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Last update 06/12/2019 Assessing information quality for measurement – The Conceptual Framework provides the foundation for Standards and Accounting Guidelines that: contribute to transparency by enhancing the comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions. strengthen accountability by reducing the information gap between the providers of … Read more
Last update 04/08/2019 An enhancing qualitative characteristic that enables users to identify and understand similarities in, and differences among, items. The Conceptual Framework provides the following guidance [Conceptual Framework 2.24 – 2.29]: Users’ decisions involve choosing between alternatives, for example, selling or holding an investment, or investing in one reporting entity or another. Consequently, information … Read more
Last update 26/11/2019 Assessing de facto control for an operating entity is a case which is important to understand when assessing who is in control in certain cases and under which conditions. Following is a case on the assessment whether certain stakeholders in a transaction/structure have obtained control over a certain entity in the transaction … Read more
Last update 10/12/2019 Commitments are items that are not reported as liabilities as of the balance sheet date. Some of these items are reported in the notes to the financial statements. Examples include non-cancelable (as at balance sheet date) binding contracts to rent space in the future or to purchase items at specified prices. Off-course … Read more
Last update 14/09/2019 In making the collectability assessment, an entity considers the customer’s ability and intention (which includes assessing its credit-worthiness) to pay the amount of consideration when it is due. This assessment is made after taking into account any price concessions that the entity may offer to the customer. (IFRS 15 9(e)) Under the … Read more
Last update 29/12/2019 Commercial mortgage-backed security (CMBS) – An asset-backed security (ABS) on which payments of principal an d interest are made to the holders from revenue generated (backed) by an underlying pool of commercial mortgage loans. The underlying commercial mortgages are pledged to the holders of the securities as collateral for the payment by … Read more
Last update 01/12/2019 Artistic-related intangible assets – In a Business Combinations, these are intangible assets and are therefore recognised separately from goodwill, provided that their fair values can be measured reliably. These artistic-related intangible assets meet the definition of an intangible asset because they arise from contractual or other legal rights. Artistic-related assets acquired in … Read more
Last update 11/12/2019 Combined financial statements: represents the combination of two or more legal entities or businesses that may or may not be part of the same group, but do not by themselves meet the definition of a group under IFRS 10 Consolidated Financial Statements – i.e. a parent and all of its subsidiaries. At … Read more
Last update 15/09/2019 Identifying the customer can be more challenging when there are multiple parties involved in a transaction. The analysis should include understanding the substance of the relationship of all parties involved in the transaction. Arrangements with multiple parties Arrangements with three or more parties, particularly if there are separate contracts with each of … Read more
Last update 06/01/2020 [IFRS 8 Operating segments] The term ‘chief operating decision maker’ identifies a function, not necessarily a manager with a specific title. That function is to allocate resources to and assess the performance of the operating segments of an entity. Often the chief operating decision maker of an entity is its chief executive … Read more