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Last update 16/09/2019 As long as discrete information is reviewed by the Chief Operating Decision Maker (CODM) a R&D function can be an operating segment. Typically, an entity’s research and development (R&D) function is a vertically integrated operation (see Operating segments – Vertically integrated operation), in which the R&D activities serve as an integral component … Read more
Last update 31/12/2019 Convertible debt option reserve – A convertible instrument is dealt with by an issuer as having two ‘components’, being a liability host contract plus a separate conversion feature which may or may not qualify for classification as an equity instrument. When the conversion feature qualifies as an equity instrument it is recorded … Read more
Last update 16/09/2019 A discontinued operation can meet the definition of an operating segment if: it continues to engage in business activities; Can a discontinued operation be an operating segment? the operating results are regularly reviewed by the CODM; and Can a discontinued operation be an operating segment? discrete financial information is available to facilitate … Read more
Last update 10/11/2019 Control of an investee starts with a definition: An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. (IFRS 10 6) CONTROL Power over the investee Control … Read more
Last update 05/12/2019 Calculations IFRS 16 Leases is a case regarding fixed lease payments depending on an index and rent-free period. This case is rather simple, fixed payments depending on an index and rent-free period. Here are only included the journal entries to be made at the inception of the lease contract. This contract comprises … Read more
Last update 05/08/2019 Future economic benefits or service potential that has been contributed to the entity by parties external to the entity, other than those that result in liabilities of the entity, that establish a financial interest in the net assets/equity of the entity, which: Conveys entitlement both to distributions of future economic benefits or … Read more
Last update 22/12/2019 Calculating the value of an acquisition – This is a detailed example of calculating the fair value of an acquisition, using a logical step by step approach and realistic assumptions and determinations based on transaction and market data. Identifying and valuing intangible asset(s) is a broad endeavor and requires careful consideration of; … Read more
Last update 09/12/2019 Contractually linked instruments – IFRS 9 provides specific guidance for circumstances in which an entity prioritises payments to the holders of multiple contractually linked instruments that create concentrations of credit risk – i.e. tranches. The right to payments on more junior tranches depends on the issuer generating sufficient cash flows to pay … Read more
Last update 12/12/2019 This Business model hold to collect and sell test is part of the decision model for the classification and measurement of financial assets, that started in the IFRS 9 Framework for financial assets. But you can also read it without doing the test …. off course? An entity’s business model for managing … Read more
Last update 07/01/2020 Contract assets are defined as an entity’s right to consideration in exchange for goods or services (i.e. conditional) that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity’s future performance). An entity shall assess a contract asset … Read more