SPAC Merger under IFRS 3

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Topics hide SPAC Merger Is the transaction a business combination? Accounting when the transaction is not a business combination Accounting when the transaction is a business combination Further considerations Identifying the accounting acquirer Is the acquisition a business combination? Developing an accounting policy when the listed shell is not a business Can the accounting simply … Read more

M and A

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M and A or Mergers and Acquisitions in IFRS language Business Combinations. 1 Identifying a business combination IFRS 3 refers to a ‘business combination’ rather than more commonly used phrases such as takeover, acquisition or merger because the objective is to encompass all the transactions in which an acquirer obtains control over an acquiree no … Read more

Cash flow forecasting

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Topics hide A Basic Guide to Cash Flow Forecasting What is Cash Flow Forecasting? Building Out Cash Flow Scenario Models How to Improve the Accuracy of Your Cash Flow Forecast Where are cash flow forecasting techniques used in IFRS? Goodwill impairment test – Telecom industry Carrying amount Recoverable amount Fair value less costs to sell … Read more

What is initial public offering

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Topics hide What is initial public offering Back-door listings Disclosure of key judgements Cost of initial public offering IPO costs cash flow classification Share-based payments at IPO What is initial public offering An Initial Public Offering (IPO) comprises of a privately owned business that wants access the public capital market through the sale of securities … Read more

Sub-leases under IFRS 16

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Sub-leases under IFRS 16 The classification guidance in IFRS 16 means that many sub-leases are finance leases, impacting the financial position and financial performance of intermediate lessors. A sub-lease is a transaction in which a lessee (or ‘intermediate lessor’) grants a right to use the underlying asset to a third party, and the lease (or … Read more

Lessor

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An entity that provides the right to use an underlying asset for a period of time in exchange for consideration.         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 … Read more

IFRS 16 Lessor accounting

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Topics hide IFRS 16 Lessor accounting 1. Lessor accounting model 2. Lease classification 3. Operating lease model 4. Finance lease model 5. Presentation and disclosure 5.1 Lessor presentation 5.2 Lessor disclosure IFRS 16 Lessor accounting Lessors continue to classify leases as finance or operating leases. 1. Lessor accounting model The lessor follows a dual accounting … Read more

Lessee accounting under IFRS 16

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Topics hide Lessee accounting under IFRS 16 1. Lessee accounting model 2. Initial measurement of the lease liability 2.1 Lease payments 2.3 Discount rate 3. Initial measurement of the right-of-use asset 4. Subsequent measurement of the lease liability 4.1 Measurement basis 4.2 Remeasurement of the lease liability 5 Subsequent measurement of the right-of-use asset 5.1 … Read more

IAS 36 Recognising and measuring an impairment loss

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Topics hide IAS 36 Impairment of assets IAS 36 Recognising and measuring an impairment loss IAS 36 Impairment of assets IAS 36 Recognising and measuring an impairment loss 58 Paragraphs 59–64 set out the requirements for recognising and measuring impairment losses for an individual asset other than goodwill. Recognising and measuring impairment losses for cash-generating … Read more

IFRS 16 Appendix B Lease term

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Topics hide IFRS 16 Leases IFRS 16 Appendix B Lease term IFRS 16 Leases IFRS 16 Appendix B Lease term Application Guidance to paragraphs 18 – 21 B34 In determining the lease term and assessing the length of the non-cancellable period of a lease, an entity shall apply the definition of a contract and determine … Read more