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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
Last update 03/12/2019 Accounting Policies to First IFRS Financial statements – An entity must use the same accounting policies in its opening IFRS statement of financial position and throughout all periods presented in its first IFRS financial statements1. Those accounting policies must comply with each IFRSs effective at the end of its first IFRS reporting … Read more
Last update 31/07/2019 IAS 10 Definition: Those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified: Those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and … Read more
Last update 05/12/2019 Accounting policies for financial instruments – a quite complete overview of all kinds of accounting issues for financial instruments such as measurement categories, initial recognition, amortised costs and effective interest rate, financial assets, impairment, derecognition, financial liabilities, derecognition, and derivatives. Enjoy it! Summary of significant financial instruments accounting policies 1 Financial assets and liabilities 1.1 … Read more
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