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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
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