IFRS 15 Power purchase agreement

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Topics hide IFRS 15 Power purchase agreement Case – Identify the performance obligations (power purchase agreement (‘PPA’)) Case – Identify the performance obligations (gas supply agreement) Case – Identify the performance obligations (design and build a power plant) Take-or-pay power supply and similar long-term energy supply agreements Failed own use on trading contracts IFRS 15 … Read more

Transaction price power and utilities

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Topics hide Determining the transaction price power and utilities Variable consideration power and utilities Case – Variable consideration: performance bonus Case – Price protection if competitor subsequently lowers price Provisional pricing arrangements power and utilities Case – Variability arises from market price only Case – Variability arises from physical attributes only Case – Variability arises … Read more

Payment holidays on loans

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Topics hide Payment holidays on loans under IFRS 9 What is this all about? Accounting treatment of payment deferrals – Overview Treatment of payment holidays under IFRS 9 – Loan classification and measurement IFRS 9 – Classification, measurement and interest income recognition Authorities’ public statements on Covid-19 related payment deferrals Disclosure Practical considerations – Overview … Read more

How to Write Notes to Financial Statements under IFRS

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Warren Buffett once said: “Other guys read Playboy. I read annual reports.” This is a profound statement indicating that Warren Buffett actually takes his time to go through a complete annual report, including the financial statements and notes. Thus, Mr. Buffett does NOT consider the numerical information about the company as sufficient for him to … Read more

Measurement of investment property

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Topics hide Measurement of investment property Introduction 1. Investment properties under construction 1.1 Accounting for the costs of construction 2. Subsequent measurement of investment property 2.1 Costs incurred after initial recognition 2.2 Replacement of parts of investment property and subsequent expenditure 2.3 Subsequent measurement: Cost model 2.4 Subsequent measurement: Fair value model Measurement of investment … Read more

Identified asset – 2 Complete with comprehensive examples

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Topics hide Identified asset 1. Specified asset 1.1 Capacity portions 1.2 Substantive supplier substitution rights 3. Right to direct the use 3.1 How and for what purpose decisions 3.2 Determining who makes the how and for what purpose decisions 3.3 How and for what purpose decisions are predetermined 3.4 Supplier’s protective rights Identified asset a … Read more

Acquisition of investment properties – How 2 best account it

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Topics hide Acquisition of investment properties Asset acquisition or business combination New guidance (from 1 January 2020 or earlier) The concentration test Case – Acquisition of a residential real estate portfolio Framework in IFRS 3 Case – Acquisition of a residential and office real estate portfolio Case – Acquisition of a residential and office real … Read more

Fair value measurement and pandemics under IFRS 13

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Topics hide Fair value measurement and pandemics Fair value measurement and pandemics Food for thought – Market downturn from pandemics Food for thought – Volume of transactions Resume Fair value measurement and pandemics The context The virus has significantly impacted the world economy. Many countries have imposed travel bans on millions of people and more … Read more

Exit price

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The price that would be received to sell an asset or paid to transfer a liability.         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) IFRS Standards … Read more

IFRS vs US GAAP Events after the reporting date

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Topics hide IFRS vs US GAAP Events after the reporting date Overview Recognised events / Adjusting events Non-recognised events / Non-adjusting events Dividends Current vs non-current classification Earnings per share Disclosure of the subsequent-events date / Disclosure of the date of authorisation for issuance Discovery of a fraud after the reporting date IFRS vs US … Read more