Accounting for Business Combinations (IFRS 3)

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Last updated: 4 April 2020 Under IFRS 3, business combinations should be accounted for using the acquisition method consisting of the following steps (IFRS 3.4-5): Identifying the acquirer. Determining the acquisition date. Recognising and measuring the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree. Recognising and measuring goodwill or a … Read more

IAS 32 Presentation

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Last update 05/03/2020 Topics hide Liabilities and equity (see also paragraphs AG13–AG14J and AG25–AG29A) Puttable instruments Liabilities and equity (see also paragraphs AG13–AG14J and AG25–AG29A) AG13 |   AG14J  |   AG25  |   AG29A 15 The issuer of a financial instrument shall classify the instrument, or its component parts, on initial recognition as a financial liability, a … Read more

Share-based Payment (IFRS 2)

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Last updated: 15 May 2020 Share-based payment agreements are transactions in which a third party is entitled to receive equity instruments of the entity (or another group entity) or cash amounts based on the value of such equity instruments in exchange for goods or services. See Appendix A to IFRS 2 for full definitions. There … Read more

IFRS 9 Objective – Scope

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Last update 12/02/2020 Topics hide Objective Scope Objective 1.1 The objective of this Standard is to establish principles for the financial reporting of financial assets and financial liabilities that will present relevant and useful information to users of financial statements for their assessment of the amounts, timing and uncertainty of an entity’s future cash flows … Read more

Investment Property (IAS 40)

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Last updated: 7 January 2020 Investment property Definition of investment property Investment property is property (land or a building—or part of a building—or both) held to earn rentals or for capital appreciation or both, rather than for use in the production or supply of goods or services or for administrative purposes; or sale in the … Read more

Recognition and Cost of Intangible Assets (IAS 38)

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Last updated: 8 April 2020 An intangible asset is recognised when it meets all of the criteria below (IAS 38.18,21): identifiability, probability of future economic benefits, control over the future economic benefits, reliable measurement of cost. An intangible asset is recognised at cost (IAS 38.24). IAS 38 provides application guidance for separate acquisition of intangible … Read more

IAS 38 Intangible Assets: Scope, Definitions and Disclosure

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Last updated: 15 March 2020 IAS 38 prescribes accounting treatment for all intangible assets that are not specifically covered elsewhere in IFRS. Examples of intangible assets that are not within the scope of IAS 38 are given in paragraphs IAS 38.2-3 (e.g. deferred tax assets, financial assets). Any expenditure that does not result in recognition … Read more

Contingent Assets and Contingent Liabilities (IAS 37)

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Last updated: 20 March 2020 Contingent assets and contingent liabilities are dealt with in IAS 37, except for assets and liabilities covered by another standard, as listed in paragraph IAS 37.5. See also the discussion on contractual assets and liabilities. What is a contingent liability? A contingent liability is (IAS 37.10; 27-30): a possible obligation … Read more

Provisions (IAS 37)

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Last updated: 1 June 2020 What is a provision? Provisions are liabilities of uncertain timing or amount. This uncertainty makes them different from accruals or payables, where the timing and amount are often contractual and the uncertainty is insignificant. Provisions are dealt with in IAS 37. However, items specifically covered by another standard are scoped … Read more