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Introduction – IFRS 3 Remuneration prior to acquisition Topics show Introduction – IFRS 3 Remuneration prior to acquisition Illustrative summary of attributing fair value to IFRS 3 Remuneration prior to acquisition and IFRS 3 after acquisition Cash settlement of employee share-based payment awards Initiated by the acquirer EXAMPLE – Example of cash settlement of awards … Read more
Understanding how decisions, assumptions and fair-value mechanics shape acquisition accounting Topics show Understanding how decisions, assumptions and fair-value mechanics shape acquisition accounting 1 Introduction – IFRS 3 Significant Judgements and Estimates 2 Where it bites 3 Principles and Scope of IFRS 3 4 Key Judgements in Applying IFRS 3 4.1 Is it a Business or … Read more
Topics hide Acquisition of investment properties Asset acquisition or business combination New guidance (from 1 January 2020 or earlier) The concentration test Case – Acquisition of a residential real estate portfolio Framework in IFRS 3 Case – Acquisition of a residential and office real estate portfolio Case – Acquisition of a residential and office real … Read more
Topics hide Accounting for Business combinations cash flows 1. Presentation and disclosure of cash paid/acquired in a business combination 2. Transaction costs 3. Deferred and contingent consideration (i) Deferred consideration (ii) Contingent consideration Accounting for Business combinations cash flows 1. Presentation and disclosure of cash paid/acquired in a business combination When an entity acquires a … Read more
Topics hide Capitalisation of expenditure Capital expenditure (including equipment repairs and maintenance) Initial recognition of indirect costs Subsequent recognition of indirect costs Recording lease contracts – Right-of-Use Assets Subsequent Measurement of the Right-of-Use Asset Capitalisation of borrowing costs Capitalisation of cloud computing costs Accounting for a cloud computing arrangement that does not include an intangible … Read more
Topics hide Acquisitions and mergers Identifying a business combination Is the investee a ‘business’? Has control been obtained? Is the business combination within the scope of IFRS 3? Formation of a joint arrangement in the financial statements of the joint arrangement itself Common control combinations The acquisition by an investment entity of an investment in … Read more
Interest free loans As prescribed in IFRS 9.B5.1.1, a loan payable or receivable that carries no interest should be recognised at fair value measured as the present value of all future cash receipts discounted using the prevailing market rate(s) of interest for a similar instrument (currency, term, etc.) with a similar credit rating. An incremental … Read more
Topics hide Acquisitions and disposals – IFRS 3 Pharmaceutical and Life Sciences Disposals – Seller accounting for contingent consideration Buyers accounting for royalties and milestones payable to a seller in a business combination Acquisitions and disposals – IFRS 3 Pharmaceutical and Life Sciences Contingent consideration arrangements in acquisitions and disposals are common within the Pharmaceutical … Read more
Topics hide Contingent IFRS 3 Business combinations Buyer’s accounting for royalties and milestones payable to a seller in a business combination Contingent consideration in a business combination Assumed contingent consideration Compensation IFRIC 12 – Service Concession Arrangements Accounting model IFRS 16 Leases Lease Options to Extend or Terminate IAS 19 Employee benefits – Measurement Shared … Read more
This is an overview of the use of onerous in the IFRS Standards, the major Standard being IAS 37 (see below). Topics hide IAS 37: ‘Onerous Contracts – Cost of Fulfilling a Contract’ Conceptual Framework – Executory contracts IFRS 3 Business combinations IFRS 9 Own use contracts IFRS 15 Revenue from contracts with customers IFRS … Read more