Identify a Contract with a Customer (IFRS 15)

by

Last updated: 28 February 2020 Contract A contract must meet the following criteria in order to be accounted for under IFRS 15 (IFRS 15.9): the parties to the contract have approved the contract and are committed to perform their obligations; the entity can identify each party’s rights regarding the goods or services to be transferred; … Read more

Scope of IFRS 15

by

Last updated: 19 February 2020 5-step revenue recognition model Revenue recognition under IFRS 15 is often presented as a 5-step model as shown below, although IFRS 15 itself does not follow these steps directly: Identify the contract. Identify performance obligations in the contract. Determine the transaction price. Allocate the transaction price to performance obligations. Recognise … Read more

Fair Value Measurement (IFRS 13)

by

Last updated: 7 November 2018 Definition of fair value and measurement approach Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (IFRS 13.9). In other words, it is a current exit price … Read more

Disclosure of Interests in Other Entities (IFRS 12)

by

Last updated: 7 November 2018 Scope of IFRS 12 IFRS 12 is a comprehensive standard that covers all disclosure requirements relating to interests in other entities. The objective of IFRS 12 is to require an entity to disclose information that enables users of its financial statements to evaluate the nature of, and risks associated with, … Read more

Joint Arrangements (IFRS 11)

by

Last updated: 14 May 2020 Reporting principles for entities that have interests in joint arrangements, that is arrangements which are controlled jointly with other party (or parties), are set out in IFRS 11. Accounting for joint arrangements focuses on the rights and obligations of the parties to joint arrangements, regardless of those arrangements’ structure or … Read more

Consolidated Financial Statements (IFRS 10)

by

Last updated: 14 May 2020 Consolidated financial statements are financial statements of a group in which assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity and with uniform accounting policies (IFRS 10.19,B86-B87). Preparation of consolidated financial statements is governed by IFRS … Read more

Hedge Accounting (IFRS 9)

by

Last updated: 25 May 2020 The objective of hedge accounting is to represent the effect of an entity’s risk management activities that use financial instruments to manage exposures arising from particular risks that could affect P/L or OCI (IFRS 9.6.1.1). If there were no specific requirements for hedge accounting, many risk management strategies could result … Read more

Derecognition of Financial Liabilities (IFRS 9)

by

Last updated: 3 June 2020 Derecognition is the removal of a previously recognised financial liability from an entity’s statement of financial position. See also separate page on derecognition of financial assets. Derecognition resulting from modifications and restructurings of financial liabilities Overview of requirements relating to modifications and restructurings An exchange between an existing borrower and … Read more

Derecognition of Financial Assets (IFRS 9)

by

Last updated: 19 February 2020 Derecognition is the removal of a previously recognised financial asset from an entity’s statement of financial position. In general, IFRS 9 criteria for derecognition of a financial asset aim to answer the question whether an asset has been effectively ‘sold’ and should be derecognised or whether an entity obtained a … Read more