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Last update 27/11/2019 Hedges of exposures affecting OCI is showing examples of exposures as hedged items recorded through other comprehensive income (OCI) and hedge accounting of Aggregated exposures. Topics hide Hedges of exposures affecting other comprehensive income Aggregated exposures Hedges of exposures affecting OCI Related posts: Hedges of exposures affecting other comprehensive income Only hedges … Read more
Last update 25/08/2019 Receivables are disaggregated into amounts receivable from trade customers (Trade receivables), receivables from related parties, prepayments and other amounts. (IAS 1 77, IAS 1 78(b)) Trade receivables are amounts billed by a business to its customers when it delivers goods or services to them in the ordinary course of business. These billings … Read more
Last update 27/11/2019 Hedged items General requirements discusses the eligible hedged item and risk components in non-financial items. The general requirements of what qualifies as an eligible hedged item are unchanged compared to IAS 39. A hedged item can be: Hedged items General requirements A recognised asset or liability Hedged items General requirements An unrecognised … Read more
Last update 25/08/2019 Trade and other payables are liabilities (in general payable short term ie within one year) showing separately amounts payable to trade suppliers, payable to related parties, deferred income and accruals (with for example corporate income tax and social securities as separate reporting lines based on local GAAP or reporting habits). A trade … Read more
Last update 23/12/2019 Hedged item Risk components Separately identified – Q: What is the necessary evidence to document that changes in cash flows or fair value attributable to changes in a hedged component are separately identifiable? Does a risk component that is an input in the manufacturing process of a non-financial item suffice? Considerations: Hedged … Read more
Last update 25/08/2019 An enhancing qualitative characteristic possessed by information that is available to decision-makers in time to be capable of influencing their decisions. The Conceptual Framework provides the following guidance [Conceptual Framework 2.33]: Timeliness means having information available to decision-makers in time to be capable of influencing their decisions. Generally, the older the information is the … Read more
Last update 23/12/2019 Hedged item Risk components Reliable measurement – Q: What evidences that changes in cash flows or fair value attributable to changes in a hedged component are reliably measurable? Considerations: Hedged item Risk components Reliable measurement To be eligible for designation as a hedged item, a risk component must be a separately identifiable … Read more
Last update 04/01/2020 Time Value of Money – it is just an IFRS sophistication of interest and discounting to present value. The concept of time value of money is best explained in a simple way: a dollar today is worth more than a dollar in the future. Imagine receiving $1,000 today and putting it in … Read more
Last update 23/12/2019 Hedged item Risk components Market structure – Q: What is the relationship between a risk component in an eligible hedged component of a non-financial item and the market structure in which the hedging activity takes place? Hedged item Risk components Market structure Considerations: Hedged item Risk components Market structureTo be eligible for … Read more
Last update 07/12/2019 The three stages Expected Credit Losses are the way of forward looking loss provision accounting for certain financial assets under IFRS 9 Financial Instruments. After initial recognition, the three stages of impairment loss calculation and interest revenue recognition are applied each reporting date as follows: Stage 1: Credit risk has not increased … Read more