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Last update 05/01/2020 Highest and best use is the use of a non-financial asset by market participants that would maximise the value of the asset or the group of assets and liabilities (eg a business) within which the asset would be used. Here is the way real estate manager use this definition, which should be … Read more
Last update 22/12/2019 Corporate taxes – also called income taxes, but than for corporates. Here we go………… Just a reminder …… Two things in life are certain: …… DEATH……. and ……..TAXES Topics hide What is it about? Current tax – Recognition and measurement Deferred tax – Recognition and measurement Deferred tax assets Deferred tax liabilities Corporate … Read more
Last update 16/05/2019 This is an IAS 39 definition, under IFRS 9 replaced by Investments to ‘hold to collect’. Non-derivative financial assets with fixed or determinable payments and fixed maturity that an entity has the positive intention and ability to hold to maturity other than: Those that the entity upon initial recognition designates as at … Read more
Last update 01/10/2019 This site uses cookies – small text files that are placed on your machine to help the site provide a better user experience. In general, cookies are used to retain user preferences, store information for things like shopping carts, and provide anonymised tracking data to third party applications like Google Analytics. As … Read more
Last update 17/08/2019 Held-to-maturity financial assets have passed the SPPI test (solely payment of principal and interest) and the business model test (Held to collect). Held-to-maturity financial assets are measured at amortized cost, using the effective interest method, less any impairment. IFRS Definition- Amortised cost: The amount at which the financial asset or financial liability … Read more
Last update 26/11/2019 Convertible notes Basic requirements is a introduction of an important financing arrangement for high tech start ups all over the world. Convertible notes are financial instruments that fall within the scope of IAS 32 Financial Instruments: Presentation and IFRS 9 Financial Instruments. IAS 32 contains the definitions of financial liabilities, financial assets … Read more
Last update 17/08/2019 A financial asset or financial liability that: is acquired or incurred principally for the purpose of selling or repurchasing it in the near term; on initial recognition is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or is … Read more
Last update 26/11/2019 Convertible note with embedded derivative The numbers provides the numbers to the case and the journal entries and calculations. In practice, many conversion features in convertible notes fail equity classification, which means that the conversion feature is a financial liability. Convertible note with embedded derivative The numbers The reason that many conversion … Read more
Last update 11/12/2019 Hedge accounting – What is this all about? If investors purchase a security that comprises a high level of risk, they may accompany the purchase with an opposing item (usually a derivative, such as an option or future contract) referred to as a hedge. This hedge experiences gains in value when the … Read more
Last update 26/11/2019 Convertible note with embedded derivative Basics provides an introduction to this accounting subject, completed in the calculation example provided here. In practice, many conversion features in convertible notes fail equity classification, which means that the conversion feature is a financial liability. The reason that many conversion features fail equity classification is that … Read more