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Last update 25/11/2019 The adjusted net asset method intangible assets 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
Last update 29/12/2019 Asset-backed securities (ABSs) are structured finance products backed by pools of assets and are created through a securitisation process. The risks in asset-backed securities, such as credit risk, prepayment risk, market risks, operational risk, and legal risks, are directly connected with the asset pool and the structuring of the securities. Securitisation is … Read more
Last update 21/12/2019 The adjusted net asset method 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 less the … Read more
Last update 04/01/2020 IAS 19 Definition: Asset ceiling – The asset ceiling is the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the defined benefit plan. Net defined benefit liability (asset) – The net defined benefit liability (asset) is the deficit or … Read more
Last update 02/11/2019 Entities often acquire non-current assets exclusively with a view to disposal/sale (or acquisitions exclusively with a view to disposal). Such a non-current asset will be classified as held-for-sale at the date of the acquisition only if it is anticipated that it will be sold within the one-year period, and it is highly … Read more
Last update 18/11/2019 IFRS 9 Definition of amortised cost: The amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted … Read more
Last update 22/12/2019 Acquisition of investment properties – When should a purchase of investment property (or properties) be accounted for as a business combination, and when as a simple asset purchase? This is an important issue because the IFRS accounting requirements for a business combination are very different from asset purchases. Acquisition of investment properties … Read more
Last update 06/12/2019 Agriculture-related definitions IAS 41 Definition Agricultural activity: The management by an entity of the biological transformation and harvest of biological assets for: Sale; Distribution at no charge or for a nominal charge; or Conversion into agricultural produce or into additional biological assets for sale or for distribution at no charge or for … Read more
Last update 17/12/2019 Acquisition of insurance contracts – Insurance contracts may be acquired in a transfer (often referred to as a portfolio transfer) or in a business combination, as defined in IFRS 3 Business Combinations. In summary, insurance contracts acquired in a transfer or a business combination are classified and measured in the same way … Read more
Last update 02/08/2019 IAS 41 Definition: The management by an entity of the biological transformation and harvest of biological assets for: Sale; Distribution at no charge or for a nominal charge; or Conversion into agricultural produce or into additional biological assets for sale or for distribution at no charge or for a nominal charge. Agricultural … Read more