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Topics hide IFRS 16 Variable lease payments Context of this narrative Variable lease payments that depend on an index or rate Reassessment of the lease liability Payments that depend on an index Worked example – Payments that depend on an index Worked example – Amortisation of lease liability and change in payment linked to an … Read more
The portion of payments made by a lessee to a lessor for the right to use an underlying asset during the lease term that varies because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. IFRS terms or definitions come from … Read more
IFRS 10 Special control approach determines which entities are consolidated in a parent’s financial statements and therefore affects a group’s reported results, cash flows and financial position – and the activities that are ‘on’ and ‘off’ the group’s balance sheet. Under IFRS, this control assessment is accounted for in accordance with IFRS 10 ‘Consolidated financial … Read more
Under IFRS 9 Impairment requirements, recognition of impairment no longer depends on a reporting entity first identifying a credit loss event. IFRS 9 instead uses more forward-looking information to recognise expected credit losses for all debt-type financial assets that are not measured at fair value through profit or loss. IFRS 9 requires an entity to … Read more
Low credit risk operational simplification IFRS 9 contains an important simplification that, if a financial instrument has low credit risk, then an entity is allowed to assume at the reporting date that no significant increases in credit risk have occurred. The low credit risk concept was intended, by the IASB, to provide relief for entities … Read more
Topics hide Collateral and expected credit losses Example inclusion collateral in ECL Lease receivables Collateral and expected credit losses Collateral and expected credit losses In IFRS 9 collateral is a relevant factor in the measurement of expected credit losses. In IFRS 9 the estimate of expected cash shortfalls is reflected by the cash flows expected … Read more
Topics hide IFRS 9 Financial instruments IFRS 9 Appendix B Impairment Low credit risk Financial instruments that have low credit risk at the reporting date IFRS 9 Financial instruments IFRS 9 Appendix B Impairment Low credit risk Financial instruments that have low credit risk at the reporting date B5.5.22 The credit risk on a financial … Read more
Use back button from the brower The term ‘undue cost or effort’ is not defined in IFRS 9, although it is clear from the guidance that information available for financial reporting purposes is considered to be available without undue cost or effort. Entities are not required to undertake an exhaustive search for information, it does … Read more
Past due status and more than 30 days past due rebuttable presumption – making loss provision calculations simple – The second simplification available in IFRS 9 sets out a rebuttable presumption that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due. … Read more
Topics hide IFRS 9 Financial instruments IFRS 9 Measurement 5.1 Initial measurement 5.2. Subsequent measurement of financial assets 5.3 Subsequent measurement of financial liabilities 5.4 Amortised cost measurement Financial assets 5.5 Impairment Recognition of expected credit losses Determining significant increases in credit risk Modified financial assets Purchased or originated credit-impaired financial assets Simplified approach for … Read more