Leases

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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

Determining annual pension expense

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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

Land easements

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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

Determine the transaction price property construction

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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

Key performance indicator

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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

Key management personnel

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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

Determine the transaction price

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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

Jointly Sponsored Pension Plans

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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

Determination of separable assets

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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

Joint control

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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