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Last update 05/01/2020 Most advantageous market – The market that maximises the amount that would be received to sell the asset or minimizes the amount that would be paid to transfer the liability, after taking into account transaction costs and transport costs. Principal market – The market with the greatest volume and level of activity … Read more
Last update 03/12/2019 Disclosures material joint ventures – The disclosures may be aggregated for interests in similar entities, with the method of aggregation being disclosed (aggregation resembling/replacing consolidation). A quantitative and qualitative analysis, taking into account the different risk and return characteristics of each entity, is made in order to determine the aggregation level. IFRS … Read more
Last update 19/08/2019 Units of currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency. For translation of the amounts in foreign currency to your functional currency, the standard IAS 21 states that you should re-calculate all items after initial recognition using exchange rate based … Read more
Last update 03/12/2019 Disclosures material joint operations – Unlike joint ventures, IFRS 12 requires only limited quantitative disclosures for joint operations, including information about significant judgments and assumptions made in determining the classification of a joint arrangement that is structured through a separate entity. [IFRS 12 7 (c) and IFRS 12 21 (a)] Disclosures material … Read more
Last update 19/08/2019 The amount arising from adjusting the gross carrying amount of a financial asset/hedged item to reflect the renegotiated or modified contractual cash flows in fair value hedges. The entity recalculates the gross carrying amount of a financial asset as the present value of the estimated future cash payments or receipts through the … Read more
Last update 03/12/2019 Disclosures in First IFRS Financial statements – A first-time adopter must apply all of the presentation and disclosure requirements in IFRSs. IFRS Reference: [IFRS 1, paras 20, 23 – 27A, 29 – 31B] The first-time adopter must also explain how the transition from previous GAAP to IFRSs affected its reported financial position, … Read more
Last update 07/01/2020 Measurement uncertainty – Uncertainty that arises when the result of applying a measurement basis is imprecise and can be determined only with a range. Measurement uncertainty arises when a measure cannot be determined directly by observing prices in an active market and must instead be estimated. The level of measurement uncertainty associated … Read more
Last update 03/12/2019 Disclosures immaterial associates and joint ventures – An entity provides the disclosures separately for individually immaterial associates and individually immaterial joint ventures – they are not combined. [IFRS 12 21 (c) and IFRS 12 B16] Based on IFRS 12 21, IFRS 12 B16, the disclosures are made like in this example from … Read more
Last update 19/08/2019 An identified feature of an item being measured (for example, historical cost, fair value or fulfilment value). The result of measuring an asset, a liability or equity, or an item of income or expense, on a specified measurement basis. The process of quantifying, in monetary terms, information about an entity’s assets, liabilities, … Read more
Last update 08/12/2019 Disclosures Hedges Financial position – Performance on the financial position and performance IFRS 7 sets out a specific requirement to disclose the effect hedge accounting has on the entity’s financial position and the performance. All disclosures are required in a tabular format and by type of risk. Disclosures Hedges Financial position Instead … Read more