Contributions from owners

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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

Calculating the value of an acquisition

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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

Contractually linked instruments

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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

Business model hold to collect and sell

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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

Contract asset

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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

Business model hold to collect

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Last update 12/12/2019 This Business model hold to collect 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? Ok so the financial instrument to classify and … Read more

Continuous assessment of control

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Last update 20/11/2019 Continuous assessment of control is part of documenting your consolidation routines. IFRS 10 clarifies that control over another entity is reassessed if facts and circumstances indicate that there are changes to one or more of the three elements control discussed in the definition of Control of an investee. The principle of continuous … Read more

Borrowing costs

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Last update 02/12/2019 IAS 23 Borrowing Costs requires that borrowing costs directly attributable to the acquisition, construction or production of a ‘qualifying asset’ (one that necessarily takes a substantial period of time to get ready for its intended use or sale) are included in the cost of the asset. Other borrowing costs are recognised as an expense. … Read more

Continuing involvement

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Last update 09/12/2019 The continuing involvement approach applies if the entity has neither transferred nor retained substantially all the risks and rewards of ownership and control has not passed to the transferee. Under the continuing involvement approach, the entity continues to recognise part of the asset. That part represents the extent of its continuing exposure … Read more

Blogs by IFRS

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Last update 27/12/2019 Blogs by IFRS tells it all…. There are a lot of websites and more traditional outlets providing information on International Financial Reporting Standards (IFRS). The actual standards issued by the International Accounting Standards Board (IASB), publications from audit firms, worldwide and country-by-country, providing implementation and change services. Books from (educational) book publishers … Read more