IFRS 3 Measurement period

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Last update 16/12/2019 IFRS 3 Definition: Measurement period – the period after the acquisition date during which the acquirer may adjust the provisional amounts recognized for a business combination, providing the acquirer with a reasonable time to obtain the information necessary to apply the requirements of IFRS 3. The measurement period shall not exceed one … Read more

Creating a new contract or not?

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Last update 05/12/2019 Creating a new contract or not – What is a modification of a contract and what is a new contract? The way chosen in IFRS 15 Revenue from Contracts with Customers is that the general rule is that a modification is a continuation of an existing contract with some changes. To account … Read more

Identified asset

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Last update 24/11/2019 Identified asset, a term from IFRS 16 Leases. Let’s see what it is all about…. An asset is identifiable if it either: Is separable, i.e., is capable of being separated or divided from the entity and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset or liability, … Read more

Costs to issue or buy back issued shares

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Last update 07/11/2019 The accounting rule: Costs to issue or buy back issued shares by the issuing entity are accounted for as a deduction from equity, net of any related income tax benefit (the issue or buy back not being part of a business combination).  An entity typically incurs various costs in issuing or acquiring its … Read more

Hold to collect and sell

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Last update 28/12/2019 Hold to collect and sell – this is part of the classification of financial assets. Classification determines how financial assets and financial liabilities are accounted for in financial statements and, in particular, how they are measured on an ongoing basis. IFRS 9 introduces a logical approach for the classification of financial assets, … Read more

Costs of issuing and reacquiring equity instruments

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Last update 16/09/2019 The accounting rule: Costs of issuing or reacquiring equity instruments (other than in a business combination) are accounted for as a deduction from equity, net of any related income tax benefit. Costs of issuing and reacquiring equity instruments An entity typically incurs various costs in issuing or acquiring its own equity instruments. … Read more

Hold to collect

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Last update 27/12/2019 Hold to collect is a business model defined under IFRS 9. This is part of the classification of financial assets. The objective of the ‘hold to collect’ business model is to hold financial assets to collect their contractual cash flows, rather than with a view to selling the assets to generate cash … Read more

Cost of self-constructed assets

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Last update 25/11/2019 IAS 16 22 sets out the core principle for determining the cost of self-constructed assets. Here is a very practical example to quickly understand and solve any IFRS issues. The cost of a self-constructed asset is determined using the same principles as applicable to an purchased asset. If an entity makes similar … Read more

Highly probable

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Last update 09/09/2019 IFRS Definition –  Highly probable: Significantly more likely than probable. IFRS Definition –  Probable: More likely than not. Other probability qualifications used in IFRS Standards are: Unlikely, Highly unlikely, Highly likely, Likely, More likely than not, Most likely, More likely and Virtually certain. Looking at the statistical data below, highly probable would … Read more

Correct presentation of revenue in IFRS 15

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Last update 07/11/2019 Correct presentation of revenue in IFRS 15 provides explicit presentation requirements, which are quite detailed and increase the volume of required disclosures that entities have to include in their interim and annual financial statements. Many of the requirements in IFRS 15 involve information that entities did not previously disclose, all in all … Read more