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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
Last update 10/08/2019 Equity: The residual interest in the assets of the entity after deducting all its liabilities. Equity claim: A claim on the residual interest in the assets of the entity after deducting all its liabilities. Equity interests: For the purposes of IFRS 3, is used broadly to mean ownership interests of investor-owned entities … Read more
Last update 27/11/2019 Definition Components of a nominal amount Components of a nominal amount are specified part(s) of the amount of an item. This could be a proportion of an entire item (such as, EUR 60 million of a fixed rate loan of EUR 100 million) or a layer component (for example, the bottom EUR … Read more
Last update 10/08/2019 Entity-specific value or value in use is the present value of the cash flows an entity expects to arise from the continuing use of an asset and from its disposal at the end of its useful life or expects to incur when settling a liability. This is not a concept in use … Read more
Last update 22/12/2019 Components of a company’s pension liability – A company’s defined-benefit pension plans have three basic components: accrued-benefit obligations, or the future liabilities created by employees’ service; plan assets, used to pay pension benefits; and unamortized actuarial gains and losses. Setting aside unamortized actuarial gains and losses, when plan assets are less than … Read more
Last update 10/08/2019 A qualitative characteristic that makes financial information more useful if the information both is relevant and provides a faithful representation. Comparability, verifiability, timeliness and understand-ability are qualitative characteristics that enhance the usefulness of information that both is relevant and provides a faithful representation of what it purports to represent. The enhancing qualitative … Read more
Last update 13/11/2019 Complete detection of all IFRS 3 intangibles explains it all, because detecting intangible assets can be a complex and challenging matter. Strategies to detect identifiable intangible assets vary depending on the facts and circumstances of the business combination and usually require a full review of the transaction. It is important to understand … Read more
Last update 04/01/2020 Embedded derivatives are part of a financial instrument that also includes a non-derivative host contract. The embedded derivative requires that some portion of the contract’s cash flows be modified in relation to changes in a variable, such as an interest rate, commodity price, credit rating, or foreign exchange rate. If a derivative … Read more