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Last update 19/08/2019 The amount arising from adjusting the gross carrying amount of a financial asset/hedged item to reflect the renegotiated or modified contractual cash flows in fair value hedges. The entity recalculates the gross carrying amount of a financial asset as the present value of the estimated future cash payments or receipts through the … Read more
Last update 03/12/2019 Disclosures in First IFRS Financial statements – A first-time adopter must apply all of the presentation and disclosure requirements in IFRSs. IFRS Reference: [IFRS 1, paras 20, 23 – 27A, 29 – 31B] The first-time adopter must also explain how the transition from previous GAAP to IFRSs affected its reported financial position, … Read more
Last update 07/01/2020 Measurement uncertainty – Uncertainty that arises when the result of applying a measurement basis is imprecise and can be determined only with a range. Measurement uncertainty arises when a measure cannot be determined directly by observing prices in an active market and must instead be estimated. The level of measurement uncertainty associated … Read more
Last update 03/12/2019 Disclosures immaterial associates and joint ventures – An entity provides the disclosures separately for individually immaterial associates and individually immaterial joint ventures – they are not combined. [IFRS 12 21 (c) and IFRS 12 B16] Based on IFRS 12 21, IFRS 12 B16, the disclosures are made like in this example from … Read more
Last update 19/08/2019 An identified feature of an item being measured (for example, historical cost, fair value or fulfilment value). The result of measuring an asset, a liability or equity, or an item of income or expense, on a specified measurement basis. The process of quantifying, in monetary terms, information about an entity’s assets, liabilities, … Read more
Last update 08/12/2019 Disclosures Hedges Financial position – Performance on the financial position and performance IFRS 7 sets out a specific requirement to disclose the effect hedge accounting has on the entity’s financial position and the performance. All disclosures are required in a tabular format and by type of risk. Disclosures Hedges Financial position Instead … Read more
Last update 06/01/2020 Matrix form of organisation – a matrix organizational structure is a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have dual reporting relationships – generally to both a functional manager and a product manager. Example … Read more
Last update 28/11/2019 Disclosures Future cash flows – The amount, timing and uncertainty of future cash flows surrounding hedging arrangements and financial instruments at least since the financial meltdown in 2008 caused a significant increase of disclosures of which this is (partly) one. Further to the risk management / hedging strategy high level disclosure, entities … Read more
Last update 19/08/2019 Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. In other words, materiality is an entity-specific aspect of relevance … Read more
Last update 04/12/2019 Disclosure when information is seriously prejudicial – Unfortunately disputes may arise between an entity and a third party, employee, manager, director and these disputes may result in legal action being entered into between the parties. The issue giving rise to the provision (or contingent liability) might not have reached the legal stage, … Read more