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Last update 20/11/2019 Adjusted market pricing relates to the fair value pricing of assets held by investors in an investment portfolio. Such assets are debt instruments and equity instruments, with both instruments either being traded in a market/stock/bonds exchange or in a private market. In comparison to assets, observable active markets for liabilities and equities … Read more
Last update 27/11/2019 Accounting for macro hedging – Financial institutions, particularly retail banks, have as a core business, the collection of funds by depositors that are subsequently invested as loans to customers. This typically includes instruments such as current and savings accounts, deposits and borrowings, loans and mortgages that are usually accounted for at amortised … Read more
Last update 08/12/2019 Actuarial assumptions Actuarial terms Estimates of future experience with respect to rates of mortality, disability, turnover, retirement, rate or rates of investment income, and salary increases. Decrement assumptions (rates of mortality, disability, turnover and retirement) are generally based on past experience, often modified for projected changes in conditions. Economic assumptions (salary increases … Read more
Last update 22/12/2019 What is a levy? Accounting for government levies A levy is defined as an outflow of resources (embodying economic benefits) that is imposed by governments (including government agencies and similar bodies whether local, national or international) on entities in accordance with legislation (i.e., laws and/or regulations)1. When do I record a liability … Read more
Last update 31/07/2019 IFRS 13 Definition: A market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. Why is market data important? Many current and emerging regulatory or reporting regimes use the ideas of fair value or market-consistent value of assets … Read more
Last update 28/10/2019 Accounting for Customer Loyalty Programs in IFRS 15 is about customer options for additional goods or services and includes cases that should facilitate an easier understanding of this subject. Accounting for Customer Loyalty Programs Topics hide Customer options for additional goods or services Examples / Cases Case 1: an option for additional … Read more
Last update 08/12/2019 Acquisition-related costs are costs the acquirer incurs to effect a business combination. Those costs include finder’s fees; advisory, legal, accounting, valuation and other professional or consulting fees; general administrative costs, including the costs of maintaining an internal acquisitions department; and costs of registering and issuing debt and equity securities. The acquirer shall … Read more
Last update 27/10/2019 Accounting by investment entities is about the accounting requirements in IFRS 10 for investment entities that are limited to an exception from consolidation of investments in certain subsidiaries. The exception also impacts the separate financial statements of an investment entity (if these are prepared). The table summarises the key requirements: Accounting by … Read more
Last update 31/07/2019 IFRS 3 Definition: The date on which the acquirer obtains control of the acquiree. The second step in applying the acquisition method, subsequent to identifying the acquirer, is to determine the acquisition date. Simply put, the acquisition date is the date on which the acquirer obtains control of the acquiree. In general, … Read more
Last update 29/09/2019 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 providing the theory and history of … Read more