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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
Last update 02/12/2019 Accounting treatment acquisition of a business or assets – An entity has to determine whether a transaction or other event is a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the assets acquired are not a business, the reporting entity shall account for the transaction … Read more
Last update 31/07/2019 The adding together of individual items that share characteristics and are classified together. Materiality and aggregation An entity shall present separately each material class of similar items. An entity shall present separately items of a dissimilar nature or function unless they are immaterial. [IAS 1 29] Financial statements result from processing large … Read more
Last update 26/11/2019 Accounting policy choices impairment of financial assets describes the impairment models available for trade receivables and contract assets with or without a significant financing component and lease receivables. Topics hide The impairment decisions What is a significant financing component? Accounting policy choices impairment of financial assets Other definitions: Trade receivables Contract assets … Read more
Last update 31/07/2019 A party that is primarily engaged to act on behalf of, and for the benefit of, another party (the principal) and therefore does not control the investee when it exercises its decision-making authority. The definition is derived from agency theory. In company law, the directors act as agents of the company. The … Read more