, they should be included in the same line as is suitable for the underlying assets (IFRS 16.47-48). Profit … Read more

Last updated: 22 December 2019 A sale and leaseback transaction is a transaction where one entity (seller-lessee) transfers an asset to another entity (buyer-lessor) and leases that asset back from the buyer-lessor (IFRS 16.98). For each sale and leaseback transaction, the seller-lessee should determine whether the transfer of an asset is a sale. This should … Read more