Equity – 2 understand it all at best

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Topics hide Equity 1. Equity the residual interest in the assets of the entity after deducting all its liabilities 1. Statement of Financial Position 2. Equity instrument is the contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities 2. Statement of Financial Position 3. Equity interests … Read more

Disclosure non-financial assets and liabilities example

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Topics hide Disclosure non-financial assets and liabilities example 8 Non-financial assets and liabilities 8(a) Property, plant and equipment 8(b) Leases 8(c) Investment properties 8(d) Intangible assets 8(e) Deferred tax balances 8(f) Inventories 8(g) Other assets and assets classified as held for sale 8(i) Provisions 8(j) Recognised fair value measurements Disclosure non-financial assets and liabilities example … Read more

Example Disclosure financial instruments

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Topics hide Example Disclosure financial instruments 7 Financial assets and financial liabilities 7(a) Trade receivables 7(b) Other financial assets at amortised cost 7(c) Financial assets at fair value through other comprehensive income 7(d) Financial assets at fair value through profit or loss 7(e) Cash and cash equivalents 7(f) Trade and other payables 7(g) Borrowings 7(h) … Read more

Revenue definition

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Topics hide Revenue definition Step 1 Identify the contract Case – Oral contract Attributes of a contract No contract under IFRS 15 Case – Collectability of the consideration Step 2 Identify separate performance obligations Step 3 Determine the transaction price Step 4 Allocate the transaction price to performance obligations Step 5 Recognise revenue as or … Read more

Best estimate

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Use back button from the brower Topics hide Best estimate Provisions IFRS 3 Business combinations Fair value contingent consideration Bargain purchase Employee benefits – Actuarial assumptions IFRS 17 Fulfilment cash flows Financial instruments Investment property – Value in use Service concession arrangements Best estimate The word ‘Best estimate‘ is one of those IFRS Jargon words … Read more

Definition of provision – IAS 37 Complete easy read

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Topics hide Definition of provision IAS 37: ‘Onerous Contracts – Cost of Fulfilling a Contract’ The key definition of provision Considerations Specific types of provisions/no-provisions Definition of provision The definition of provision is key to IAS 37. A provision is a liability of uncertain timing or amount, meaning that there is some question over either … Read more

Change in ownership in a subsidiary – IFRS 10 Best complete read

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Topics hide Change in ownership in a subsidiary Change in ownership in a subsidiary that do not result in loss of control Parent’s accounting treatment: Examples Parent sells shares in a subsidiary Parent acquires additional shares in a subsidiary Subsidiary issues new shares Change in ownership in a subsidiary that do result in loss of … Read more

IFRS 10 Accounting requirements

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Topics hide IFRS 10 Consolidated Financial Statements IFRS 10 Accounting requirements Non-controlling interests Loss of control IFRS 10 Consolidated Financial Statements IFRS 10 Accounting requirements 19 A parent shall prepare consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances. 20 Consolidation of an investee shall begin from the … Read more

Contingencies – Best and complete 2 read

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Topics hide Contingencies Recognition criteria for provisions and contingent liabilities Contingent Liabilities Recognition criteria for contingent assets Recognition criteria for contingent consideration Earn-outs Contingent consideration in shares or cash Goodwill and contingent consideration 12 month measurement period Examples Recognition criteria for contingent settlement provisions Illustration of classification process for contingent settlement provisions Recognition criteria for … Read more

IAS 37 Provisions – best estimate and timely recognition

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IAS 37 Provisions are liabilities of uncertain timing or amount A provision is recognised for a legal or constructive obligation arising from a past event, if there is a probable outflow of resources and the amount can be estimated reliably. ‘Probable’ in this context means more likely than not. A ‘constructive obligation’ arises when an entity’s … Read more