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A group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been … Read more
Topics hide Q&A Borrowing costs General scope and definitions Borrowing costs eligible for capitalisation Q&A Borrowing costs Q&A Borrowing costs is a questions and answers lesson type of narrative following the captions of this rather simple IFRS Standard. General scope and definitions Borrowing costs eligible for capitalisation Foreign exchange differences Cessation of capitalisation Interaction IAS … Read more
A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. 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 … Read more
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
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
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
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
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
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
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