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Last update 10/12/2019 Breach of Contract – Contracting party’s actual failure or refusal to perform (or a clear indication of its intentions to not perform) its obligations under the contract. A breach could be effected by: repudiation of obligations before the beginning of the contract, repudiation of obligations before its completion, or a conduct that … Read more
Last update 26/11/2019 Allocate the transaction price to the performance obligations considers key implications IFRS 15 Revenue from Contracts with Customers for real estate entities. It provides an overview of the revenue recognition model in IFRS 15 with a focus on entities that: Allocate the transaction price to the performance obligation Own, operate and sell … Read more
Last update 13/12/2019 Bonus certificates are financial instruments. Bonus certificates represent patrimonial rights (wikipedia-link) as defined in the terms and conditions of issue of those bonds. Bonus certificates are participation products that feature full upside participation and a conditional capital protection as long as the underlying asset doesn’t cross a predefined threshold (barrier). In most … Read more
Last update 22/11/2019 Aggregation disaggregation and materiality are cornerstones of financial reporting using IFRS. Here is a summary of the financial reporting items that include (mostly) disclosure requirements that relate to these cornerstones. See also Aggregation for an overview of general financial reporting rules in that respect. Aggregation disaggregation and materiality Fair value measurement Present … Read more
Last update 13/12/2019 Bonds or debentures are financial instruments. A bond is a certificate or evidence of a debt on which the issuing company or governmental body promises to pay the bondholders a specified amount of interest for a specified length of time and to repay the loan on the expiration date. A bond may … Read more
Last update 23/12/2019 Agency relationships in consolidation – An investor with decision making rights has to determine whether it is a principal or an agent. An ‘agent’ is defined as ‘a party primarily engaged to act on behalf and for the benefit of another party or parties (the principal(s)) and therefore does not control the … Read more
Last update 02/08/2019 The table below provides examples of biological assets, agricultural produce, and products that are the result of processing after harvest: Biological assets Agricultural produce Products that are the result of processing after harvest Sheep Wool Yarn, carpet Trees in a timber plantation Felled trees Logs, lumber Dairy cattle Milk Cheese Pigs … Read more
Last update 17/12/2019 Advance payment to purchase Property plant and equipment is an example presented in IFRIC 22 Foreign Currency Transactions and Advance Consideration. Other examples are: Multiple advances and multiple service deliveries, Multiple advances and multiple deliveries of goods and Multiple advances for one delivery of goods. These examples accompany, but are not part … Read more
Last update 09/12/2019 [IFRS 9 Fair value hedge] The adjustment to the amortized cost basis of the hedged item from applying fair value hedge accounting is referred to as a basis adjustment. Basis adjustments are accounted for in the same manner as other components of the amortized cost basis of the hedged item. Explanations: Basis … Read more
Last update 25/11/2019 The adjusted net asset method tangible asset example is used to value a business based on the difference between the fair market value of the business assets and its liabilities. Depending on the particular purpose or circumstances underlying the valuation, this method sometimes uses the replacement or liquidation value of the company assets … Read more