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Last update 10/08/2019 A contract that is equally unperformed: neither party has fulfilled any of its obligations, or both parties have fulfilled their obligations partially and to an equal extent. The Conceptual Framework provides the following guidance [Conceptual Framework 4.57 – 4.58]: An executory contract establishes a combined right and obligation to exchange economic resources. … Read more
Last update 11/11/2019 Many entities make payments to their customers. In some cases, the consideration paid or payable to a customer represents purchases by the entity of goods or services offered by the customer that satisfy a business need of the entity. In other cases, the consideration paid or payable represents incentives given by the … Read more
Last update 10/08/2019 Those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified: Those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and Those that are … Read more
Last update 30/11/2019 Conceptual Framework for Financial Reporting – Just as an introduction some language thoughts to better understand what we are talking about. Conceptual: consisting of concepts Conceptual Framework for Financial Reporting Concept: an abstract or generic idea generalized from particular instances Conceptual Framework for Financial Reporting Framework: a basic conceptual structure (as of … Read more
Last update 17/10/2019 Equity method is used to account for investments in associates and joint-ventures. Simply put, the equity method is a simplified form of consolidation (IAS 28 27), with one major difference: items are not added line-by-line, but a single asset (investment in associate or joint-venture) is recognised in the statement of financial position … Read more
Last update 31/10/2019 Conceptual framework 2018 measurements is part of the explanations on the revised Conceptual Framework for Financial Reporting (the Conceptual Framework 2018) issued in 2018 by IASB. It describes various measurement bases, the information they provide and factors to consider when selecting a measurement basis. The 2010 Conceptual Framework did not include much … Read more
Last update 10/08/2019 An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. FVOCI election for equity instruments At initial recognition of an equity investment, that is not held for trading or a contingent consideration (recognised by the acquirer in a business combination), … Read more
Last update 17/12/2019 The Conceptual Framework for Financial Reporting 2018 (the ‘Conceptual Framework’) describes the objective of, and the concepts for, general purpose financial reporting. The Conceptual Framework’s purpose is to assist the IASB in developing and revising IFRSs that are based on consistent concepts, to help preparers to develop consistent accounting policies for areas … Read more
Last update 10/08/2019 A parent presents non-controlling interests in its consolidated statement of financial position within equity, separately from the equity of the owners of the parent. A reporting entity attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests. The proportion … Read more
Last update 08/11/2019 Comprehensive understanding IFRS 15 Disclosures provides clear disclosure requirements, which are quite detailed and increase the volume of required disclosures that entities have to include in their interim and annual financial statements. Many of the requirements in IFRS 15 involve information that entities did not previously disclose, all in all the usefulness … Read more