Structured entity

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Last update 05/01/2020 A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. Whether an investee … Read more

Group cash pooling and company accounts

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Last update 22/12/2019 Group cash pooling and company accounts – Cash pooling arrangements arise where one group entity (which may be the ultimate group parent, or a fellow subsidiary) acts as the treasury function for the rest of the group. Under these arrangements, one entity within a group holds and maintains all cash balances with … Read more

Stochastic Modeling in Insurance

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Last update 18/12/2019 Stochastic Modeling in Insurance – Some general introduction in addition to this narrative is provided in wikipedia, Stochastic Modeling (insurance). Recent cataclysmic events like the tsunami, torrential downpour, floods, cyclones, earthquakes, etc. underscore the fact that everyone would like to be assured that there is some (non-supernatural) agency to bank upon in … Read more

Government grants and assistance

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Last update 02/12/2019 The receipt of government grants and assistance by an entity may be significant for the preparation of the financial statements for two reasons. Firstly, if resources have been transferred, an appropriate method of accounting for the transfer must be found. Secondly, it is desirable to give an indication of the extent to … Read more

Stand-alone selling price

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Last update 24/08/2019 Exact wording: Stand-alone selling price of a good or a service. The price at which an entity would sell a promised good or service separately to a customer. The best evidence of standalone selling price is the price that the entity charges for the good or service in a separate transaction with a … Read more

Going concern assumption

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Last update 06/01/2020 Going concern assumption – Going concern is one the fundamental assumptions in accounting on the basis of which financial statements are prepared. IAS 1 states “When preparing financial statements, management shall make an assessment of an entity’s ability to continue as a going concern. An entity shall prepare financial statements on a … Read more

Stand ready obligations

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Last update 20/12/2019 Stand ready obligations – In step two of IFRS 15, an entity is required to identify all of the performance obligations promised in a contract with a customer. In many cases, the performance obligations are readily apparent in the contract. In other cases, promises implicit in the contract may qualify as performance … Read more

Glossary

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Last update 11/12/2019 The IFRS glossary – A basic concepts bootcamp A basic concepts bootcamp to guide readers through accounting fundamentals. Fully up-to-date treatment of key IFRS changes including revenue recognition, leasing and insurance accounting. Specialist chapters on banks, insurance accounting, off balance sheet finance, financial instruments and consolidations. Detailed worked examples throughout, supplemented by … Read more

Software warranties

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Last update 20/12/2019 Software warranties – A customer may have the option to separately purchase a warranty on a product (e.g., computer hardware, networking equipment) for a period of time at the point of sale or the warranty may be explicitly stated in the contract. Software warranties Software warranties Software warranties Warranties may fall into … Read more

Future operating losses

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Last update 16/12/2019 Future operating losses – Example on recognising and measuring provisions Topics hide The Case: Background Future operating losses Related posts: The Case: An entity determines that it is probable that a segment of its operations will incur future operating losses for several years. Present obligation as a result of a past obligating … Read more