Non-recourse assets

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Last update 09/12/2019 Non-recourse assets – In some cases, a financial asset may have contractual cash flows that are described as principal and interest, but that do not represent the payment of principal and interest. The essential difference between a recourse and non-recourse asset has to do with which assets a lender can claim against … Read more

Does the contract contain a lease 2

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Last update 30/09/2019 Does the customer have the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use? Consider the explanations in the right to obtain economic benefits from use, before answering the question yes or no. You will be going to the next question or … Read more

Non-current asset

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Last update 19/08/2019 IFRS Definition: An asset that does not meet the definition of a current asset. AKA – Fixed assets Or……. Assets An asset is something which has an economic value and held by an organization for benefit in present and future. Assets are broadly classified into two categories based on the time period … Read more

Does a contract include a lease?

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Last update 24/11/2019 Does a contract include a lease? is a game like type of thing, walk through a few pages and you have decided whether a contract includes a lease or not. As from 1 January 2019, the lessee is required to recognise almost all lease contracts on the balance sheet. The distinction between … Read more

Non-controlling interests

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Last update 19/08/2019 Definition IFRS 10 Non-controlling interest or NCI represents equity in a subsidiary not attributable, directly or indirectly, to a parent. AKA: Minority interest More information/explanation: A parent presents non-controlling interests in its consolidated statement of financial position within equity, separately from the equity of the owners of the parent. A reporting entity … Read more

Do the SPPI contractual cash flow characteristics test

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Last update 18/11/2019 Do the SPPI contractual cash flow characteristics test summarises the classification of financial assets. A typical example of an instrument where the contractual cash flows would not meet SPPI would be a debt instrument with an interest rate that is linked to the issuer’s share price. Similarly, a debt instrument with an … Read more

Non-adjusting events after the reporting date

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Last update 19/08/2019 Those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified: Those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and Those that are … Read more

No derecognition

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Last update 06/12/2019 No derecognition – Assets Together with full derecognition, this is the clearest type of transfer (all transfer possibilities, see below derecognition diagram). But keep in mind, 95% of transfers result in full recognition and are simple, the entity that has recorded a financial asset receives cash and removes the asset from its … Read more

Dismantle remove and restore items of PPE

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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

Net realisable value

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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