Capitalisation of expenditure – 1 Complete answer

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Topics hide Capitalisation of expenditure Capital expenditure (including equipment repairs and maintenance) Initial recognition of indirect costs Subsequent recognition of indirect costs Recording lease contracts – Right-of-Use Assets Subsequent Measurement of the Right-of-Use Asset Capitalisation of borrowing costs Capitalisation of cloud computing costs Accounting for a cloud computing arrangement that does not include an intangible … Read more

The real meaning of Integrated reporting

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Topics hide The real meaning of integrated reporting The reason for including environmental and social factors in reporting CSR (Corporate Social Responsibility) reports IIRC Meaning Guiding principles Integrated reporting: what it isn’t Considerations and benefits of integrated reporting Key considerations for the integrated reporting decision The benefits of integrated reporting The way to integration Key … Read more

Acquisitions and mergers as per IFRS 3

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Topics hide Acquisitions and mergers Identifying a business combination Is the investee a ‘business’? Has control been obtained? Is the business combination within the scope of IFRS 3? Formation of a joint arrangement in the financial statements of the joint arrangement itself Common control combinations The acquisition by an investment entity of an investment in … Read more

Initial measurement financial instruments

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Topics hide Initial measurement Financial instruments The ‘which’ and ‘how’ of fair value measurement Trade receivables Food for thought – Measuring trade receivables on initial recognition Measurement of fair value Food for thought – Market Food for thought – Market participant assumptions Fair value of offsetting market risk or counterparty credit risk for groups of … Read more

Amortised cost and the effective interest method

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Topics hide Amortised cost and the effective interest method Calculating amortised cost Calculating the EIR 1. General approach 2 Credit-adjusted EIR 3 Calculating interest revenue and expense using the EIR 4 Revisions to estimated cash flows 5 Modifications of financial assets Amortised cost and the effective interest method This narrative explores the factors that an … Read more

Amortised cost of a financial asset or financial liability

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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 for any loss allowance.         IFRS … Read more

Interest rate implicit in the lease

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The rate of interest that causes the present value of (a) the lease payments and (b) the unguaranteed residual value to equal the sum of (i) the fair value of the underlying asset and (ii) any initial direct costs of the lessor.         IFRS terms or definitions come from the Official Journal … Read more

Lease incentives

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Payments made by a lessor to a lessee associated with a lease, or the reimbursement or assumption by a lessor of costs of a lessee.         IFRS terms or definitions come from the Official Journal of the European Union (© European Union, https://eur-lex.europa.eu). Individual jurisdictions around the world may require or permit … Read more

Derecognition

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The removal of a previously recognised financial asset or financial liability from an entity’s statement of financial position.         IFRS terms or definitions come from the Official Journal of the European Union (© European Union, https://eur-lex.europa.eu). Individual jurisdictions around the world may require or permit the use of (locally authorised and/or amended) … Read more

IFRS Reporting for Battery Storage – A Burgeoning Industry

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Topics hide IFRS Reporting for Battery Storage – A Burgeoning Industry What is important in IFRS Reporting for Battery Storage? Research and Development Intangible assets (other than goodwill) TRANSFERS OF FINANCIAL ASSETS GOODWILL NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS COMMITMENTS IFRS Reporting for Battery Storage – A Burgeoning Industry Batteries have been around … Read more