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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

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 22/12/2019 Valuing deferred tax assets – Judgment! Judgment! Judgment! Judgment! Judgment! Judgment! Judgment! Judgment! OK? The telecommunications industry is very dynamic, driven by technological developments and changes in the competitive and regulatory environment. Due to the significant capital expenditure involved in building infrastructure, investment recovery periods tend to be longer than in many … Read more

Last update 25/11/2019 Valuing a Research and development project is an example of a special project in IFRS 3. The reporting entity acquires a research and development (R&D) project in a business combination. The entity does not intend to complete the project. If completed, the project would compete with one of its own projects (to … Read more

Last update 09/01/2020 For any given asset, the value to the business (current costs) basis of measurement tries to answer the question: How much worse off would the business be if it were deprived of it? The answer, as a rule, is given by the asset’s replacement cost. For a liability, value to the business … Read more

Last update 30/09/2019 The value in use of an asset or liability (many times called fulfilment value for liabilities) is the discounted value of the future cash flows attributable to it. However, as cash flows are generated by businesses, or by units within businesses, rather than by individual assets, value in use is a basis … Read more

Last update 18/11/2019 Value a business in emerging markets, is giving rise to some special accounting perks, here are the explanations… The emerging economies in Asia and South America continue experience strong growth over the coming decades. Over the long term, many analysts see China and India moving into the ranks of the world’s largest … Read more

Last update 26/11/2019 Valuation techniques used under the three valuation approaches is a complete overview of valuation techniques useable under IFRS 13. The following are examples of different valuation techniques used under the three valuation approaches (Market approach, Income approach and Cost approach), and examples of common usage of those techniques. Market approach Technique Examples … Read more

Last update 22/12/2019 Valuation of unquoted equity instruments – The three valuation approaches and techniques described in IFRS 13 are: Market approach,  Valuation of unquoted equity instruments Income approach, Adjusted net asset method. IFRS 13  does not prescribe a specific valuation technique, but encourages the use of professional judgment together with consideration of all facts and … Read more

Last update 26/11/2019 Valuation of shares and the enterprise shows the calculations of the valuation of a company through the valuation of its shares (or shareholders’ equity) or of the enterprise (shareholders’ equity minus excess liquidity plus third party debt). The Discounted cash flow calculation method is an income-based approach to valuation that is based … Read more