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Inventory costing – is about costs allocated to value inventory in stock at the end of a reporting period and calculate the costs of sales/gross profit earned in a period. Most operations comprise retail or wholesale operations, using relatively simple inventory costing systems such as FIFO, LIFO or Average Costs, other operations such as manufacturing … Read more
Disclosure financial assets and liabilities Introductory guidance Disclosing financial assets and liabilities (financial instruments) in one note Users of financial reports have indicated that they would like to be able to quickly access all of the information about the entity’s financial assets and liabilities in one location in the financial report. The notes are therefore … Read more
Topics hide The SPPI Test Overall assessment Money market funds Factors to consider in the SPPI Test Whether payment terms are “not genuine” or “de minimis” Rights in bankruptcy or when non-payment happens Arrangements denominated in a foreign currency Prepayment and term extending options Extending options Other contingent payment features Non-recourse arrangements The time value … Read more
Under IFRS 9 Impairment requirements, recognition of impairment no longer depends on a reporting entity first identifying a credit loss event. IFRS 9 instead uses more forward-looking information to recognise expected credit losses for all debt-type financial assets that are not measured at fair value through profit or loss. IFRS 9 requires an entity to … Read more
Low credit risk operational simplification IFRS 9 contains an important simplification that, if a financial instrument has low credit risk, then an entity is allowed to assume at the reporting date that no significant increases in credit risk have occurred. The low credit risk concept was intended, by the IASB, to provide relief for entities … Read more
Topics hide Collateral and expected credit losses Example inclusion collateral in ECL Lease receivables Collateral and expected credit losses Collateral and expected credit losses In IFRS 9 collateral is a relevant factor in the measurement of expected credit losses. In IFRS 9 the estimate of expected cash shortfalls is reflected by the cash flows expected … Read more
Past due status and more than 30 days past due rebuttable presumption – making loss provision calculations simple – The second simplification available in IFRS 9 sets out a rebuttable presumption that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due. … Read more
Topics hide Basel Committee IFRS 9 Guidance Principles underlying the Banking IFRS 9 Guidance Application of the ECL requirements in the Banking IFRS 9 Guidance Key banking aspects of Banking IFRS 9 Guidance Proportionality, materiality and symmetry Reasonable and supportable information Consideration of forward looking information Grouping of exposures Credit risk grades at banks Assessment … Read more
(adsbygoogle = window.adsbygoogle || []).push({}); Topics hide IAS 32 Equity and Financial Liabilities Classification as a financial liability or equity General principles Puttable instruments Obligations arising on liquidation Impact of share settlement Redemption options Classification of rights issues Compound instruments Accounting for conversion at maturity Recognition and measurement Treasury shares Dividends Distributions of non-cash assets … Read more
Performance obligations at a point in time or in full ‘Performance obligations satisfied at a point in time’) and Performance obligations satisfied over time are the two choices in IFRS 15. Performance obligations at a point in time Determine over time To determine whether revenue allocated to a performance obligation should be recognised over time, … Read more