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Last update 27/11/2019 IAS 39 placed several restrictions on the types of instruments that can qualify as hedging instruments for hedge accounting purposes. This is to reflect that hedge accounting was mainly intended to address accounting mismatches that resulted from requiring derivatives to be accounted for at fair value through profit or loss. IFRS 9 … Read more
Last update 25/08/2019 An enhancing qualitative characteristic possessed by financial information that is classified, characterised and presented clearly and concisely. The Conceptual Framework provides the following guidance [Conceptual Framework 2.34 – 2.36]: Classifying, characterising and presenting information clearly and concisely makes it understandable. Some phenomena are inherently complex and cannot be made easy to understand. Excluding information … Read more
Last update 27/11/2019 Hedging a component of a group provides clear examples of hedge accounting in practice. A group designation can also consist of hedging a component of a group of items, such as a layer component of a group. A component could also be a proportion of a group of items, such as 50% … Read more
Last update 25/08/2019 Transaction costs are of importance in IFRS because they are or are not included in the carrying value at initial recognition. The differences are as follows: Assets at amortised costs are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried … Read more
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