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Last update 20/11/2019 Control over CMBS issuer Structured entity is a case on the assessment whether certain stakeholders in a transaction/structure have obtained control over a certain entity in the transaction in line with the requirements of IFRS 10 Consolidated financial statements. Only one stakeholder can be in control! [IFRS 10 B16] Or no stakeholder … Read more
Last update 17/08/2019 Qualitative characteristics that financial information must possess to make it useful to the primary users of general purpose financial reports. They are relevance and faithful representation. Relevance Relevant financial information is capable of making a difference in the decisions made by users. Information may be capable of making a difference in a … Read more
Last update 30/11/2019 Control of an economic resource – This is all about: A present economic resource controlled by the entity as a result of past events. Two very simple examples to start with: Pat Co has purchased a patent for $20,000. The patent gives the company sole use of a particular manufacturing process which … Read more
Last update 06/12/2019 Full derecognition with recognition of new assets or liabilities Full derecognition (transferred off-balance sheet) – with recognition of any new assets or liabilities Assets 95% of transfers resulting in full recognition are simple, the entity that has recorded a financial asset receives cash and removes the asset from its financial position. However, … Read more
Last update 18/11/2019 This is a discussion on IFRS 10 – IFRS 12 Control Joint control Significant influence and the accounting applied. It is added with some other logical IFRS topics: the fair value option and the other investments (no control, no joint control and no significant influence). Topics hide Control Joint control Joint control … Read more
Last update 18/12/2019 Fulfilment cash flows comprise: a current estimate of unbiased and probability-weighted future cash flows expected to arise during the life of the contract; a discount adjustment to reflect the time value of money and financial risks, such as liquidity and currency risks (layers of discounting); an explicit risk adjustment for non-financial risks. … Read more
Last update 26/11/2019 Control in debt restructuring in Structured entity provides a case of obtaining control in a transaction. Following is a case on the assessment whether certain stakeholders in a transaction/structure have obtained control over a certain entity in the transaction in line with the requirements of IFRS 10 Consolidated financial statements. Only one … Read more
Last update 28/12/2019 Free cash flow represents the cash a company generates after cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the non-cash expenses of the income statement and includes spending on equipment and assets as well as … Read more
Last update 20/11/2019 Control by using options explores the rare situation of not having a straightforward majority of the voting rights in an investee and being in control, but a less straightforward control situation through contractual arrangements (put and/or call options) Following is a case on the assessment whether certain stakeholders in a transaction/structure have … Read more
Last update 31/12/2019 Foreign exchange reserve – Gains/losses arising on translating the net assets of overseas operations into CU. IAS 21 The Effects of Changes in Foreign Exchange Rates outlines how to account for foreign currency transactions and operations in financial statements, and also how to translate financial statements into a presentation currency. An entity is required … Read more