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Last update 25/11/2019 IFRS 15 47 provides the requirements to determine the transaction price. The transaction price is based on the amount to which the entity expects to be ‘entitled’. This amount is meant to reflect the amount to which the entity has rights under the present contract (see contract enforce-ability and termination clauses). That … Read more
Last update 05/01/2020 Jointly Sponsored Pension Plans A jointly sponsored pension plan is a defined-benefit plan in which an employer shares risks and rewards in the plan equally with the plan members, who are current employees and retirees. Since there are usually many individual plan members, an organization is typically formed to represent all of … Read more
Last update 13/09/2019 Businesses are created to bring together diverse resources and generate synergies that will be realised in jointly produced cash flows. While businesses typically acquire assets separately, they realise benefits from them jointly. If no synergies were anticipated, there would be no point in bringing resources together in the first place. As a … Read more
Last update 27/12/2019 Joint control starts with the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. In assessing whether an entity has joint control of an arrangement, an entity shall assess first whether all the parties, or … Read more
Last update 27/11/2019 Designating proxy hedges is a direct result from IASB’s IFRS 9 Hedge accounting ambition to align hedge accounting more to/into the risk management activities of a reporting entity. But not on a scholastic, black/white, way. The objective of IFRS 9 Hedge accounting is to represent, in the financial statements, the effect of … Read more
Last update 25/11/2019 Under IFRS 11, ‘Joint Arrangements’, investments in joint arrangements are classified as either joint operations or joint ventures, depending on the contractual rights and obligations that each investor has, rather than the legal structure of the joint arrangement. A reporting entity has assessed the nature of its joint arrangements and determined whether that it has … Read more
Last update 14/11/2019 Derecognition of financial assets has drawn a lot of attention in the Enron scandal. Enron used special purpose entities—limited partnerships or companies created to fulfil a temporary or specific purpose to fund or manage risks associated with specific (financial and/or non-financial) assets. Derecognition of financial assets On October 16, 2001, Enron announced … Read more
Last update 27/12/2019 Investments in Associates and Joint Ventures are two types of investments that are in use by many larger groups of companies. Topics hide Associate Joint venture Strategic investments in financial assets The equity method Investments in associates Initial measurement Subsequent measurement Investments in Associates and Joint Ventures Associate An associate is an … Read more
Last update 28/11/2019 Derecognise a transfer of a financial instrument or not – to quickly grow comfortable and get a gut feeling for derecognising a financial instrument read this page. Small cases with different inputs with a analysing comment on the case provide a fruitful learning ground. Here are some examples regarding transfers of financial … Read more
Last update 05/08/2019 A method of accounting for an investment, whereby the investment is recognised at cost. The investor recognises revenue from the investment only to the extent that the investor is entitled to receive distributions from accumulated surpluses of the investee arising after the date of acquisition. Entitlements due or received in excess of … Read more