Earnings per share

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Last update 19/12/2019 Earnings per share – The objective of IAS 33 Earnings per share is prescribing principles for the determination and presentation of earnings per share, so as to improve performance comparisons between different entities in the same reporting period and between different reporting periods for the same entity. Earnings per share is mostly … Read more

Onerous contract

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Last update 01/09/2019 A contract for the exchange of assets or services in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits or service potential expected to be received under it. So these a loss-making contracts. Such a contract can represent a main financial burden for an entity. Here … Read more

Drawbacks and Benefits of Intangible assets

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Last update 04/12/2019 Drawbacks and Benefits of Intangible assets – Intangibles have become a more prominent reporting line in IFRS financial reporting. Here are some remarks on their current use. Benefits of Intangible assets Drawbacks and Benefits of Intangible assets Intangible assets form a major proportion of the modern businesses and are a primary area … Read more

Offsetting

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Last update 07/01/2020 Offsetting – Identifying, recognising and measuring both an asset and a liability as separate units of account, but presenting them in the statement of financial position as a single net amount. Offsetting, otherwise known as netting, takes place when entities present their rights and obligations to each other as a net amount … Read more

Does the contract contain a lease 5

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Last update 15/05/2019 Did the customer design the asset in a way that predetermines how and for what purpose the asset will be used throughout the period of use? Consideration: The customer designed the asset (or specific aspects of the asset) in a way that predetermines how and for what purpose the asset will be used … Read more

Obligating event

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Last update 21/08/2019 An obligating event is an event that creates a legal or constructive obligation that results in an entity having no realistic alternative to settling that obligation. A legal obligation is an obligation that derives from: a contract (through its explicit or implicit terms); legislation; or other operation of law. A constructive obligation … Read more

Does the contract contain a lease 4

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Last update 15/05/2019 Does the customer have the right to operate the asset throughout the period of use, without the supplier having the right to change those operating instructions? Consideration: The customer has the right to operate the asset (or to direct others to operate the asset in a manner that it determines) throughout the … Read more

Notes to the financial statements

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Last update 19/08/2019 Notes to the financial statements that contain information in addition to that presented in the statement of financial position, statement of financial performance, statement of changes in net assets/equity and cash flow statement. Notes provide narrative descriptions or disaggregations of items disclosed in those statements and information about items that do not … Read more

Does the contract contain a lease 3

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Last update 15/05/2019 Does the customer, the supplier or neither party have the right to direct how and for what purpose the asset is used throughout the period of use? Consider the explanations in How and for what purpose the asset is used, before answering the question yes or no. You will be going to … Read more

Non-recourse assets

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Last update 09/12/2019 Non-recourse assets – In some cases, a financial asset may have contractual cash flows that are described as principal and interest, but that do not represent the payment of principal and interest. The essential difference between a recourse and non-recourse asset has to do with which assets a lender can claim against … Read more