Instruments that failed the SPPI test

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Last update 29/11/2019 Instruments that failed the SPPI test – The following financial instruments in IFRS 9 have be carefully judged by the IASB and fail(ed) the Solely Payment of Principal and Interest test. [IFRS 9 B4.1.9D, IFRS 9 B4.1.14] Instruments that fail(ed) the SPPI test Contract description Considerations A bond that is convertible into … Read more

Input method Measuring progress to completion

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Last update 26/11/2019 Input method Measuring progress to completion is part of IFRS 15 Revenue from Contracts with Customers (contents page is here), which 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 … Read more

Indicators of a possible default

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Last update 14/09/2019 This is assist in timely detecting a possible default with one of your customers, it is used in Impairment of investments and loans. Descriptions of indicators of default are classified in three groups: the usual financial ratios derived from financial statements, market criteria, such as market conditions, the customer’s positioning and adaptability, … Read more

In compliance with International Financial Reporting Standards

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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

Implied price concession or Impairment loss

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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

Implicit promises in a contract

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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

Implication of a Restriction Imposed on the Use of the Asset

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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

Implementation IFRS 16 Leases Air France KLM

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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

Impairment testing cash generating unit with leases

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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