Step 3 Determining Transaction Price

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Last update 14/11/2019 Step 3 Determining Transaction Price is all about correct revenue accounting in respect of the transaction price for the contract as part of IFRS 15 Revenue from contracts with customers. Step 3 Determining Transaction Price IFRS 15 The revenue recognition standard provides a single comprehensive standard that applies to nearly all industries … Read more

Step 3 Define significant increase in credit risk

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Last update 14/09/2019 Although the focus for IFRS 9 Financial Instruments is on financial institutions such as banks and insurance companies, ‘normal’ operating entities are also affected by IFRS 9. Maybe their investment and loan portfolios are less complex but in operating a business and as part of the internal credit risk management practice policy … Read more

Step 2 Identify the performance obligations in the contract

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Last update 26/11/2019 Step 2 Identify the performance obligations in the contract is the second step in IFRS 15 Revenue from contracts with customers. IFRS 15 The revenue recognition standard provides a single comprehensive standard that applies to nearly all industries and has changed revenue recognition quite significant. Step 2 Identify the performance obligations in … Read more

Step 2 Decide to use the general or simplified approach

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Last update 14/09/2019 Although the focus for IFRS 9 Financial Instruments is on financial institutions such as banks and insurance companies, ‘normal’ operating entities are also affected by IFRS 9. Maybe their investment and loan portfolios are less complex but in operating a business and as part of the internal credit risk management practice policy … Read more

Step 1 Identify the contract with the customer

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Last update 14/11/2019 Step 1 Identify the contract with the customer is the starting point of IFRS 15 Revenue from contract with customers. IFRS 15 The revenue recognition standard provides a single comprehensive standard that applies to nearly all industries and has changed revenue recognition quite significant. Step 1 Identify the contract with the customer … Read more

Step 1 Define Default

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Last update 14/09/2019 Although the focus for IFRS 9 Financial Instruments is on financial institutions such as banks and insurance companies, ‘normal’ operating entities are also affected by IFRS 9. Maybe their investment and loan portfolios are less complex but in operating a business and as part of the internal credit risk management practice policy … Read more

Staff retraining as a result of changes in the income tax system

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Last update 17/12/2019 Staff retraining as a result of changes in the income tax system – Example on recognising and measuring provisions Topics hide The case: Consideration: Key definitions [IAS 37 10] Recognition of a provision Staff retraining as a result of changes in the income tax system Related posts: The case: The government introduces … Read more

Sponsor Accounting for a Pension Asset

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Last update 22/12/2019 Sponsor Accounting for a Pension Asset – A pension asset arises when total contributions by the sponsor of a defined-benefit plan (plus interest income) are greater than all pension expense since the plan’s inception. Sponsor Accounting for a Pension Asset For example, a pension plan fund had a net pension asset of … Read more

Specified upgrades for software contracts

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Last update 03/12/2019 Specified upgrades for software contracts – Entities may provide customers with the right to specified upgrades or enhancements as part of a software arrangement. Under IFRS 15, entities will need to evaluate whether the rights to receive specified upgrades or enhancements are promised goods or services and potentially separate performance obligations. If … Read more

Some challenges in measurement bases for financial reporting

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Last update 30/09/2019 When applied to financial reporting the term measurement can give a misleading impression of certainty and objectivity. In daily life, measurements are typically made of the physical characteristics of physical objects – such as height, weight, temperature and so on. If accurate measurement tools are employed, information of this sort is objective … Read more