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Last update 21/12/2019 Fair value measurement and disclosure – The following are some examples of assets and liabilities that fall within the scope of IFRS 13 for the purpose of measurement and/or disclosure. IFRS=== Financial reporting item Measurement Disclosure [IAS 39] Financial instruments available-for-sale or held for trading (recurring fair value measurements) Fair value measurement … Read more
Last update 21/08/2019 The realisation principle is the concept that revenue can only be recognised once the underlying goods or services associated with the revenue have been delivered or rendered, respectively. Thus, revenue can only be recognised after it has been earned. The best way to understand the realisation principle is through the following examples: Advance payment … Read more
Last update 17/09/2019 Fair value is defined as ‘the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date’, also referred to as the willing buyer-willing seller principle. It is important to note that fair value is a market-based … Read more
Last update 07/01/2020 In full: Qualitative characteristic of useful financial information A characteristic that makes financial information useful to the primary users of general purpose financial reports. Qualitative characteristic In the Conceptual; Framework further guidance is provided – If financial information is to be useful, it must be relevant and faithfully represent what it purports to represent. … Read more
Last update 05/12/2019 Fair value disclosures – The below illustrative disclosures are limited to financial assets and liabilities measured in accordance with IFRS 9. In many cases, insurers may have other balances that require fair value measurement disclosures in accordance with IFRS 13. Fair value hierarchy Fair value disclosures IFRS Link Explanation Fair value disclosures … Read more
Last update 11/12/2019 Qualifying for Hedge Accounting – Before being able to qualify for hedge accounting it has to be determined whether a hedge relationship is eligible. This means: The hedging relationship should consist only of eligible hedging instruments and hedged items. There are changes to what is eligible for both hedged items and hedging … Read more
Last update 30/09/2019 Measurement choices for recording transactions discusses factors to consider when selecting a measurement basis, whether for initial recognition or subsequent measurement. Here some additional factors to consider at initial recognition are considered. At initial recognition, the cost of an asset acquired, or of a liability incurred, as a result of an event … Read more
Last update 21/08/2019 A puttable instrument is a financial instrument that gives the holder the right to put the instrument back to the issuer for cash or another financial asset or is automatically put back to the issuer on the occurrence of an uncertain future event or the death or retirement of the instrument holder. It should be noted … Read more
Last update 29/11/2019 Factoring without recourse – This is an illustration of how derecognition is applied in practice. The objective is to present the mechanics of applying the IFRS 9 requirements for derecognition of financial assets, starting with an analysis of the transaction using the flowchart [IFRS 9 B3.2.1], and culminating with the initial and … Read more
Last update 04/01/2020 Purpose of related party disclosures – Related party relationships are a normal feature of commerce and business. For example, entities frequently carry on parts of their activities through subsidiaries, joint ventures and associates. In those circumstances, the entity has the ability to affect the financial and operating policies of the investee through … Read more