Stewardship and agency theory

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Last update 30/11/2019 Stewardship and agency theory – This part is a more detailed explanation of the revised Conceptual Framework for Financial Reporting 2018 (Conceptual Framework) issued by the International Accounting Standards Board (IASB) regarding Control as part of chapter 4 – The Elements of Financial Statements, section 4.25 on one party (a principal) engaging … Read more

Step 7 Measure expected credit losses

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Last update 18/09/2019 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 6 Apply the provision matrix

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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 5 Recognise the revenue when the entity satisfies each performance obligation

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Last update 26/11/2019 Step 5 Recognise the revenue when the entity satisfies each performance obligation the the end of the process in revenue recognition as introduced by IFRS 15 Revenue from contracts with customers. Step 5 Recognise the revenue IFRS 15 The revenue recognition standard provides a single comprehensive standard that applies to nearly all … Read more

Step 5 Allocate receivables to high and low 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 4 Define low 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 4 Allocate the transaction price

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Last update 26/11/2019 Step 4 Allocate the transaction price to each specific performance obligation is the fourth step in the process required by IFRS 14 Revenue from contracts with customers in order to properly recognise revenue. IFRS 15 The revenue recognition standard provides a single comprehensive standard that applies to nearly all industries and has … Read more

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