Regulated interest rates

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Last update 09/12/2019 Regulated interest rates – IFRS 9 recognises that in some jurisdictions, the government or a regulatory authority sets interest rates – e.g. as part of a broad macro-economic policy, or to encourage entities to invest in a particular sector of the economy. In some of these cases, the objective of the time … Read more

Regular way purchase or sale

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Last update 22/08/2019 A purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned. A regular way purchase or sale of financial assets as such means trading in long positions on an exchange. IFRS 9 B3.1.5 and … Read more

Financial assets at fair value through other comprehensive income

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Last update 12/12/2019 This Financial assets at fair value through other comprehensive income is part of the decision model for the classification and measurement of financial assets, that started in the IFRS 9 Framework for financial assets. But you can also read it without doing the test …. off course? This is the classification arrived … Read more

Refund liabilities

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Last update 27/12/2019 Refund liabilities – An entity may receive consideration that it will need to refund to the customer in the future because the consideration is not an amount to which the entity ultimately will be entitled under the contract. These amounts received (or receivable) needs to be recorded as refund liabilities. A refund … Read more

Financial asset valued at amortised costs

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Last update 24/11/2019 This classification of Financial asset valued at amortised costs is part of the decision model for the classification and measurement of financial assets, that started in the IFRS 9 Framework for financial assets. This is the category classification criteria at initial recognition. A financial asset is measured at amortised cost if both … Read more

Recoverable amount

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Last update 22/08/2019 IAS 36 Definition: Recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other … Read more

Fair Value of Tangible Assets

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Last update 22/12/2019 Fair Value of Tangible Assets – In the event of Business Combinations tangible assets (current – non-current) are best valued with the market or income approaches. If adequate data are not available to derive an indication of value through these methods, an appraiser may use the replacement cost method, which adjusts the … Read more

Recognition

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Last update 22/08/2019 The process of capturing, for inclusion in the statement of financial position or the statement(s) of financial performance, an item that meets the definition of an element. It involves depicting the item (either alone or as part of a line item) in words and by a monetary amount, and including that amount in totals in the relevant statement. … Read more

Fair Value of Decommissioning Obligation

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Last update 25/11/2019 Fair Value of Decommissioning Obligation is about a nice example of decommissioning a large oil platform. On 1 January 20X1 Entity A assumes a decommissioning (i.e., asset retirement) liability in a business combination. The entity is legally required to dismantle and remove an offshore oil platform at the end of its useful … Read more

Reclassification of financial assets

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Last update 09/12/2019 Reclassification of financial assets – This section looks at the circumstances in which financial assets are reclassified, and their measurement on reclassification. Financial liabilities cannot be reclassified. [IFRS 9 4.4.2] Reclassification of financial assets – requirements Under IFRS 9, reclassification of financial assets is required if, and only if, the objective of … Read more