Related Party Disclosures (IAS 24)

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Last updated: 26 February 2020 IAS 24 requires certain disclosures about related parties as it wants to draw users’ attention to the possibility that entity’s financial position and profit or loss may have been affected by the existence of related parties (IAS 24.1). Definition of a related party Definition of a related party is set … Read more

IAS 10 Recognition and measurement

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Last update 02/03/2020 Adjusting events after the reporting period 8 An entity shall adjust the amounts recognised in its financial statements to reflect adjusting events after the reporting period. 9 The following are examples of adjusting events after the reporting period that require an entity to adjust the amounts recognised in its financial statements, or … Read more

Borrowing Costs (IAS 23)

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Last updated: 14 May 2020 Borrowing costs are interest and other costs that an entity incurs in connection with the borrowing of funds (IAS 23.5). Recognition of borrowing costs Core principle Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of … Read more

Effects of Changes in Foreign Exchange Rates (IAS 21)

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Last updated: 17 March 2020 Effects of changes in foreign exchange rates are dealt with in IAS 21. Specifically, IAS 21 is applied in (IAS 21.3): accounting for transactions and balances in foreign currencies, translating the results and financial position of foreign operations that are included in the financial statements of the entity by consolidation … Read more

Accounting for Government Grants and Disclosure of Government Assistance (IAS 20)

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Last updated: 14 May 2020 Recognition and disclosure of government grants and other forms of government assistance is covered in IAS 20. Government assistance is as action by government designed to provide an economic benefit specific to an entity or range of entities qualifying under certain criteria. SIC Interpretation 10 Government Assistance—No Specific Relation to … Read more

Employee Benefits (IAS 19)

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Last updated: 16 May 2020 Employee benefits comprise all forms of consideration given by a reporting entity for service rendered by employees or for the termination of employment. Employee benefits may be provided under agreements between an entity and an employee, under requirements of local law (e.g. state pension plans) or result from a constructive … Read more

Depreciation and Amortisation of Property, Plant and Equipment and Intangible Assets (IAS 16 and IAS 38)

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Last updated: 15 March 2020 Depreciation and amortisation are systematic allocation of the depreciable amount of an asset over its useful life. Depreciation and amortisation are usually recognised as an expense in P/L, but they can also be included in the carrying amount of another asset. This happens when the future economic benefits embodied in … Read more

Cost of Property, Plant and Equipment (IAS 16)

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Last updated: 27 May 2020 Cost of property, plant and equipment (‘PP&E’) comprises (IAS 16.16): purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates. any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended … Read more

Grant date

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The date at which the entity and another party (including an employee) agree to a share-based payment arrangement, being when the entity and the counterparty have a shared understanding of the terms and conditions of the arrangement. At grant date the entity confers on the counterparty the right to cash, other assets, or equity instruments … Read more