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Last update 10/12/2019 Interest in other entities – For the purpose of IFRS 12 Disclosure of Interest in Other Entities, an interest in another entity refers to contractual and non-contractual involvement that exposes an entity to variability of returns from the performance of the other entity. An interest in another entity can be evidenced by, … Read more
Last update 29/11/2019 Debt instruments at FVOCI – A debt instrument is classified as subsequently measured at fair value through other comprehensive income (FVOCI) under IFRS 9 if it meets both of the following criteria: Hold to collect and sell business model test: The asset is held within a business model whose objective is achieved … Read more
Last update 18/08/2019 Example accounting policy Intangible assets, other than goodwill, include expenditure on the exploration for and evaluation of oil and natural gas resources, computer software, patents, licences and trademarks and are stated at the amount initially recognized, less accumulated amortization and accumulated impairment losses. Intangible assets acquired separately from a business are carried … Read more
Last update 20/12/2019 Dealer sales vehicle incentives – To apply IFRS 15, original equipment manufacturers (OEMs) will need to change the way they evaluate incentives. Original equipment manufacturers need to use significant judgement when they identify separate performance obligations (i.e., units of account), which may be different from those identified under IAS 18. Original equipment … Read more
Last update 31/08/2019 An intangible asset is an identifiable non-monetary asset without physical substance. Intangible assets can be grouped into three broad categories — rights, relationships and intellectual property: Rights. Leases, distribution agreements, employment contracts, covenants, financing arrangements, supply contracts, licences, certifications, franchises. Relationships. Trained and assembled workforce, customer and distribution relationships. Intellectual property. Patents; copyrights; trademarks; … Read more
Last update 24/12/2019 DCF Calculation Value of the business – This is a simple example to show the workings of a Discounted Cash Flow (DCF) model, which is hopefully also understandable for non-mathematicians. Using cash-flow-based measurement techniques is done using all the following factors: estimates of future cash flows. DCF Calculation Value of the business … Read more
Last update 06/12/2019 Insurance contracts definitions – Here are some of the IFRS 17 Insurance contracts Appendix A definitions. Other not listed here are directly available on IFRS Jargon. Coverage period – The period during which the entity provides coverage for insured events. This period includes the coverage that relates to all premiums within the … Read more
Last update 12/11/2019 Topics hide Introduction References (to familiarise yourself with the subject): What are the inputs to the model? Revenue Revenue growth Turnover/Attrition Terminal value Net margin Inventory write-up Contributory asset charge Charge for trade names Charge for other technology Income tax rate Unit of measurement Partial first year factor Present Value Factor Present … Read more
Last update 17/12/2019 Insurance contracts acquired in the run-off period – An otherwise solvent insurer determines that it wishes to exit from a particular class of insurance contracts, but wishes to continue underwriting in other classes. This could be the result of strategic considerations, lack of profitability in the to be discontinued class, or a … Read more
Last update 01/12/2019 Customer lists – In a Business Combinations, this is a intangible asset and is therefore recognised separately from goodwill, provided that its fair value can be measured reliably. This customer-related intangible asset does not arise from contractual or other legal rights, but meets the definition of an intangible asset because it is … Read more