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Last update 17/12/2019 Disclosure for Insurance contracts – The disclosure requirements in IFRS 17 aim to provide users of the financial statements with a basis to assess the effect that contracts within the scope of IFRS 17 have on an entity’s financial position, financial performance and cash flows. Disclosure for Insurance contracts Disclosure for Insurance … Read more
Last update 18/08/2019 Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market other than: those at fair value through profit or loss; those designated as available-for-sale; and those which the holder may not recover substantially all of its initial investment. Loans and receivables shall be measured upon initial … Read more
Last update 27/11/2019 Disclosure financial instruments tries to address a large part of the significant disclosure requirements included in IFRS 7 Financial Instruments: Disclosure. IFRS 7 requires certain disclosures to be presented by category of an instrument based on the IFRS 9 recognition and measurement categories of financial instruments (previously the IAS 39 measurement categories). … Read more
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