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Last update 22/12/2019 Dismantle remove and restore items of PPE – Many entities have obligations to dismantle, remove and restore items of property plant and equipment and in IFRIC 1 such obligations are referred to as ‘decommissioning, restoration and similar liabilities’ [IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities]. Under IAS 16 Property, … Read more
Last update 19/08/2019 As a general rule (not only in IFRS) assets should not be carried at amounts greater than those expected to be realised from their sale or use. In the case of inventories this amount could fall below cost when items are damaged or become obsolete, or where the costs to completion have … Read more
Last update 22/12/2019 Discount rates for intangible assets – An important event in accounting for an acquisition in a Business Combination has become the recognition and measurement of intangible assets, other than goodwill. In the past the difference between the consideration transferred (transaction, purchase or acquisition price) and the fair value of net assets acquired … Read more
Last update 11/12/2019 The net investment hedge is one of three hedges defined in IFRS 9, the others are the fair value hedge and the cash flow hedge. Hedge accounting can bring a number of advantages over traditional accounting methods. The core benefit is that by addressing the timings mismatch associated with standard derivative accounting, … Read more
Last update 02/11/2019 The definition: Discontinued operations is a component of an entity that either has been disposed off, or is classified as held for sale, and: represents a separate major line of business or geographical area of operations, Discontinued operations is part of a single coordinated plan to dispose of a separate major line … Read more
Last update 19/08/2019 Other word for equity or the residual interest in the assets of the entity after deducting all its liabilities. Companies with negative net assets (or individuals with negative net worth) are usually in a lot of trouble. Frequently, one solution is to sell off assets in order to generate cash and pay down debt. Companies may also try … Read more
Last update 28/11/2019 Discontinuation hedge accounting is not a simple as one would think, three choices are available, no discontinuation (i.e. continue the hedge), full discontinuation of the hedge or partial discontinuation of the hedge. An entity would have to discontinue hedge accounting if the qualification criteria are no longer met. As also mentioned at … Read more
Last update 19/08/2019 An entity, other than an investor-owned entity, that provides dividends, lower costs or other economic benefits directly to its owners, members or participants. For example, a mutual insurance company, a credit union and a co-operative entity are all mutual entities. A mutual company is a private firm that is owned by its customers … Read more
Last update 02/12/2019 Disclosures unconsolidated structured entities – The level of disclosure in respect of unconsolidated structured entities will depend on the facts and circumstances of the entity but is likely to be more complex for a bank or other financial institution. Disclosures will be in table forms specifying the following attributes [IFRS 12 26]: … Read more
Last update 28/12/2019 Multi-period excess earnings method – Generally, the primary asset of a company is valued using the Multi-period excess earnings method (MPEEM), while a secondary intangible asset is valued using one of the other methods. The majority of acquired, going-concern companies own at least one asset that would be expected to be valued … Read more