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Last update 12/11/2019 Inventory or Equipment – This distinction is important because inventory is current and equipment is non-current property plant and equipment. Inventory is cash flow from operating activities, equipment is cash flow used in investing activities. Inventory is cost of sales and equipment is depreciation. Inventory or Equipment Equipment is recognised component-wise. This … Read more

Last update 20/11/2019 Inventories the highlights as it says provides a high level summary of the accounting and financial reporting in respect of inventory. See Inventories for IFRS for Small and Medium-sized entities, the complete IAS 2 Inventories standards is also available. Inventory is also called stock in trade, or just stock. Inventories the highlights … Read more

Last update 28/10/2019 Introduction to Investment entities is about information provision through financial statements to knowledgeable investors. For many years, preparers and investors in the investment entity industry felt that consolidating the financial statements of an investment entity and its investees does not provide the most useful information. Consolidation made it more difficult for investors … Read more

Last update 23/12/2019 Introduction to a history of innovation in financial reporting – Philips Electronics is a Dutch listed company. Inspired by the fast-growing electricity industry and the promising results of son Gerard’s own experiments to make reliable carbon filaments, in 1891 Frederik Philips financed the purchase of a modest factory in Eindhoven. Their plan? … Read more

Last update 18/12/2019 Introduction IFRS 17 Insurance contracts – More than 20 years in development, IFRS 17 represents a complete overhaul of accounting for insurance contracts. The new standard applies a current value approach to measuring insurance contracts and recognises profit as insurers provide services and are released from risk. The profit or loss earned … Read more

Last update 01/12/2019 Internet domain names – In a Business Combinations, this is a intangible asset and is therefore recognised separately from goodwill, provided that its fair values can be measured reliably. This marketing-related intangible asset meets the definition of an intangible asset because it arises from contractual or other legal rights. An Internet domain … Read more

Last update 20/11/2019 Interest-free term loan No bank debt is a case covering several interesting accounting issues under IFRS 9: Initial recognition, recalculating interest-free to an imputed effective interest and classification of capital contribution, Classification of the loan as at amortised costs (business model test and SPPI test), Impairment triggering Interest-free term loan No bank … Read more

Last update 02/12/2019 Interest-free demand loan No bank debt – Parent A advances an unsecured loan for €1m to Subsidiary B on 1 January 2018 with the following terms: 0% interest; Interest-free demand loan No bank debt €1m repayable on demand. Interest-free demand loan No bank debt Initial recognition of an interest-free demand loan IFRS … Read more

Last update 22/12/2019 Illustrative examples – Interaction Defined Benefit Asset and Minimum Funding Requirements These examples accompany, but are not part of, IFRIC 14. Example 1 – Effect of the minimum funding requirement when there is an IAS 19 surplus and the minimum funding contributions payable are fully refundable to the entity IE1 An entity … Read more

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