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Last update 22/12/2019 Differences in international financial reporting – In the current stage of social development, all countries can be divided into the two following groups: Countries with the legislation of general judicial development; Differences in international financial reporting Countries with a well-structured legislative framework. Differences in international financial reporting In the first group of … Read more
Last update 18/08/2019 Liabilities (assets) for current tax comprise the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for a period. Current tax for current and prior periods shall, to the extent unpaid, be recognised as a liability. If the amount already paid in respect of current and prior periods exceeds the … Read more
Last update 26/11/2019 In determining when promises are performance obligations the assessment has to be made whether the performance obligations consist of a series of distinct goods and/or services that are substantially the same and have the same pattern of transfer, OR Determining when promises are performance obligations a series of non-distinct goods and/or services … Read more
Last update 31/12/2019 A levy is defined [in IFRIC 21 ] as an outflow of resources (embodying economic benefits) that is imposed by governments (including government agencies and similar bodies whether local, national or international) on entities in accordance with legislation (i.e., laws and/or regulations)1. Included (in scope) Excluded (out of scope) IFRIC 21 … Read more
Last update 25/11/2019 Determining stand-alone selling prices is a logical step in determining the correct pricing of a contract under IFRS 15. To allocate the transaction price on a relative stand-alone selling price basis, an entity must first determine the stand-alone selling price of the distinct good or service underlying each performance obligation. Under the … Read more
Last update 10/12/2019 Legally enforceable contract – A contract, under the broadest possible definition, is a legally enforceable promise. Contracts are classified in many different ways. For example, a contract may be unilateral (a promise by one party to another) or bi- or multilateral (a set of complementary promises made by and between more than … Read more
Last update 24/12/2019 Determining significant increases in credit risk – The transition from recognising 12-month expected credit losses (i.e. Stage 1) to lifetime expected credit losses (i.e. Stage 2) in IFRS 9 Financial Instruments is based on the notion of a significant increase in credit risk over the remaining life of the instrument. The focus … Read more
Last update 06/01/2020 Leases explained along defined terms to obtain a quick overview. An overview is provided here. Definitions from IFRS 16 Leases are: IFRS 16 Leases: A contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration. Lease … Read more
Last update 22/12/2019 Determining annual pension expense – In general terms, pension expense reported in the statement of profit or loss is driven by how much the pension liability increased during the year, net of returns on the plan’s assets. Normally, a pension liability increases as employees earn additional future benefits from an additional year … Read more
Last update 10/12/2019 Land easements or rights of way are rights to use, access or cross another entity’s land for a specified purpose. For example, a land easement might be obtained for the right to construct and operate a pipeline or other assets (e.g., railway line, utility pipes or telecommunication lines) over, under or through … Read more