Shares

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Last update 13/12/2019 Shares are financial instruments. A share is a certificate evidencing the rights of the shareholder, to whom it is granted, in a company. Shares may take bearer or registered form. One share of stock represents a fraction of the share capital of a corporation. Shares to be issued – Shares for which consideration … Read more

Foreign currency cash flows

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Last update 22/12/2019 Foreign currency cash flows – IAS 7.25 requires cash flows arising from transactions in a foreign currency to be recorded at the exchange rate between an entity’s functional currency and the foreign currency at the date of the cash flow. A similar approach is required for cash flows of a foreign subsidiary … Read more

Share capital

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Last update 31/12/2019 Share capital is the nominal value of the shares issued within equity of an entity. Only nominal values are debited (repayment of shares) or credited (issuance of shares), the difference with amounts subscribed is credited/debited to a separate account within equity. Share premium is the amount subscribed for share capital in excess … Read more

Foreign currency basis spreads

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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

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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

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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

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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

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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

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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

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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