Changes in significant accounting policies

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Last update 11/12/2019 Topics hide Changes in significant accounting policies Related posts: Changes in significant accounting policies Notes to the consolidated financial statements1 The basis of preparation comprises the notes to the financial statement relating to: IAS 8 28 5. Changes in significant accounting policies2 The Group has initially applied IFRS 15 (see A) and … Read more

Derivative

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Last update 17/08/2019 IFRS 9 Definition: A financial instrument or other contract within the scope of IFRS 9 with all three of the following characteristics. its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other … Read more

Changes in liquidity and risk of cash equivalents

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Last update 23/12/2019 Changes in liquidity and risk of cash equivalents – Cash equivalents are short-term, highly liquid investments with a maturity date that was 3 months or less at the time of purchase. In other words, there is very little risk of collecting the full amount being reported. So if a corporate bond matures … Read more

Defined Contribution Pension plans

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Last update 13/12/2019 IAS 26: Defined contribution pension plans are post-employment benefit plans under which an entity pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service … Read more

Changes in contractual provisions

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Last update 01/12/2019 Changes in contractual provisions – How do you account for contractual provisions in a financial instruments contract that change the timing or amount of contractual cash flows? Contractual cash flows of some financial assets may change over their lives. For example, an asset may have a floating interest rate. Also, in many … Read more

Deferred tax liabilities

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Last update 07/08/2019 A deferred tax liability shall be recognised when there is a taxable temporary difference between the tax base of an asset or liability and its corresponding carrying amount in the statement of financial position. This arises when the carrying amount of an asset exceeds its tax base. Consequently, the future recovery of … Read more

Changes in contracted transaction price under IFRS 15

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Last update 26/11/2019 Changes in contracted transaction price under IFRS 15 can occur for various reasons. The standard requires entities to determine the transaction price at contract inception. However, there could be changes to the transaction price after contract inception. For example, when a contract includes variable consideration, entities need to update their estimate of … Read more

Deferred tax assets

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Last update 06/01/2020 IAS 12 Definition of deferred tax assets: The amounts of income taxes recoverable in future periods in respect of: Deductible temporary differences; The carry-forward of unused tax losses; and The carry-forward of unused tax credits. There are some key characteristics of deferred tax assets to consider. Deferred tax assets are only recognised … Read more

Change in the fair value of a bond

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Last update 04/12/2019 Change in the fair value of a bond – The following example illustrates the calculation that an entity might perform in accordance with the application guidance in IFRS 9 B5.7.18. The case: On 1 January 20X1 an entity issues a 10-year bond with a par value of CU150,0001 and an annual fixed … Read more

Deemed cost

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Last update 07/08/2019 An amount used as a surrogate for cost or depreciated cost at a given date. Subsequent depreciation or amortisation assumes that the entity had initially recognised the asset or liability at the given date and that its cost was equal to the deemed cost. To put it short – the introduction of deemed cost is … Read more