How are operating segments determined?

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Last update 16/09/2019 IFRS 8 8 states that the following factors should be considered when an entity is determining the set of components that constitutes its operating segments: The nature of business activities of each component. To the extent that the higher- level segment information is represented by components that contain dissimilar business activities, while … Read more

Value-at-risk

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Last update 06/12/2019 Value-at-risk – Over the past 20 years the value-at-risk (VAR) analysis has become established as the industry and regulatory standard in measuring market risk. The demands placed on VAR and other similar techniques have grown tremendously, driven by new products such as correlation trading, multi-asset options, power-reverse dual currency swaps, swaps whose … Read more

How and for what purpose is the asset used?

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Last update 17/12/2019 How and for what purpose is the asset used – A customer has the right to direct how and for what purpose the asset is used if, within the scope of its right of use defined in the contract, it can change how and for what purpose the asset is used throughout … Read more

Valuation techniques Market approach

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Last update 06/01/2020 Valuation techniques Market approach – when valuing a company as a going concern there are three main valuation methods used by industry practitioners: the cost approach, the market approach and the income approach.  These are the most common methods of valuation used in investment banking, equity research, private equity, corporate development, mergers & … Read more

History of intangible assets

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Last update 22/12/2019 History of intangible assets – In November 1983, the International Accounting Standards Committee (IASC) approved the International Accounting Standards IAS 22 ‘Accounting for Business Combinations’ that contained the principles for accounting for goodwill. IAS 22, being concerned with business combinations, does not define goodwill. It also does not address the issues of … Read more

Valuation techniques Income approach

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Last update 05/01/2020 Valuation techniques Income approach – When valuing a company as a going concern there are three main valuation methods used by industry practitioners: the cost approach, the market approach and the income approach.  These are the most common methods of valuation used in investment banking, equity research, private equity, corporate development, mergers … Read more

Historical cost measurement

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Last update 30/09/2019 The historical cost of an asset is the amount paid for it and the historical cost of a liability is the amount received in respect of it or the amount expected to be paid to satisfy it. Historical cost accounting is interpreted to require that the amount at which an asset is … Read more

Valuation techniques Cost approach

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Last update 06/01/2020 Valuation techniques Cost approach – When valuing a company as a going concern there are three main valuation methods used by industry practitioners: the cost approach, the market approach and the income approach.  These are the most common methods of valuation used in investment banking, equity research, private equity, corporate development, mergers & … Read more

Hedging of a highly probable debt issuance

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Last update 22/12/2019 Hedging of a highly probable debt issuance – Q: Does IFRS 9 allow a highly probable forecast foreign currency debt issuance as eligible as a hedged item in a cash flow hedge of interest rate risk if the currency of issuance is not yet known? Considerations: At 1 January 200X, entity A, … Read more

Unit of account

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Last update 25/08/2019 The group of rights, the group of obligations or the group of rights and obligations, to which recognition and measurement requirements are applied. But also the level at which an asset or a liability is aggregated or disaggregated in IFRS for recognition purposes based on the particular IFRS standard. Example: Y Ltd … Read more