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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

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

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

Last update 01/12/2019 what exactly is a joint venture? – Joint ventures are economic arrangements between two or more parties where key strategic decisions are made unanimously by the entities (the “venturers”) that share control. Key strategic decisions would include decisions that significantly impact sales and purchases of goods and services; research and development of … Read more

Last update 26/12/2019 Topics hide Simplified approach Trade receivables – Short term receivables Simplified approach Trade receivables – Long term receivables Simplified approach Trade receivables Related posts: Simplified approach Trade receivables – Short term receivables For trade receivables and contract assets (including lease receivables) that do not contain a significant financing component in accordance with … Read more

Last update 11/11/2019 Many transactions contain a significant financing component because the customer pays substantially before or after the goods or services have been provided. This can benefit the entity if the customer is financing the transaction by paying early, or this can benefit the customer if the entity finances the customer by delivering the … Read more

Last update 04/12/2019 Short-term lease Truck rental – a case, the question is a lease or not a lease, obtain a thorough understanding on how to assess and identify a lease in line with IFRS 16 Leases. Topics hide The Case The reasoning Exercising an extension option Short-term lease Truck rental Related posts: The Case … Read more

Last update 22/12/2019 In summary – share-based Payment The basic accounting for share-based payments for remuneration is quite simple – expense an amount over a vesting period. The main difficulties are associated with (a) determining a reliable fair value for the instrument, and (b) determining a reasonable estimate of the number of instruments that will … Read more

Last update 27/10/2019 Setting the scene the Expected Credit Losses model, start here to get a good understanding of ECL loss allowances or continue, you decide…… The Expected Credit Losses model (ECL) should be applied to: investments in debt instruments measured at amortized cost; investments in debt instruments measured at fair value through other comprehensive … Read more

Last update 27/11/2019 Setting the hedge ratio is about this ratio between the amount of hedged item and the amount of hedging instrument. For many hedging relationships, the hedge ratio would be 1:1 (or 1 or 100%, notation varies between people) as the underlying of the hedging instrument perfectly matches the designated hedged risk. Setting … Read more