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Last update 14/11/2019 Cash-flow-based measurement techniques are widely used in measurement of fair values by valuation experts. Fair value is many times determined indirectly using measurement techniques, for example, cash-flow-based measurement techniques, reflecting all the following factors: estimates of future cash flows. Cash-flow-based measurement techniques possible variations in the estimated amount or timing of future … Read more
Last update 17/11/2019 Customer relationships Distributor Method is a valuation model to determine the value of the existing customer relationships portfolio in a business combination, in order to recognise it as an intangible assets other than goodwill. Customer relationships Distributor Method The Distributor Method (DM) is not as commonly used as the Multi-period excess earnings … Read more
Last update 23/12/2019 IAS 1 Presentation of financial statements paragraph 32 prohibits the offset of assets and liabilities, and income and expense, unless this is specifically required or permitted by another IFRS. IAS 7 13 – 17 sets out requirements for, and examples of, individual cash inflows and outflows that are to be presented separately … Read more
Last update 06/08/2019 An entity shall classify an asset as a current asset when: It expects to realise the asset, or intends to sell or consume it, in its normal operating cycle; It holds the asset primarily for the purpose of trading it; It expects to realise the asset within twelve months after the reporting … Read more
Last update 22/12/2019 Cash flows identification Only Principal and interest – Cash flows solely payments of principal and interest on the principal amount The following examples illustrate contractual cash flows that are solely payments of principal and interest on the principal amount outstanding. For the context within IFRS 9: Financial Instruments, reference is made to … Read more
Last update 06/08/2019 The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Currency risk (or foreign exchange risk) arises on financial instruments that are denominated in a foreign currency, ie in a currency other than the functional currency in which they … Read more
Last update 22/12/2019 Cash flows identification Not-Only Principal and interest – The following examples illustrate contractual cash flows that are not solely payments of principal and interest on the principal amount outstanding. For the context within IFRS 9: Financial Instruments, reference is made to IFRS 9 The Solely Payments of Principal and Interest Test . … Read more
Last update 19/12/2019 What are cryptocurrencies? – Cryptocurrency Here is a definition from Techopedia Cryptocurrency is a type of digital currency that is based on cryptography. Cryptocurrency uses cryptography for security, making it difficult to counterfeit. Money has been used for centuries to facilitate the trade of goods and services. The form of money has … Read more
Last update 22/12/2019 Cash flows for income tax and sales tax – IAS 7 includes some specific standards for the treatment of cash flows in the Statement of cash flows for income tax and sales tax (and other taxes). Topics hide (i) Income taxes (ii) Sales taxes Direct method Cash flows for income tax and … Read more
Last update 25/11/2019 Credit-impaired financial asset A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired include observable data about the following events: the significant financial difficulty of the issuer or the borrower; Credit-impaired financial … Read more