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Last update 30/11/2019 In compliance with International Financial Reporting Standards – Any entity asserting that a set of financial statements is in compliance with IFRS complies with all applicable standards and related interpretations, and makes an explicit and unreserved statement of compliance in the notes to the financial statements. Compliance with IFRS encompasses disclosure as … Read more

Last update 26/11/2019 Implied price concession or Impairment loss is about that there is a significant difference in accounting for a price concession and an impairment loss. And we are not even close, it is even worse…. Topics hide What about an implied price concession? Why the hassle? The example case – not completely related … Read more

Last update 15/09/2019 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 26/11/2019 Implication of a Restriction Imposed on the Use of the Asset describes a asset contribution combined with a restriction to the use of the asset. A donor contributes land in an otherwise developed residential area to a not-for-profit neighborhood association. The land is currently used as a playground. The donor specifies that … Read more

Last update 21/12/2019 Implementation IFRS 16 Leases Air France KLM – In the Registration Document 2018 including the annual financial report by AIR FRANCE KLM GROUP the Group implemented IFRS 16 and IFRS 15 and IFRS 9. Here are some excerpts from the document to illustrate the effects: [Air France KLM – 2018 Registration document … Read more

Last update 18/11/2019 Impairment testing cash generating unit with leases is about a right-of-use asset (leased asset) and  such an asset will frequently be included in a cash generating unit to be tested for impairment. At initial recognition, the right-of-use-asset equals the recognised lease liability, plus any lease payments made at or before the commencement … Read more

Last update 19/12/2019 Impairment test before and after IFRS 16 Leases – Below is a simplified example of an impairment test that shows the situation pre-IFRS 16 and post-IFRS 16 and the effects of adjusting the (pre-tax) discount rate. The CGU has a finite life of five years, with no residual value. The lease term … Read more

Last update 06/01/2020 Impairment of right-of-use assets explains the lease assets now on the balance sheet and as a result also susceptible of impairment risks to be accounted for. Impairment of right-of-use assets Right-of-use asset is an asset that represents a lessee’s right to use an underlying asset for the lease term. Right-of-use A contract conveys … Read more

Last update 11/11/2019 Impairment of investments and loans is about impairment in a ‘normal’ business not complicated accounting but straightforward accounting calculations. Impairment of investments and loans Topics hide Normal operations Impairment not in IFRS 9 Financial instruments The 7 Steps for impairment New impairment model ‘General approach’ to impairment Lifetime expected credit loss Default … Read more

Last update 01/11/2019 Possible impairment of intangible assets has to be assessed on a periodical basis. Intangible assets are tested for impairment when there is indication that they might be impaired. Indicators of impairment include legal restrictions, business restructuring, development of new technology, economic changes, etc. Impairment of intangible assets Impairment test for intangible assets … Read more