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Last update 29/11/2019 Control and continuing involvement – Under IFRS 9, control is different from the notion of control in IAS 27 – the power to govern so as to obtain benefits. The notion in IAS 27 focuses on the powers of the entity (transferor) and implies an ability to manage the asset actively. Control … Read more
Last update 17/08/2019 Definition relating to hedge accounting A forecast transaction is an uncommitted but anticipated future transaction. A forecasted transaction is essentially a future transaction that is probable and does not meet the definition of a firm commitment. Forecasted transactions can be contractually established or probable because of an entity’s past or expected business practices. … Read more
Last update 27/11/2019 Contractually specified risk components – Under IFRS 9, risk components can be designated for non-financial hedged items, provided the component is separately identifiable and the changes in fair value or cash flows of the item attributable to the risk component are reliably measurable. This requirement could be met where the risk component … Read more
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