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Last update 06/12/2019 It is not really necessary to define financial statements, but because IFRS is the frame within which IFRS statements are prepared and because there are quite a few different definitions within IFRS relating to and specifying types of financial statements here a those definitions and some other sorted remarks and explanations. Financial … Read more
Last update 07/11/2019 Contract modifications and variable consideration are discussed on this page. 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 … Read more
Last update 16/08/2019 A financial liability ar fair value through profit or loss meets one of the following conditions: it meets the definition of held for trading. upon initial recognition it is designated by the entity as at fair value through profit or loss in accordance with IFRS 9 4.2.2 or IFRS 9 4.3.5. it … Read more
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