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Objective 1 The objective of this Standard is to prescribe: when an entity should adjust its financial statements for events after the reporting period; and the disclosures that an entity should give about the date when the financial statements were authorised for issue and about events after the reporting period. The Standard also requires that … Read more
IAS 1 Objective IAS 1 Objective Scope Definitions 1 This Standard prescribes the basis for presentation of general purpose financial statements to ensure comparability both with the entity’s financial statements of previous periods and with the financial statements of other entities. It sets out overall requirements for the presentation of financial statements, guidelines for their … Read more
A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Last updated: 27 December 2019 Principal vs. agent considerations are otherwise known as gross vs. net presentation of revenue. A principal recognises revenue and expenses in gross amounts, whereas an agent recognises only fees or commissions, even if gross cash flows go through the agent (IFRS 15.B35-B36). Principal and agent – definitions The two key … Read more
Last updated: 18 March 2020 Transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties, e.g. VAT (IFRS 15.47). Transaction price is determined after taking into account the impact of the … Read more
Last updated: 1 March 2020 When to recognise revenue Revenue is recognised when/as performance obligations are satisfied in the amount of transaction price allocated to satisfied performance obligations (IFRS 15.46). A performance obligation is satisfied by transferring a promised good or service to a customer (IFRS 15.31). A good or service is transferred to a … Read more
Last update 03/02/2020 46 When (or as) a performance obligation is satisfied, an entity shall recognise as revenue the amount of the transaction price (which excludes estimates of variable consideration that are constrained in accordance with paragraphs 56–58) that is allocated to that performance obligation. Determining the transaction price 47 An entity shall consider the … Read more