Retrospective or prospective application

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Last update 28/12/2019 Retrospective or prospective application Retrospective application – Applying a new accounting policy to transactions, other events, and conditions as if that policy had always been applied (change in accounting policy) (IAS 8 5). OR Correcting the recognition, measurement and disclosure of amounts of elements of financial statements as if a prior period … Read more

Financial reporting in change

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Last update 21/12/2019 Financial reporting in change – Many different bodies of practices are used around the world for external financial reporting and these include different approaches to measurement. Different jurisdictions have developed their own financial reporting requirements, influenced by differences in the uses made of financial reporting information and in business and regulatory environments. … Read more

Restructuring

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Last update 06/01/2020 IAS 37 Definition of Restructuring: A program that is planned and controlled by management, and materially changes either: The scope of an entity’s activities; or The manner in which those activities are carried out. Restructure costs are recognized as soon as there is a present obligation (legal or constructive) resulting from a … Read more

Financial Position

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Last update 26/12/2019 Financial Position – In short an overview: Financial Position The financial position of an entity is the relationship of its assets, liabilities and equity as of a specific date as presented in the statement of financial position. These are defined as follows: an asset is a resource controlled by the entity as … Read more

Restrictions on transferred assets

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Last update 06/01/2020 Restrictions on transferred assets – Stipulations that limit or direct the purposes for which a transferred asset may be used, but do not specify that future economic benefits or service potential is required to be returned to the transferor if not deployed as specified. Stipulations on transferred assets are terms in laws … Read more

Financial liabilities not at amortised costs

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Last update 01/12/2019 Financial liabilities not at amortised costs – IFRS 9 retains almost all of the existing requirements from IAS 39 on the classification of financial liabilities – including those relating to embedded derivatives – because the Board believes that the benefits of changing practice would not outweigh the costs of the disruption caused … Read more

Residual value

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Last update 23/08/2019 IAS 16 Definition: The residual value of an asset is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. Following … Read more

Financial instruments clearly explained

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Last update 20/11/2019 Financial instruments clearly explained provides the explanations on all aspects of IAS 32, IAS 39, IFRS 7 and IFRS 9 in this website. The need for so many Standards and their regular withdrawal and/or revisions may show the difficulty in regulating the financial reporting of financial assets, financial liabilities and equity instruments! … Read more

Reporting entity

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Last update 22/08/2019 An entity that chooses, or is required, to prepare general purpose financial statements. The Conceptual Framework provides the following guidance [Conceptual Framework 3.10 – 3.14]: A reporting entity can be a single entity or a portion of an entity or can comprise more than one entity. A reporting entity is not necessarily a … Read more

Financial instruments Basic risks

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Last update 05/12/2019 Financial instruments Basic risks are risks that apply to any type of financial instrument. However, depending on the relevant financial instrument, one or several of the risks described here below may apply cumulatively, therefore entailing an overall increase in the level of risk incurred by the investor. Topics hide 1. Economic risk … Read more