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Last update 02/12/2019 What are related parties – Related parties are relationships in which one party has the ability to control or significantly influence the economic and operating decisions of another. Transactions with related parties are a common feature of business. Typically related party relationships include the following: Enterprises controlled or controlling one another, such … Read more

Last update 30/09/2019 Most entities will be able to identify their operating segments easily by reference to the definition. However, when this is not the case, for example if the chief operating decision maker (CODM) uses more than one set of segment information, other factors may enable the operating segments to be identified. Factors to … Read more

Last update 30/11/2019 What are IFRS Financial Statements – The objective of financial statements is to provide financial information about the reporting entity’s assets, liabilities, equity, income and expenses that is useful to users of financial statements in assessing the prospects for future net cash inflows to the reporting entity and in assessing management’s stewardship … Read more

Last update 16/09/2019 IFRS 15 Revenue from Contracts with Customers (contents page is here) introduced a single and comprehensive framework which sets out how much revenue is to be recognised, and when. The core principle is that a vendor should recognise revenue to depict the transfer of promised goods or services to customers in an … Read more

Last update 24/12/2019 What are Consolidated Financial Statements about – Consolidated Financial Statements are the financial statements of a group of entities in which the assets, liabilities, equity, income, expenses and cash flows of the parent entity and its subsidiary entities are presented as those of a single economic entity. IFRS 10 applies both to … Read more

Last update 19/12/2019 What are Alternative performance measures – Alternative performance measures (APMs) may supplement Generally Accepted Accounting Principles (GAAP) reporting, and often represent an effective way of communicating important entity specific developments. However, APMs need to be defined using appropriate descriptions and disclosures to avoid the risk of misleading the users of the financial … Read more

Last update 28/10/2019 The calculation of the weighted average number of shares outstanding itself is not that difficult (see IAS 33 Example 2 or below example). And it is even easier if no changes have taken place in the number/amount of shares issued during the year. The general principle under IAS 33 is that shares … Read more

Last update 04/12/2019 Warranties in technology industry – A customer may have the option to separately purchase a warranty on a product (e.g., computer hardware, networking equipment) for a period of time at the point of sale or the warranty may be explicitly stated in the contract. IFRS 15  identifies two types of warranties: Warranties … Read more

Last update 17/12/2019 Warranties – Example on recognising and measuring provisions Topics hide The Case: Product warranties Considerations Product warranties Key definitions [IAS 37 10] Recognition of a provision Warranties Related posts: The Case: Product warranties A manufacturer gives warranties at the time of sale to purchasers of its product. Under the terms of the contract … Read more

Last update 19/12/2019 Voluntary separation of non-insurance components The prohibition of voluntary separation of non-insurance components will have a significant impact on some accounting practices. The IASB considered whether to permit an entity to separate a non-insurance component when not required to do so by IFRS 17, for example, some investment components with interrelated cash … Read more