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Last update 14/01/2020 IFRS 3 Fair value of contingent consideration – Contingent consideration often involves the buyer transferring additional consideration to the seller if certain performance targets are met in the future. This allows the buyer to share the risk associated with the future of the business with the seller by making some of the … Read more
Last update 14/01/2020 Revolving credit facilities IFRS 9 – The 2013 ED specified that the maximum period over which expected credit losses (ECLs) are to be calculated should be limited to the contractual period over which the entity is exposed to credit risk. This would mean that the allowance for commitments that can be withdrawn … Read more
When I heard about cryptocurrency Bitcoin for the first time, I could not make up my mind: Is this just a new hype that will go away soon? Or, is this something valuable that will remain here for years, some new asset worth to invest in? I am not going to write my personal opinions … Read more
Last update 14/01/2020 Topics hide Operating activities Financing activities Investing activities Why IAS 7? Performance indicator – Operating Cash Flow/Net Sales Free Cash Flow Example Statement of cash flows Operating activities Operating activities Definition: The activities of the entity that are not investing or financing activities. Cash receipts and cash payments resulting from operations, items … Read more
Last update 14/01/2020 Topics hide Investing activities Financing activities Operating activities Why IAS 7? Performance indicator – Operating Cash Flow/Net Sales Free Cash Flow Example Statement of cash flows Investing activities Definition: The acquisition and disposal of long-term assets and other investments not included in cash equivalents. Cash receipts and cash payments relating to non-current … Read more
Last update 13/01/2020 IFRS 17 Full retrospective approach – When insurers apply IFRS 17 for the first time, the transition provisions of IFRS 17 require full retrospective application. However, a modified retrospective approach or a fair value method are allowed under circumstances where the full retrospective approach is impracticable. Applying the full retrospective approach for … Read more
Last update 12/01/2020 IFRS 7 Credit risk disclosures – Credit risk is part of the risk disclosures requirements under IFRS 7 Financial Instruments: Disclosures. Management should disclose information that enables users of its financial statements to evaluate the nature and extent of risks arising from financial instruments to which the entity is exposed at the … Read more
Last update 11/01/2020 IFRS 7 Nature and extent Financial instruments risks provides the disclosure requirements regarding the nature and extent of risks arising from financial instruments to which the entity is exposed during the period. The IFRS 7 backbone is summarised as follows: Classes of Financial Instruments and Level of Disclosures1 Significance of financial instruments2 … Read more
Last update 09/01/2020 IAS 20 Accounting for emissions trading schemes, emission allowances, certified emission reductions and emission rights will become more important for entities’ financial reporting purposes. Topics hide Emissions trading schemes and certified emission reductions Accounting for emissions trading schemes Certified emission reductions Emission allowances Accounting considerations for emission allowances IAS 20 Accounting for … Read more
Last update 09/01/2020 Topics hide Overview IFRS 13 understand inputs to valuation techniques Fair value hierarchy Level 1 inputs Level 2 and 3 inputs assessment approach Step 1: determine all inputs to valuation techniques Step 2: determine which inputs are significant Step 3: determine if significant inputs are observable or unobservable Pricing services, broker quotes, … Read more