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Last update 14/09/2019 An arrangement is not accounted for using the five contract identification criteria until all of the criteria are met. Management will need to reassess the arrangement at each reporting period to determine if the criteria are met. Arrangements where the identification criteria are not met If the criteria for contract identification are … Read more
Last update 23/08/2019 An adjustment of the carrying amount of an asset or a liability, or the amount of the periodic consumption of an asset, that results from the assessment of the present status of, and expected future benefits and obligations associated with, assets and liabilities. Changes in accounting estimates result from new information or … Read more
Last update 26/11/2019 What happens with arrangements that do not meet the definition of a contract under IFRS 15. How are these accounted for? What IFRSs are used in such a case? If an arrangement does not meet the criteria to be considered a contract under the standard, it must be accounted for as stipulated … Read more
Last update 03/08/2019 A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. This definition is of importance in IAS 36 Impairment of assets: The recoverable amount is calculated at the individual asset level. However, … Read more
Last update 27/12/2019 Arrangements partially in IFRS 15 is about that difficult situation of a mixed contract, parts are in IFRS 15 parts are outside IFRS 15. IFRS 15 provides accounting requirements for all revenue arising from contracts with customers. Arrangements partially in IFRS 15 They affect all entities that enter into contracts to provide … Read more
Last update 04/01/2020 Cash pooling arrangements – Cash pooling enables corporate groups to minimise expenditure incurred in connection with banking facilities through economies of scale. Under a cash pooling arrangement, entities within a corporate group regularly transfer their surplus cash to a single bank account (the “master account“) and, in return, may draw on the … Read more
Last update 18/11/2019 Argentinas sovereign debt overhaul intentions – Read the papers…… Argentinas sovereign debt overhaul intentions July – August 2019 – Argentina’s assets tumbled in the wake of President Mauricio Macri suffering an unexpected bruising primary election loss this month at the hands of populist-leaning Peronist Alberto Fernandez, with the central bank forced to … Read more
Last update 03/08/2019 Inflows and outflows of cash and cash equivalents. Also called payments of cash and receipts of cash or cash payments and cash receipts. Cash payments (cash outflows) are among others payments to trade creditors, employees (net salary), governments (corporate tax, social securities, VAT or sales tax and/or labor tax withholdings), owners (dividends … Read more
Last update 27/11/2019 Applying the fair value hierarchy provides explanations on how to use and disclose the fair value hierarchy. Fair value measurements (based on inputs to the calculation models used) are categorized in their entirety based on the lowest level input that is significant to the entire fair value measurement. This is summarized in … Read more
Last update 31/12/2019 Cash flow hedge reserve – Hedge accounting can bring a number of advantages over traditional accounting methods. The core benefit is that by addressing the timings mismatch associated with standard derivative accounting, hedge accounting removes temporary volatility from the P&L. As a result, the financial statements will better reflect the company’s true … Read more