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Last update 02/12/2019 Inter-company loans (in the separate or individual financial statements) See also Loans at below market interest rates and Loans to an employee for further discussions on related party loans. The accounting for the below-market element of an inter-company loan in the separate or individual financial statements of the entities is not addressed … Read more

Last update 22/12/2019 Intangible valuation approach – Valuation assignments must estimate the value of intangibles, recognising the volatility, ongoing creation and problems with protection and enforcement. Business valuation analysts have been independently valuing intangible assets for many years, usually in the context of an exchange between owners (transaction), for estate and gift tax purposes or … Read more

Last update 22/12/2019 Insurances risk adjustment for non-financial risks – The risk adjustment for non-financial risk is the compensation that the entity requires for bearing the uncertainty about the amount and timing of cash flows that arise from non-financial risk [IFRS 17 37]. The risks covered by the risk adjustment for non-financial risk are insurance … Read more

Last update 05/12/2019 Topics hide Insurances Classification and Measurement – Introduction Insurances Classification and Measurement Related posts: Insurances Classification and Measurement – Introduction (first part from https://en.wikipedia.org/wiki/Insurance) Insurances Classification and Measurement Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent … Read more

Last update 18/12/2019 Insurance modelling – The estimates of future cash flows should incorporate all reasonable and supportable information available without undue cost or effort about amount, timing and uncertainty of those future cash flows. To accomplish this, an entity should estimate the expected value of the full range of possible outcomes. Estimates and assumptions … Read more

Last update 13/12/2019 The IFRS 17 Insurance contracts model combines a current balance sheet measurement of insurance contracts with recognition of profit over the period that services are provided. The general model in the standard requires insurance contract liabilities to be measured using probability-weighted current estimates of future cash flows, an adjustment for risk, and … Read more

Last update 21/12/2019 Insurance contract liabilities – The measurement under IFRS 17 requires the determination of a current value of the insurance contract, considering market perspectives for financial risks and the reporting entity’s perspective for all other risks, in IFRS 17 referred to as the Fulfilment Cash Flows. This current value is the basis of … Read more

Last update 17/12/2019 Insurance contract discount rates – The second element of measuring fulfilment cash flows under the general model is an adjustment to the estimates of future cash flows to reflect the time value of money and financial risks related to those cash flows (to the extent that they are not included in the … Read more

Last update 01/12/2019 Instruments with certain par prepayment features debt instruments with prepayment features that give rise to compensation being paid to the party triggering the possibility to be measured at amortised cost or fair value through other comprehensive income (FVOCI) in certain circumstances. Instruments with certain par prepayment features If a financial asset would … Read more

Last update 29/11/2019 Instruments that may fail the SPPI test – Careful consideration and a documented decision regarding the Solely Payment of Principal and Interest test is needed in the following cases: [IFRS 9 B4.1.13, IFRS 9 BC4.186, IFRS 9 BC4.190] Instruments that may fail the SPPI test Instruments that may fail the SPPI test … Read more