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

Change in accounting principles

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Last update 01/12/2019 Change in accounting principles – There is an underlying presumption that an accounting principle, once adopted, should not be changed for similar events and transactions. A change in principle may be caused by new events, changing conditions, or additional information or experience. There are two circumstances when a company is required to … Read more

Deductible temporary tax differences

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Last update 06/08/2019 Temporary differences that will result in amounts that are deductible in determining taxable profit (tax loss) of future periods when the carrying amount of the asset or liability is recovered or settled. Deferred taxes See Convertible debt option reserve to obtain an understanding of the amounts mentioned in the below table. In … Read more

Change in accounting policy?

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Last update 22/12/2019 Change in accounting policy – Oil and natural gas properties, including related pipelines, are depreciated using a unit-of-production method. The cost of producing wells is amortized over proved developed reserves. License acquisition, common facilities and future decommissioning costs are amortized over total proved reserves. The unit-of-production rate for the depreciation of common … Read more

Debt instrument

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Last update 06/08/2019 A debt instrument is a paper or electronic obligation that enables the issuing party to raise funds by promising to repay a lender in accordance with terms of a contract. Types of debt instruments include notes, bonds, debentures, certificates, mortgages, leases or other agreements between a lender and a borrower. These instruments … Read more

De minimis or non-genuine features

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Last update 09/12/2019 De minimis or non-genuine features – A contractual cash flow characteristic does not affect the classification of a financial asset if it could have only a de minimis effect on the contractual cash flows of the financial asset. To make this determination, an entity considers the possible effect of the contractual cash … Read more