WP.CUONG.CC

Last update 08/12/2019 The Acquisition Method illustrated – a little history of acquisitions, mergers, purchase accounting, pooling of interests, goodwill, intangible assets acquired and the current end to this IFRS 3 Business Combinations. This is a developing story I will add stuff to end with a complete overview. The short case: The Acquisition Method illustrated … Read more

Last update 01/12/2019 Technology-based intangible assets Other technology – In a Business Combinations, this is a intangible asset and is therefore recognised separately from goodwill, provided that its fair value can be measured reliably. This customer-related intangible asset does not arise from contractual or other legal rights, but meets the definition of an intangible asset … Read more

Last update 04/12/2019 Technology reseller arrangements – IFRS 15 also changed practice for entities that sell their products through distributors or resellers (collectively referred to in this section as resellers). It is common in the technology industry for entities to provide resellers with greater rights than end-customers. For example, an entity may provide a reseller … Read more

Last update 05/12/2019 Technology consignment arrangements – Entities may deliver inventory on a consignment basis to other parties (e.g., distributor, dealer). By shipping on a consignment basis, consignors are able to better market products by moving them closer to the end-customer. However, they do so without selling the goods to the intermediary (consignee). Technology consignment … Read more

Last update 04/12/2019 Technology bill-and-hold arrangements – In certain technology transactions, the entity fulfils its obligations and invoices the customer for the work performed, but does not ship the goods until a later date. These transactions, often called ’bill-and-hold‘ transactions, are usually designed this way at the request of the customer for a variety of … Read more

Last update 23/12/2019 Taking a bath accounting big bath strategies – This is a note on the innovative history of Philips’ financial reporting, see the ‘Introduction to a history of innovation in financial reporting‘. From 1912 onwards, 11 periods are identified in which different CEO’s were in charge. A distinction has to be made between … Read more

Last update 13/09/2019 Use the hyperlinks to get more information, this is the table 6.1 from chapter 6 Measurement of the Conceptual Framework 2018. Measurement involves assigning monetary amounts at which the elements of the financial statements are to be recognised and reported. The IFRS Framework acknowledges that a variety of measurement bases are used … Read more

Last update 03/11/2019 Summary impairment of financial assets is the centre text to quickly understand all IFRS aspects to recording loss allowances, when, how much, how often? Topics hide Impairment requirements Impairment model Initial recognition The first question – Increased credit risk since initial recognition? The second question – Which impairment approach is chosen? The … Read more

Last update 01/12/2019 Substance of contractual rights and contractual obligations – Accounting for something in accordance with its legal form, instead of its economic substance, does not result in a faithful representation. accounting for something in accordance with its legal form (even with appropriate disclosures) cannot result in a faithful representation if the economic substance … Read more

Last update 16/11/2019 The subsequent assessment of effectiveness has become less burdensome, but an entity must use a method that captures the relevant characteristics of the hedging relationship, including the sources of hedge ineffectiveness that are expected to affect the hedging relationship during its term. Depending on those factors, entities can perform either a qualitative … Read more