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An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing goods or services to customers, generating investment income (such as dividends or interest) or generating other income from ordinary activities. IFRS terms or definitions are retrieved from IFRS Standards that come … Read more
Determining a leases discount rate IFRS 16.26 sets out the discount rate requirement as follows: “At the commencement date, a lessee shall measure the lease liability at the present value of the lease payments that are not paid at that date. The lease payments shall be discounted using the interest rate implicit in the lease, … Read more
IAS 36 Determine if and when to test for impairment – When looking at the step-by-step IAS 36 impairment approach it comes down to the following broadly organised steps: What?? – Determining the scope and structure of the impairment review (see the step-by-step IAS 36 impairment approach), If and when? – Determining if and when … Read more
When looking at the step-by-step IAS 36 impairment approach it comes down to the following broadly organised steps: What?? – Determining the scope and structure of the impairment review, If and when? – Determining if and when a quantitative impairment test is necessary, jump to this part here How? – Understanding the mechanics of the … Read more
When looking at the step-by-step IAS 36 impairment approach it comes down to the following broadly organised steps: What?? – Determining the scope and structure of the impairment review, explained here, If and when? – Determining if and when a quantitative impairment test is necessary, explained here, IAS 36 How? – Impairment test or understanding … Read more
Here we are, another year comes closer to its and – and what a year! Pandemic entered into our lives in early 2020 and we all must admit it – this was totally new experience, since only older generations can remember similar situation. Yes, it was and still is hard for all of us. The … Read more
Last updated: 31 October 2020 A contract modification is a change in the scope or price (or both) of a contract that creates new, or changes existing, rights or obligations. Contract modification that is an additional separate contract A contract modification should be treated as a separate contract for accounting purposes when both of the … Read more
Last updated: 2 November 2020 For disclosure and comparability purposes, IFRS 13 establishes a fair value hierarchy that categorises the inputs to valuation techniques into three levels (IFRS 13.72): Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2: inputs other … Read more
Last updated: 2 November 2020 The three widely used valuation techniques cited by IFRS 13 are the market approach, the cost approach and the income approach. Entities should choose a technique, or combination of techniques, that is most appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the … Read more