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Satisfaction of construction performance obligations considers key implications IFRS 15 Revenue from Contracts with Customers for real estate entities. It provides an overview of the revenue recognition model in IFRS 15 with a focus on entities that: Own, operate and sell real estate Provide property management services Construct and sell residential property IFRS 15 introduced … Read more
Impairment testing cash generating unit with leases (or impairment of leased assets) is about a right-of-use asset (leased asset) and such an asset will frequently be included in a cash generating unit to be tested for impairment. At initial recognition, the right-of-use-asset equals the recognised lease liability, plus any lease payments made at or before … Read more
Topics hide IFRS 15 Vehicle sales by OEMs Another example – same subject And yes one more on the run – Repurchase agreement OEM IFRS 15 Vehicle sales by OEMs IFRS 15 Vehicle sales by OEMs IFRS 15 Vehicle sales by OEMs (Original Equipment Manufacturers) shows examples of real life situations, in this case close … Read more
Contract modifications and variable consideration are sometimes not easy to distinguish from one another. So here is a discussion bringing them together. IFRS 15 Revenue from Contracts with Customers (contents page is here) introduced a single and comprehensive framework which sets out how much revenue is to be recognised, and when. The core principle is … Read more
Topics hide IFRS 9 Reclassification of financial instruments Accounting for IFRS 9 Reclassification of financial instruments Example – IFRS 9 Changes in business model Notice: Changes in the way in which assets are managed Example – Lapse of a contractual term Timing of reclassification of financial assets Notice: No definition of ‘reporting period’ Notice: Long … Read more
Ultimate guide to IFRS 3 Business combinations outlines the accounting when an acquirer obtains control of a business (e.g. an acquisition or merger). Such business combinations are accounted for using the ‘acquisition method’, which generally requires assets acquired and liabilities assumed to be measured at their fair values at the acquisition date. Topics hide Definitions: … Read more
Licensing establishes a customer’s rights to the intellectual property of an entity. Licenses of intellectual property may include, but are not limited to, licenses of any of the following: Software (other than software subject to a hosting arrangement) and technology Motion pictures, music, and other forms of media and entertainment Franchises Licensing Patents, trademarks, and … Read more
IAS 20 Accounting for emissions trading schemes, emission allowances, certified emission reductions and emission rights will become more important for entities’ financial reporting purposes. Topics hide Account for Emissions trading schemes and Account for certified emission reductions Accounting for emissions trading schemes Certified emission reductions Accounting for Emission allowances Accounting considerations for emission allowances Account … Read more
Topics hide IFRS 3 Royalty arrangements as contingent considerations Compensation Extractive industry royalty arrangements Example – contingent consideration royalties Royalty arrangement as contingent arrangement Example – Accounting for royalties in the pharmaceutics industry Scenario: Acquisition of a business that includes future royalties payable to a seller IFRS 3 Royalty arrangements as contingent considerations Companies in … Read more
Use back button from the brower Last Updated on 05/05/2021 by 75385885 There are several ways errors may be included in a set of financial statements. There may be classification errors, measurement errors, presentation errors, disclosure errors and/or other errors. There are two important distinct types of errors in financial statements: material errors, see material … Read more