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Allocate the transaction price to POs – This part relates to a complete explanation of IFRS 15 Revenue from contracts with customers in respect of Engineering & Construction contracts, see Revenue from Engineering & Construction contracts. Allocate the transaction price to POs Once the performance obligations are identified and the transaction price has been determined, IFRS … Read more
Use back button from the brower Last Updated on 11/03/2021 by 75385885 The term “unavoidable costs” has a specific meaning for accounting purposes. The IASB explains it as “the lower of the cost of fulfilling the contract and any compensation or penalties arising from failure to fulfill it.” However in May 2020 IASB issued amendments … Read more
Performance obligations software contracts and cloud services contracts – Once an entity has identified the contract with a customer, it evaluates the contractual terms and its customary business practices to identify all the promised goods or services within the contract and determine which of those promised goods or services (or bundles of promised goods or … Read more
IFRS 15 Sales with buyback options (ie IFRS 15 Sales with buyback options) – Original Equipment Manufacturers (OEMs) may have a right or obligation to repurchase vehicles as part of a contract with a customer or may provide residual value guarantees to certain customers. Examples include repurchase options on sales of fleet vehicles or residual … Read more
Use back button from the brower Last Updated on 26/03/2021 by 75385885 Residual value guarantees are a components of lease payments (amounts expected to be payable by the lessee under residual-value-guarantees) together with: fixed payments (including in-substance fixed payments), less any lease incentives receivable; variable lease payments that depend on an index or a rate; … Read more
Voluntary separation non-insurance components The prohibition of Voluntary separation non-insurance components will have a significant impact on some accounting practices. The IASB considered whether to permit an entity to separate a non-insurance component when not required to do so by IFRS 17, for example, some investment components with interrelated cash flows, such as policy loans. … Read more
Timing of Initial Recognition of Insurances – Groups of insurance contracts are initially recognised from the earliest of [IFRS 17 25]: when the coverage period starts; when the first payment from the policyholder is due, or actually received if there is no due date; and Timing of Initial Recognition of Insurances based on the facts … Read more
Topics hide Practical implications of IFRS 17 transition choices Practical implications of IFRS 17 transition choices Practical implications of IFRS 17 transition choices The choice between the modified retrospective approach and the fair value approach on transition will impact shareholders’ equity on transition and the release of profit from the insurance contracts in force after … Read more
Accounting Policies to First IFRS FS – 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 period, unless there is … Read more
Debt instruments with par prepayment features that give rise to compensation being paid to the party triggering the possibility to be measured at amortised cost or fair value through other comprehensive income (FVOCI) in certain circumstances. Instruments with certain par prepayment features If a financial asset would otherwise meet the SPPI test, but fails to … Read more