Just another WordPress site
Last update 18/08/2019 One major tool to finance corporations is via credit line commitments. These are short term credit lines that firms can withdraw from their banks, up to a certain, predetermined ceiling, at a certain cost, usually above the interest rate on long term credit. The credit lines serve corporations to finance, usually, short … Read more
Last update 11/12/2019 Disclosure about insurance risks – Disclosure about the nature and extent of insurance risks An entity needs to disclose information that enables financial statement users to evaluate the nature, amount, timing and uncertainty of future cash flows that arise from contracts within the scope of IFRS 17 [IFRS 17 93 and IFRS … Read more
Last update 18/08/2019 Definition: The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk is the most fundamental financial risk that companies need to manage. Insufficient or no access to liquidity or cash at a required time and … Read more
Last update 20/11/2019 Having identified an investee’s relevant activities, the next step is to determine how directing relevant activities has been organised. IFRS 10 breaks this down into the following two steps (although in practice these steps are normally combined with the identification of relevant activities): Directing relevant activities understanding the decisions about relevant activities … Read more
Last update 18/08/2019 The Expected Credit Losses (ECL) requirement in IFRS 9 makes the initial selection of bonds for fixed income investments by financial institutions much more important, as selecting bonds with good long-term credit health is key to reducing the risk of future P&L fluctuations caused by changes in ECL. This is especially important … Read more
Last update 21/12/2019 Differential cash flow method – Cost-benefit analysis involves comparing the financial results of the different alternatives as well as carrying out “what if” analysis. The “Incremental or Differential Cash Flow Report” allows you to add and subtract projects to generate the incremental cash flow or to combine projects. Topics hide The basic … Read more
Last update 25/08/2019 Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder). Depending on the contract, other events … Read more
Last update 22/12/2019 Differences in international financial reporting – In the current stage of social development, all countries can be divided into the two following groups: Countries with the legislation of general judicial development; Differences in international financial reporting Countries with a well-structured legislative framework. Differences in international financial reporting In the first group of … Read more
Last update 18/08/2019 Liabilities (assets) for current tax comprise the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for a period. Current tax for current and prior periods shall, to the extent unpaid, be recognised as a liability. If the amount already paid in respect of current and prior periods exceeds the … Read more
Last update 26/11/2019 In determining when promises are performance obligations the assessment has to be made whether the performance obligations consist of a series of distinct goods and/or services that are substantially the same and have the same pattern of transfer, OR Determining when promises are performance obligations a series of non-distinct goods and/or services … Read more