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Last update 17/12/2019 Contract modification and derecognition – A contract that qualifies as an insurance contract remains so until all rights and obligations are extinguished (i.e., discharged, cancelled or expired) unless the contract is derecognised because of a contract modification [IFRS 17 B25]. IFRS 4 contained no guidance on when or whether a modification of … Read more
Last update 16/08/2019 For IFRS financial reporting purposes financial liabilities exclude trade and other payables and provisions. Financial liability: any liability that is: a contractual obligation: to deliver cash or another financial asset to another entity; or to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; … Read more
Last update 25/11/2019 Contract enforceability and termination clauses is about those troubles, get your money as entitled or end a contract before you lose too much money. An entity has to determine the duration of the contract (i.e., the stated contractual term or a shorter period) before applying certain aspects of the revenue model (e.g., … Read more
Last update 16/08/2019 IFRS 9 Definition: A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial asset is any asset that is: Cash; An equity instrument of another entity; A contractual right: to receive cash or another financial … Read more
Last update 16/09/2019 IFRS 15 Revenue from Contracts with Customers (contents page is here) introduced a single and comprehensive framework which sets out how much revenue is to be recognised, and when. The core principle is that a vendor should recognise revenue to depict the transfer of promised goods or services to customers in an … Read more
Last update 16/11/2019 Financial guarantees IFRS 9 Definition: In general, a financial guarantee is a promise to take responsibility for another company’s financial obligation if that company cannot meet its obligation. The entity assuming this responsibility is called the guarantor. Such a guarantee can be limited or unlimited, making the guarantor liable for only a … Read more
Last update 08/11/2019 IFRS 15 for contract costs1 specifies the accounting treatment for costs an entity incurs to obtain and fulfil a contract to provide goods or services to customers as discussed below. An entity only applies these requirements to costs incurred that relate to a contract with a customer that is within the scope … Read more
Last update 16/11/2019 Financial guarantee contract – IFRS 17 Definition: A contract that requires the issuer to make specified payments, to reimburse the holder for a loss it incurs because a specified debtor fails to make a payment when due in accordance with the original or modified terms of a debt instrument. Further explanation These … Read more
Last update 18/11/2019 Contract assets and contract liabilities relates to a complete explanation of IFRS 15 Revenue from contracts with customers in respect of Engineering & Construction contracts, see Revenue from Engineering & Construction contracts. IAS 11 required entities to record contract assets for unbilled accounts receivable when revenue is recognised but not billed. Contract … Read more
Last update 16/08/2019 The asset is measured at fair value. Changes in fair value are recognised in profit and loss as they arise. Financial assets should be classified as fair value through profit or loss if they do not meet the criteria for fair value through other comprehensive income or amortised cost. Fair value through … Read more