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Last update 26/11/2019 Determine the transaction price property construction considers key implications IFRS 15 Revenue from Contracts with Customers for real estate entities. It provides an overview of the revenue recognition model in IFRS 15 with a focus on entities that: Own, operate and sell real estate Determine the transaction price property construction Provide property … Read more
Last update 09/12/2019 Key Performance Indicators (KPIs) are the critical (key) indicators of progress toward an intended result. KPIs provides a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most. As Peter Drucker famously said, ‘What gets measured gets done’. Managing with the … Read more
Last update 19/11/2019 Key management personnel is one of the related parties. Related parties are relationships in which one party has the ability to control or significantly influence the economic and operating decisions of another. Transactions with related parties are a common feature of business. Key management personnel (KMP) is defined in IAS 24 Related … Read more
Last update 25/11/2019 IFRS 15 47 provides the requirements to determine the transaction price. The transaction price is based on the amount to which the entity expects to be ‘entitled’. This amount is meant to reflect the amount to which the entity has rights under the present contract (see contract enforce-ability and termination clauses). That … Read more
Last update 05/01/2020 Jointly Sponsored Pension Plans A jointly sponsored pension plan is a defined-benefit plan in which an employer shares risks and rewards in the plan equally with the plan members, who are current employees and retirees. Since there are usually many individual plan members, an organization is typically formed to represent all of … Read more
Last update 13/09/2019 Businesses are created to bring together diverse resources and generate synergies that will be realised in jointly produced cash flows. While businesses typically acquire assets separately, they realise benefits from them jointly. If no synergies were anticipated, there would be no point in bringing resources together in the first place. As a … Read more
Last update 27/12/2019 Joint control starts with the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. In assessing whether an entity has joint control of an arrangement, an entity shall assess first whether all the parties, or … Read more
Last update 27/11/2019 Designating proxy hedges is a direct result from IASB’s IFRS 9 Hedge accounting ambition to align hedge accounting more to/into the risk management activities of a reporting entity. But not on a scholastic, black/white, way. The objective of IFRS 9 Hedge accounting is to represent, in the financial statements, the effect of … Read more
Last update 25/11/2019 Under IFRS 11, ‘Joint Arrangements’, investments in joint arrangements are classified as either joint operations or joint ventures, depending on the contractual rights and obligations that each investor has, rather than the legal structure of the joint arrangement. A reporting entity has assessed the nature of its joint arrangements and determined whether that it has … Read more
Last update 14/11/2019 Derecognition of financial assets has drawn a lot of attention in the Enron scandal. Enron used special purpose entities—limited partnerships or companies created to fulfil a temporary or specific purpose to fund or manage risks associated with specific (financial and/or non-financial) assets. Derecognition of financial assets On October 16, 2001, Enron announced … Read more