WP.CUONG.CC

Last update 17/12/2019 The premium allocation approach is a simplified form of measuring insurance contracts in comparison with the general model. Use of the premium allocation approach is optional for each group of insurance contracts that meets the eligibility criteria, at the inception of the group: [IFRS 17:53]a) the entity reasonably expects that this will … Read more

Last update 06/12/2019 Practical implications of IFRS 17 transition choices – The choice between the modified retrospective approach and the fair value approach on transition will impact shareholders’ equity on transition and the release of profit from the insurance contracts in force after the transition. It is also likely to affect operational complexity and the … Read more

Last update 21/12/2019 The reference to the “practical ability” to reassess the risk is intended to differentiate from a pure formal legal right to do so, but where practical facts and circumstances actually prevent the entity from doing so. For example, it might be practically impossible to assess the risk due to any or all … Read more

Last update 25/11/2019 PPE Components and parts is about what to include in cost of letting a constructor build a certain technological type of asset/machinery. A complex asset is comprising of many major and small parts. Its cost excluding directly attributable costs is CU 1,000,000. One of its part costs CU 120,000 and another CU … Read more

Last update 20/11/2019 Power in IFRS-perspective is all about the difference between structured entities (also called Special Purpose Vehicles, think of Enron!) and non-structured entities (strange name for normal (legal) entities) and what control through power means in IFRS 10 Consolidation. Power is defined in IFRS 10 as ‘existing rights that give the current ability … Read more

Last update 23/12/2019 Potential voting rights – An investor may hold instruments that (if exercised or converted), give the investor power to direct the relevant activities. These are called ‘potential voting rights’ and may be held through ownership of the following types of instrument: share options and warrants Potential voting rights convertible bonds Potential voting … Read more

Last update 30/11/2019 Potential to produce economic benefits – This is all about: An economic resource is a right that has the potential to produce economic benefits. In the Conceptual Framework 2018, an asset is now specified as ‘a present economic resource controlled by the entity as a result of past events’. An economic resource, … Read more

Last update 16/09/2019 IFRS 9 sets out guidance (IFRS 9 B5.5.17) to assist entities in determining when a provision for lifetime expected credit losses is required. Entities may consider the following factors when making this determination: Significant changes in internal pricing indicators of credit risk for a particular financial instrument or similar financial instruments with … Read more

Last update 25/11/2019 Portfolio of contracts or performance obligations is a practical solution to revenue recognition in IFRS 15. Although IFRS 15 specifies the accounting for an individual contract with a customer, the Standard allows as a practical expedient that it can be applied to a portfolio of contracts or performance obligations with similar characteristics … Read more

Last update 26/11/2019 Plan to sell a factory Highly probable explores the meaning of highly probable in accounting for IFRS 5 through a clear case. Topics hide The case When a sale is highly probable? 12-month limit Example Commitment to sell a business line Highly probable? Example Sell a non-current asset Plan to sell a factory … Read more