Just another WordPress site
This is a complete almost 80-minute IFRS consolidation lecture that puts you on the solid starting point: The content of this lecture (with links to text versions) Introduction to group accounts / consolidation IFRS 3 Business Combinations – summary of rules IFRS 10 Consolidated Financial Statements – summary of rules Example: Basic consolidation step … Read more
Deferred tax is not a new concept – however, it is the concept quite misunderstood by many. Well, first of all – deferred tax is NOT a tax to be paid. Instead, it is an accrual for tax, working similarly as any other accrual or even a provision. The next confusing thing about the deferred … Read more
What are management-defined performance measures, the new requirement in IFRS 18? The guidance in IFRS 18 related to MPMs is quite extensive, however, in my humble opinion, most “outside-financial statements” measures will not meet the definition of MPM in IFRS 18. As a result, no specific disclosure will be needed. Why? Because, first, you need … Read more
Here the questions raised is how to account for revenue in a transfer of land. Or to put it more formally how to account for revenue recognition in a real estate contract that includes the transfer of land (as per IFRS 15 Revenue from Contracts with Customers) as per the same 2018 IFRS Interpretations Committee Agenda … Read more
Variable number of equity instruments or variable exercise price or IFRS 2 Shares to the value of a fixed amount Shares to the value of of if a variable number of equity instruments to the value of a fixed amount is granted, commonly known as ‘shares to the value of’, then such an arrangement is … Read more
IAS 8 Best summary policies estimates and errors comprises a high level summary of the three items in this standard: Accounting policies, Accounting Estimates Errors 1. Accounting policies Definition: Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements. ↓ ↓ Selection and application … Read more
IAS 36 Other impairment issues – When looking at the step-by-step IAS 36 impairment approach it comes down to the following broadly organised steps: IAS 36 How Impairment test What?? – Determining the scope and structure of the impairment review, explained here, If and when? – Determining if and when a quantitative impairment test is necessary, … Read more
Topics hide IFRS 5 Non-current assets Held for Sale and Discontinued Operations at a glance – here it is the ultimate summary: IFRS 5 Non-current assets Held for Sale and Discontinued Operations IFRS 5 Non-current assets Held for Sale and Discontinued Operations at a glance – here it is the ultimate summary: Source: https://www.bdo.global/en-gb/services/audit-assurance/ifrs/ifrs-at-a-glance … Read more
Topics hide the Expected Credit Losses model Decision tree ECL Model (1) Simplified approach ECL for trade receivables, contract assets and lease receivables (2) Purchased or originated credit-impaired assets (3) + (5) Option – practical expedient low credit risk financial assets (4) Assessing a significant increase in credit risk (6) Recognise lifetime ECL Portfolio or … Read more
Topics hide Scope IFRS 7 Financial instruments Disclosures High level summary Easy understand IFRS 7 Disclosures financial instruments IFRS 7 Financial instruments Disclosures High level summary IFRS 7 Financial instruments Disclosures High level summary IFRS 7 Financial instruments Disclosures High level summary IFRS 7 Financial instruments Disclosures High level summary IFRS 7 Financial instruments Disclosures … Read more