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Last update 19/12/2019 Fixed fee service contract – IFRS 15 A service provider might enter into fixed fee service contracts. Under these contracts, the customer pays a fixed fee to receive certain services over a fixed period of time when needed. Examples are maintenance contracts under which the service provider is obliged to repair specified … Read more
Last update 17/12/2019 Contractual service margin – The fourth element of the building blocks in the general model is the contractual service margin (the CSM). This is a component of the asset or liability for the group of insurance contracts that represents the unearned profit the entity will recognise as it provides services in the … Read more
Last update 17/08/2019 The first annual financial statements in which an entity adopts International Financial Reporting Standards (IFRSs), by an explicit and unreserved statement of compliance with IFRSs. Background IFRS 1 sets out detailed rules that entities must follow when adopting IFRS for the first time. The standard also sets out a number of exemptions that may be … Read more
Last update 25/11/2019 Contractual restrictions in license arrangements are of importance in accounting for license arrangements, many media outlets need content, historically IP rights are organised for each country. Still useful information has to be included in IFRS Financial Statements. Many licenses within the entertainment and media industry (E&M industry) include contractual provisions that restrict … Read more
Last update 17/08/2019 IFRS Definition (so different from underwriting and other finance terms) An agreement with an unrelated party, binding on both parties and usually legally enforceable, that: specifies all significant terms, including the price and timing of the transactions, and includes a disincentive for non-performance that is sufficiently large to make performance highly probable. … Read more
Last update 12/12/2019 This Contractual cash flows SPPI? test is part of the decision model for the classification and measurement of financial assets, that started in the IFRS 9 Framework for financial assets. But you can also read it without doing the test …. off course? Ok so the financial instrument to classify and measure … Read more
Last update 20/11/2019 Definition relating to hedge accounting A firm commitment is a binding agreement for the exchange of a specified quantity of resources at a specified price on a specified future date or dates. An agreement with an unrelated party, binding on both parties and usually legally enforceable, with the following characteristics: The agreement specifies all … Read more
Last update 01/12/2019 Contract-based intangible assets – In a Business Combinations, contract-based intangible assets –by definition– are intangible assets and are therefore recognised separately from goodwill, provided that their fair values can be measured reliably. These intangible assets meet the definition of an intangible asset because they again –by definition– arise from contractual or other … Read more
Last update 16/08/2019 Financing activities Definition: Activities that result in changes in the size and composition of the contributed capital and borrowings of the entity. Cash receipts and cash payments relating to equity and debt related instruments: cash receipts of payments from owners on shares issued and additional paid-in capital, cash payments to owners in … Read more
Last update 24/12/2019 Contract with a ship owner is an example of not a lease of a ship and see below for the opposite a lease of a ship, the difference will give you a lesson!!!! The case: Contract with a ship owner Customer enters into a contract with a ship owner (Supplier) for the … Read more