Foreign currency basis spreads

by

Last update 28/11/2019 Foreign currency basis spreads is about one of the other changes from IAS 39 to IFRS 9 in respect of hedge accounting What is the cross currency basis spread In general, the cross currency basis is a measure of dollar shortage in the market. The more negative the basis becomes, the more … Read more

Service concession arrangement

by

Last update 06/01/2020 A service concession arrangement is a binding arrangement between a grantor and an operator in which: The operator uses the service concession asset to provide a public service on behalf of the grantor for a specified period of time; and The operator is compensated for its services over the period of the … Read more

Food for thought for Property plant and equipment

by

Last update 22/12/2019 Food for thought for Property plant and equipment – Economic benefits to be derived from an item of Property, plant and equipment (PPE) can be direct or indirect. An item of PPE may generate economic benefit individually or in association with other assets and liabilities. An item of PPE like safety and … Read more

Separability

by

Last update 23/08/2019 The separability criterion means that an acquired intangible asset is capable of being separated or divided from the acquiree and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identifiable asset or liability. An intangible asset that the acquirer would be able to sell, license or otherwise … Read more

Fixed income Accounting for expected credit losses

by

Last update 20/11/2019 The ability to delay the recognition of credit losses on loans until there is evidence of a trigger event has been identified as one of the weaknesses in the incurred loss model outlined in IAS 39 for Fixed income Accounting for expected credit losses. To tighten up the credit loss rules, a forward-looking … Read more

Securitisation

by

Last update 29/12/2019 Securitisation is a financial process by which an owner of an asset, such as a portfolio of loans, receives cash upfront in exchange for the future cash flows from the asset without selling the asset in a normal contractual sales agreement. This process entails pooling the cash flows and selling them to … Read more

First time adoption IFRS Introduction

by

Last update 03/12/2019 First time adoption IFRS Introduction – It is not only about IFRS 1 when an entity prepares its first IFRS financial statements, but also about some other IFRS because IFRS 1 references to these IFRS standards. Therefore, entities will need to consider the following standards in their first time adoption review process: … Read more

Sales tax and VAT

by

Last update 04/01/2020 Sales tax and VAT Sales tax is collected by the retailer when the final sale in the supply chain is reached via a sale to the end consumer. End consumers pay the sales tax on their purchases. Businesses issue resale certificates to their sellers when buying business supplies/inputs that will be resold … Read more

Right of return

by

Last update 20/12/2019 Right of return – IFRS 15 notes that, in some contracts, an entity may transfer control of a product to a customer, but grant the customer the right to return. In return, the customer may receive a full or partial refund of any consideration paid; a credit that can be applied against … Read more

Financing component in the contract

by

Last update 01/10/2019 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