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Last update 16/09/2019 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 16/09/2019 This is an example in a small series for illustrating the concepts in What is a good or service that is distinct? The scenarios in the following example demonstrates how two transactions which are substantively very similar but have different legal contract structures are accounted for in the same way (illustrating how … Read more

Last update 16/09/2019 This is an example in a small series for illustrating the concepts in What is a good or service that is distinct? Identify Equipment and consumables industry obligations A vendor enters into a contract to supply a customer with an item of equipment and consumables that are required to operate the equipment. … Read more

Last update 16/09/2019 These are two examples in a small series for illustrating the concepts in What is a good or service that is distinct? Construction of a building Identify Building Construction performance obligations A building contractor (the vendor) enters into a contract to build a new office block for a customer. The vendor is … Read more

Last update 25/11/2019 Identify and separate Intangible assets that is one of the most important exercises in a IFRS 3 business combination. The acquirer recognises, separately from goodwill, the identifiable intangible assets acquired in a business combination. An intangible asset is identifiable if it meets either the separability criterion or the contractual-legal criterion. Identify and … Read more

Last update 30/11/2019 Identify a controlling party – Like the analysis for non-structured entities, an investor ‘controls’ an investee if the investor is exposed to (has rights to) variable returns from its involvement with the investee, and has the ability to affect those returns through its power over the investee. Control involves power, exposure to … Read more

Last update 13/09/2019 Many measurements in financial reporting are, or purport to be, based on current market values. The case for such measurements is strongest where values can be taken from active markets and can therefore be objectively verified. Identification of markets and transactions An active market is described in IFRS 13, as one where … Read more

Last update 30/11/2019 IAS 41 Agricultural activity and produce – The objective of IAS 41 is to prescribe the accounting treatment and disclosures related to agricultural activity. Scope IAS 41 Agricultural activity and produce IAS 41 shall be applied to account for the following when they relate to agricultural activity: biological assets, except for bearer … Read more

Last update 04/12/2019 IAS 38 What are Intangible Assets other than Goodwill – Intangible assets have become a important reporting item, see history of intangible assets to get an introduction. An asset, which has no physical existence such as corporate intellectual properties (patents, trademarks, business methodologies and copyrights), trademarks, patents, software, goodwill and brand recognition … Read more

Last update 18/11/2019 IAS 38 Non-contractual customer relationships, in Business Combinations, this is a intangible asset and is therefore recognised separately from goodwill, provided that its fair value can be measured reliably. This customer-related intangible asset does not arise from contractual or other legal rights, but meets the definition of an intangible asset because it … Read more