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<form action="https://annualreporting.info" method="get"><label class="screen-reader-text" for="cat">Pick by IFRS Standard</label><select name="cat" id="cat" class="postform">
    <option value="-1">Select Category</option>
    <option class="level-0" value="3950">IFRIC 17 Distributions of Non-cash Assets to Owners</option>
    <option class="level-0" value="1739">IFRS 17 Insurance Contracts</option>
    <option class="level-0" value="2622">IFRS 15 Revenue from customer contracts</option>
    <option class="level-0" value="78">IFRS 16 Leases</option>
    <option class="level-0" value="2323">IFRS 14 Regulatory Deferral Account</option>
    <option class="level-0" value="1148">IFRS 13 Fair value measurement</option>
    <option class="level-0" value="2311">IFRS 12 Disclosure of Interest in Other Entities</option>
    <option class="level-0" value="2310">IFRS 11 Joint Arrangements</option>
    <option class="level-0" value="3055">IFRS 10 Consolidated Financial Statements</option>
    <option class="level-0" value="2712">IFRS 9 Hedge accounting</option>
    <option class="level-0" value="622">IFRS 9 Financial instruments</option>
    <option class="level-0" value="720">IFRS 8 Operating segments</option>
    <option class="level-0" value="3847">IFRS 7 Financial Instruments: Disclosures</option>
    <option class="level-0" value="1923">IFRS 6 Exploration for and Evaluation of Mineral Resources</option>
    <option class="level-0" value="699">IFRS 5 Non-current Assets Held for Sale and Discontinued Operations</option>
    <option class="level-0" value="412">IFRS 3 Business Combinations</option>
    <option class="level-0" value="1934">IFRS 2 Share-based Payment</option>
    <option class="level-0" value="2296">IFRS 1 First Time Adoption of IFRS</option>
    <option class="level-0" value="2357">IAS 41 Agriculture</option>
    <option class="level-0" value="1584">IAS 40 Investment property</option>
    <option class="level-0" value="1814">IAS 38 Intangible assets</option>
    <option class="level-0" value="623">IAS 37 Provisions, Contingent Liabilities and Contingent Assets</option>
    <option class="level-0" value="701">IAS 36 Impairment of assets</option>
    <option class="level-0" value="2352">IAS 34 Interim Financial Reporting</option>
    <option class="level-0" value="2073">IAS 33 Earnings per share</option>
    <option class="level-0" value="3846">IAS 32 Financial Instruments: Presentation</option>
    <option class="level-0" value="2347">IAS 29 Financial Reporting in Hyperinflationary Economies</option>
    <option class="level-0" value="1585">IAS 28 Investments in Associates and Joint Ventures</option>
    <option class="level-0" value="2346">IAS 27 Separate Financial statements</option>
    <option class="level-0" value="2345">IAS 26 Accounting and Reporting by Retirement Benefit Plans</option>
    <option class="level-0" value="2337">IAS 24 Related Party Disclosures</option>
    <option class="level-0" value="2332">IAS 23 Borrowing costs</option>
    <option class="level-0" value="1755">IAS 21 The effects of Changes in Foreign Exchange Rates</option>
    <option class="level-0" value="537">IAS 20 Accounting for Government Grants and Disclosure of Government Assistance</option>
    <option class="level-0" value="536">IAS 19 Employee Benefits</option>
    <option class="level-0" value="535">IAS 16 Property, Plant and Equipment</option>
    <option class="level-0" value="534">IAS 12 Income Taxes</option>
    <option class="level-0" value="1687">IAS 10 Events after the Reporting Period</option>
    <option class="level-0" value="532">IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors</option>
    <option class="level-0" value="531">IAS 7 Statement of Cash Flows</option>
    <option class="level-0" value="281">IAS 2 Inventories</option>
    <option class="level-0" value="529">IAS 1 Presentation of Financial Statements</option>
    <option class="level-0" value="1768">IFRIC 23 Uncertainty over Income Tax Treatments</option>
    <option class="level-0" value="1759">IFRIC 22 Foreign Currency Transactions and Advance Consideration</option>
    <option class="level-0" value="1778">IFRIC 21 Levies</option>
    <option class="level-0" value="1802">IFRIC 12 Service Concession Arrangements blogs</option>
    <option class="level-0" value="1797">IFRIC 7 Applying the Restatement Approach under IAS 29</option>
    <option class="level-0" value="1785">IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities</option>
    <option class="level-0" value="3146">IFRSs for SMEs</option>
    <option class="level-0" value="3148">IFRS US GAAP Comparison</option>
    <option class="level-0" value="1045">IFRS – Blogs explanations of IFRS, backgrounds and examples</option>
    <option class="level-0" value="2949">IFRS Accounting decisions</option>
    <option class="level-0" value="30">Conceptual Framework</option>
    <option class="level-0" value="1591">The Objective of General Purpose Financial Reporting</option>
    <option class="level-0" value="552">Qualitative characteristics of useful financial information</option>
    <option class="level-0" value="1592">Financial Statements and the Reporting entity</option>
    <option class="level-0" value="547">The Elements of Financial Statements</option>
    <option class="level-0" value="554">Recognition and derecognition</option>
    <option class="level-0" value="1147">Measurement</option>
    <option class="level-0" value="1454">History of Financial Reporting</option>
    <option class="level-0" value="1">Uncategorized</option>
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ANNUAL REPORTING

Knowledge base for IFRS Reporting



Menu
 * IFRS Topics A – Z
 * IFRS in short
   * IFRS 2 Share-based payments
   * IFRS 3 Business Combinations
   * IFRS 4 Insurance contracts
   * IFRS 5 Non-current assets Held for Sale and Discontinued Operations
   * IFRS 6 Exploration for and Evaluation of Mineral Resources
   * IFRS 7 Financial instruments – Disclosures
   * IFRS 8 Operating Segments
   * IFRS 9 Financial instruments
   * IFRS 9 Hedge accounting
   * IFRS 10 Consolidated Financial Statements
   * IFRS 11 Joint Arrangements
   * IFRS 12 Disclosure of Interest in Other Entities
   * IFRS 13 Fair value measurement
   * IFRS 15 Revenue from Contracts with Customers
   * IAS 2 Inventories
   * IAS 8 Accounting policies estimates and errors
   * IAS 10 Events after the Reporting period
   * IAS 16 Property, plant and equipment
   * IAS 23 Borrowing costs
   * IAS 24 Related party disclosures
 * IFRS vs US GAAP
   * IFRS vs US GAAP Financial Statement presentation
   * IFRS vs US GAAP Revenue recognition
   * IFRS vs US GAAP Intangible assets goodwill
   * IFRS vs US GAAP Financial assets
     * IFRS vs US GAAP Nonfinancial assets
     * IFRS vs US GAAP Investment property
     * IFRS vs US GAAP Impairment
     * IFRS vs US GAAP Financial liabilities and equity
     * IFRS vs US GAAP Nonfinancial liabilities
   * IFRS vs US GAAP Derivatives and hedging
   * IFRS vs US GAAP Business combinations
   * IFRS vs US GAAP Taxation
   * IFRS vs US GAAP Share-based payments
 * The IFRS Standards
 * The IFRS Definitions
 * The IFRS Jargon

Menu
 * IFRS Topics A – Z
 * IFRS in short
   * IFRS 2 Share-based payments
   * IFRS 3 Business Combinations
   * IFRS 4 Insurance contracts
   * IFRS 5 Non-current assets Held for Sale and Discontinued Operations
   * IFRS 6 Exploration for and Evaluation of Mineral Resources
   * IFRS 7 Financial instruments – Disclosures
   * IFRS 8 Operating Segments
   * IFRS 9 Financial instruments
   * IFRS 9 Hedge accounting
   * IFRS 10 Consolidated Financial Statements
   * IFRS 11 Joint Arrangements
   * IFRS 12 Disclosure of Interest in Other Entities
   * IFRS 13 Fair value measurement
   * IFRS 15 Revenue from Contracts with Customers
   * IAS 2 Inventories
   * IAS 8 Accounting policies estimates and errors
   * IAS 10 Events after the Reporting period
   * IAS 16 Property, plant and equipment
   * IAS 23 Borrowing costs
   * IAS 24 Related party disclosures
 * IFRS vs US GAAP
   * IFRS vs US GAAP Financial Statement presentation
   * IFRS vs US GAAP Revenue recognition
   * IFRS vs US GAAP Intangible assets goodwill
   * IFRS vs US GAAP Financial assets
     * IFRS vs US GAAP Nonfinancial assets
     * IFRS vs US GAAP Investment property
     * IFRS vs US GAAP Impairment
     * IFRS vs US GAAP Financial liabilities and equity
     * IFRS vs US GAAP Nonfinancial liabilities
   * IFRS vs US GAAP Derivatives and hedging
   * IFRS vs US GAAP Business combinations
   * IFRS vs US GAAP Taxation
   * IFRS vs US GAAP Share-based payments
 * The IFRS Standards
 * The IFRS Definitions
 * The IFRS Jargon


IFRS 9 BEST LONG-READ SPPI TEST

10/05/202201/04/2021 by 75385885


THE SPPI TEST

If an asset is in a hold-to-collect or hold-to-collect or sell business model,
an entity assesses whether the cash flows from the financial asset meet the
‘solely payments of principal and interest’ (SPPI Test) benchmark – i.e. whether
the contractual terms of the financial asset give rise, on specified dates, to
cash flows that are solely payments of principal and interest.

 * ‘Principal’ is the fair value of the financial asset on initial recognition.
   The principal may change over time – e.g. if there are repayments of
   principal.
 * ‘Interest’ is consideration for the time value of money and credit risk.
   Interest can also include consideration for other basic lending risks and
   costs, and a profit margin.

A financial asset that does not meet the SPPI Test is always measured at FVPL,
unless it is a non-trading equity instrument and the entity makes an irrevocable
election to measure it at FVOCI. Here is the decision tree to put the narrative
in context:



Contractual cash flows that meet the SPPI Test are consistent with a basic
lending arrangement in the banking industry.

Read more

Categories IFRS 9 Financial instruments Tags SPPI Test Leave a comment


LOW CREDIT RISK OPERATIONAL SIMPLIFICATION

10/05/202220/03/2021 by 75385885

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 from tracking
changes in the credit risk of high quality financial instruments. Therefore,
this simplification is only optional and the low credit risk simplification can
be elected on an instrument-by-instrument basis.

This is a change from the 2013 ED, in which a low risk exposure was deemed not
to have suffered significant deterioration in credit risk. The amendment to make
the simplification optional was made in response to requests from constituents,
including regulators. It is expected that the Basel Committee SCRAVL
consultation document will propose that sophisticated banks should only use this
simplification rarely for their loan portfolios.



For low risk instruments, the entity would recognise an allowance based on
12-month ECLs. However, if a financial instrument is not considered to have low
credit risk at the reporting date, it does not follow that the entity is
required to recognise lifetime ECLs. In such instances, the entity has to assess
whether there has been a significant increase in credit risk since initial
recognition that requires the recognition of lifetime ECLs.

The standard states that a financial instrument is considered to have low credit
risk if: [IFRS 9.B5.22]

 * The financial instrument has a low risk of default
 * The borrower has a strong capacity to meet its contractual cash flow
   obligations in the near term
 * Adverse changes in economic and business conditions in the longer term may,
   but will not necessarily, reduce the ability of the borrower to fulfil its
   contractual cash flow obligations Low credit risk operational simplification

A financial instrument is not considered to have low credit risk simply because
it has a low risk of loss (e.g., for a collateralised loan, if the value of the
collateral is more than the amount lent (see collateral) or it has lower risk of
default compared with the entity’s other financial instruments or relative to
the credit risk of the jurisdiction within which the entity operates.

Read more

Categories IFRS 9 Financial instruments Tags Benchmark interest, Bond,
Collateral, Commitments, Comparable, Contractual cash flow, Credit default swap,
Credit risk, Debt instruments, Debt securities, Default, ECL, Forward-looking
information, Impairment, Interest rates, Investments, Lifetime Expected Credit
Losses, Loss allowance, Loss given default, Market participants, Operating cash
flows, Probability, Probability of default, Regulators, Risk of a default,
Security, Significant Increases in Credit Risk, Supportable information, SWAP,
Timely Leave a comment


PAYMENT HOLIDAYS ON LOANS

04/05/202204/10/2021 by 75385885


PAYMENT HOLIDAYS ON LOANS UNDER IFRS 9

Governments and banks have introduced payment deferral programs to support
borrowers affected by Covid-19. But deferred payments are not forgiven and must
be repaid in the future, raising prospective risks to the banking system. Thus,
they should be designed to balance near-term economic relief benefits with
longer-term financial stability considerations.

The Basel Committee on Banking Supervision (BCBS) and several prudential
authorities have issued statements clarifying how payment deferrals should be
considered in assessing credit risk under applicable accounting frameworks.
These measures aim to encourage banks to continue lending, to avert an even
deeper recession.



Prudential authorities are caught “between a rock and a hard place” as they
encourage banks – through various relief measures – to provide credit to
solvent, but cash-strapped borrowers, while keeping in mind the longer-term
implications of these measures for the health of banks and national banking
systems.

In navigating these tensions, banks and supervisors face a daunting task as
borrowers that may be granted payment holidays have varying risk profiles.
Distinguishing between illiquid and insolvent borrowers – amidst an uncertain
outlook – should help guide banks’ efforts to support viable borrowers, while
preserving the integrity of their reported financial metrics.


WHAT IS THIS ALL ABOUT?

Read more

Categories IFRS 9 Financial instruments Tags ECL Leave a comment


IFRS 16 LEASES PRESENTATION IN CASH FLOWS – COMPLETE EASY READ

25/03/2022 by 75385885


IFRS 16 LEASES PRESENTATION IN CASH FLOWS

Most changes from IAS 17/IFRIC 4 to IFRS 16 relate to lessees, the companies
renting a car, office or warehouse.

At first, IFRS 16 has affected balance sheet and balance sheet-related ratios
such as the debt/equity ratio. Aside from this, IFRS 16 also influenced the
income statement, because an entity now has to recognise interest expense on the
lease liability (obligation to make lease payments) and depreciation on the
‘right-of-use’ asset (that is, the asset that reflects the right to use the
leased asset).



Due to this, for lease contracts previously classified as operating leases the
total amount of expenses at the beginning of the lease period will be higher
than under IAS 17. Another consequence of the changes in presentation is that
EBIT and EBITDA will be higher for companies that have material operating
leases.

IFRS 16 also changes the cash flow statement. Lease payments that relate to
contracts that have previously been classified as operating leases are no longer
presented as operating cash flows in full. Only the part of the lease payments
that reflects interest on the lease liability can be presented as an operating
cash flow (depending on the entity’s accounting policy regarding interest
payments).

Cash payments for the principal portion of the lease liability are classified
within financing activities. Payments for short-term leases, leases of low-value
assets and variable lease payments not included in the measurement of the lease
liability remain presented within operating activities.

Presentation and disclosures

In the statement of cash flows, lease payments are classified consistently with
payments on other financial liabilities:

 * The part of the lease payment that represents cash payments for the principal
   portion of the lease liability is presented as a cash flow resulting from
   financing activities.
 * The part of the lease payment that represents interest portion of the lease
   liability is presented either as an operating cash flow or a cash flow
   resulting from financing activities (in accordance with the entity’s
   accounting policy regarding the presentation of interest payments).
 * Payments on short-term leases, for leases of low-value assets and variable
   lease payments not included in the measurement of the lease liability are
   presented as an operating cash flow.

A simple example to classify the movements in Right-of-use assets is as follows:



A simple example to classify the movements in Lease liabilities is as follows:



On the balance sheet, the right-of-use asset can be presented either separately
or in the same line item in which the underlying asset would be presented. The
lease liability can be presented either as a separate line item or together with
other financial liabilities. If the right-of-use asset and the lease liability
are not presented as separate line items, an entity discloses in the notes the
carrying amount of those items and the line item in which they are included.

In the statement of profit or loss and other comprehensive income, the
depreciation charge of the right-of-use asset is presented in the same line
item/items in which similar expenses (such as depreciation of property, plant
and equipment) are shown. The interest expense on the lease liability is
presented as part of finance costs. However, the amount of interest expense on
lease liabilities has to be disclosed in the notes.



IFRS 16 Leases presentation in cash flows IFRS 16 Leases presentation in cash
flows IFRS 16 Leases presentation in cash flows IFRS 16 Leases presentation in
cash flows IFRS 16 Leases presentation in cash flows IFRS 16 Leases presentation
in cash flows IFRS 16 Leases presentation in cash flows IFRS 16 Leases
presentation in cash flows IFRS 16 Leases presentation in cash flows IFRS 16
Leases presentation in cash flows IFRS 16 Leases presentation in cash flows IFRS
16 Leases presentation in cash flows



Categories IFRS 16 Leases, IAS 7 Statement of Cash Flows Tags Lease payments,
plant, Right-of-use assets Leave a comment


COUNTRY-BY-COUNTRY TAX REPORTING IAS 12 RISK OR PROFIT

29/01/2022 by 75385885


COUNTRY-BY-COUNTRY TAX REPORTING

Country-by-Country tax reporting has become a fact of life for multinational
enterprises (MNEs) with worldwide revenue above EUR 750 million.

While most MNEs have developed processes to gather and report the required
information, how well are they managing the risk associated with the Report?

Have they integrated the reporting process into their ongoing transfer pricing
management and documentation?

Is the information generated by the reporting process consistent with the intent
of their global transfer pricing policy?

Action 13 of the OECD’s Base Erosion and Profit Shifting (BEPS) Action Plan
introduced a CbC reporting template which certain multinational enterprises
(MNE) are required to complete and submit (usually) to the tax authority in
their home country.

Following a consultation process, the template was published in September 2014
and was finalised on October 5, 2015 when the OECD also published final
implementation guidance.

The final OECD report recommended that CbC reporting commence for periods
starting on or after January 1, 2016. In general, multinationals with
consolidated group revenue of less than EUR 750 million (or equivalent in local
currency) in the prior financial year are exempted from filing the CbC Report.

However, for those not exempt, filing with the parent country tax authority is
typically due within 12 months of the group’s financial year-end. If the country
of the MNE parent does not require reporting, it is the responsibility of the
MNE to designate a surrogate parent in a country where the CbC Report can be
filed.

One of the main reasons that tax authorities implemented the CbC reporting
requirement was to gain a better understanding of a multinational group’s
activities, value drivers, profit creation, and taxes paid in each of the
jurisdictions in which it operates.

Read more

Categories IAS 12 Income Taxes Leave a comment


UNCERTAIN TAX TREATMENTS IN IAS 12 AND IFRIC 23

25/01/2022 by 75385885


UNCERTAIN TAX TREATMENTS


UNCERTAIN TAX TREATMENTS – IN SHORT

Neither IAS 12 Income Taxes nor IFRIC 23 Uncertainty over Income Tax Treatments
(the Interpretation) contain explicit requirements on the presentation of
uncertain tax liabilities or assets in the statement of financial position.

This has led to diversity in practice. Some entities present uncertain tax
liabilities as current (or deferred) tax liabilities and others include these
balances within another line item such as provisions.



In September 2019, in response to a request for clarification on this matter,
the IFRS Interpretations Committee (the IFRS IC or the Committee) published an
agenda decision. The Committee concluded that an entity is required to present
uncertain tax liabilities as current tax liabilities or deferred tax
liabilities; and uncertain tax assets as current tax assets or deferred tax
assets.

Based on an earlier agenda decision, the impact of uncertain tax treatments that
meet the definition of income taxes should be presented in the statement of
profit or loss in the line item ‘tax expense’.

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Categories IAS 12 Income Taxes, IFRIC 23 Uncertainty over Income Tax Treatments
Tags Income Tax Treatments Leave a comment


WHAT IS THE MOST IMPORTANT DISCLOSURE DEFINITION UNDER IAS 1?

22/01/2022 by 75385885


WHAT IS THE DISCLOSURE DEFINITION UNDER IFRS?

Disclosure definition – one of the best ways to explain the need for disclosures
is provided in IAS 1.119 ‘management considers whether disclosure would assist
users in understanding how transactions, other events and conditions are
reflected in reported financial performance and financial position. Each entity
considers the nature of its operations and the policies that the users of its
financial statements would expect to be disclosed for that type of entity.‘


LET US POINT TO SOME IFRS DISCLOSURE PARTICULARITIES

In IAS 1 Presentaion of Financial Statements the overall disclosure requirements
are provided. Other IAS/IFRSs set out the recognition, measurement and
disclosure requirements for specific transactions and other events (IAS 1.3).

An entity cannot rectify inappropriate accounting policies either by disclosure
of the accounting policies used or by notes or explanatory material (IAS 1.18).

Some IAS/IFRSs specify information that is required to be included in the
financial statements, which include the notes. An entity need not provide a
specific disclosure required by a IFRS if the information resulting from that
disclosure is not material. This is the case even if the IFRS contains a list of
specific requirements or describes them as minimum requirements.

An entity shall also consider whether to provide additional disclosures when
compliance with the specific requirements in IFRS is insufficient to enable
users of financial statements to understand the impact of particular
transactions, other events and conditions on the entity’s financial position and
financial performance (IAS 1.31).


MINIMUM COMPARATIVE INFORMATION

In some cases, narrative information provided in the financial statements for
the preceding period(s) continues to be relevant in the current period. For
example, an entity discloses in the current period details of a legal dispute,
the outcome of which was uncertain at the end of the preceding period and is yet
to be resolved. Users may benefit from the disclosure of information that the
uncertainty existed at the end of the preceding period and from the disclosure
of information about the steps that have been taken during the period to resolve
the uncertainty (IAS 1.38B).

Read more

Categories IAS 1 Presentation of Financial Statements Tags and equipment,
Financial Instruments: Disclosures, plant Leave a comment


IRR HOW TO CALCULATE

19/01/2022 by 75385885


IRR HOW TO CALCULATE

The Internal Rate of Return (IRR) is the discount rate that makes the net
present value (NPV) of a project zero. In other words, it is the expected
compound annual rate of return that will be earned on a project or investment.

When calculating IRR, expected cash flows for a project or investment are given
and the NPV equals zero. Put another way, the initial cash investment for the
beginning period will be equal to the present value of the future cash flows of
that investment. (Cost paid = present value of future cash flows, and hence, the
net present value = 0).



Once the internal rate of return is determined, it is typically compared to a
company’s hurdle rate or cost of capital. If the IRR is greater than or equal to
the cost of capital, the company would accept the project as a good investment.
(That is, of course, assuming this is the sole basis for the decision).

In reality, there are many other quantitative and qualitative factors that are
considered in an investment decision). If the IRR is lower than the hurdle rate,
then it would be rejected, if IRR is the only investment consideration.

Under IFRS 16 ‘Leases’, a similar calculation is used to calculate discount
rates are used to determine the present value of the lease payments used to
measure a lessee’s lease liability. Discount rates are also used to determine
lease classification for a lessor and to measure a lessor’s net investment in a
lease.

For lessees, the lease payments are required to be discounted using:

 * the interest rate implicit in the lease (IRIL), if that rate can be readily
   determined, or
 * the lessee’s incremental borrowing rate (IBR).

For lessors, the discount rate will always be the interest rate implicit in the
lease.

The interest rate implicit in the lease is defined in IFRS 16 as ‘the rate of
interest that causes the present value of (a) the lease payments and (b) the
unguaranteed residual value to equal the sum of (i) the fair value of the
underlying asset and (ii) any initial direct costs of the lessor.’

The lessee’s incremental borrowing rate is defined in IFRS 16 as ‘the rate of
interest that a lessee would have to pay to borrow over a similar term, and with
a similar security, the funds necessary to obtain an asset of a similar value to
the right-of-use asset in a similar economic environment’.

The incremental borrowing rate is determined on the commencement date of the
lease. As a result, it will incorporate the impact of significant economic
events and other changes in circumstances arising between lease inception and
commencement.

Read more

Categories IFRS 16 Leases Tags Discount rates, Impairment, IRR, Lenders, Lessee,
Property, Treasury Leave a comment


IFRS 15 PRE-CONTRACT ESTABLISHMENT DATE ACTIVITIES – IMPORTANT TO KNOW

04/01/2022 by 75385885


PRE-CONTRACT ESTABLISHMENT DATE ACTIVITIES

or


PARTIALLY SATISFIED PERFORMANCE OBLIGATIONS BEFORE THE IDENTIFICATION OF A
CONTRACT

Entities sometimes begin activities on a specific anticipated contract with
their customer before (1) the parties have agreed to all of the contract terms
or (2) the contract meets the criteria in step 1 (see Step 1 Identify the
contract) of IFRS 15. The IASB staff refer to the date on which the contract
meets the step 1 criteria as the “contract establishment date” (CED) and refer
to activities performed before the CED as “pre-CED activities.”

TRG UPDATE — PRE-CED ACTIVITIES

The FASB and IASB staffs noted that stakeholders have identified two issues with
respect to pre-CED activities:

 * How to recognize revenue from pre-CED activities.
 * How to account for certain fulfillment costs incurred before the CED.

The TRG discussed these issues in March 2015.

TRG members generally agreed with the staffs’ conclusion that once the criteria
in step 1 have been met, entities should recognize revenue for pre-CED
activities on a cumulative catch-up basis (i.e., record revenue as of the CED
for all satisfied or partially satisfied performance obligations) rather than
prospectively because cumulative catch-up is more consistent with the new
revenue standard’s core principle.

The two Q&A below demonstrates the application of the TRG’s general agreement.

Read more

Categories IFRS 15 Revenue from customer contracts Tags contract with a
customer, enforceable, Identify the contract, Revenue Leave a comment


HIGHEST AND BEST USE

04/01/202204/01/2022 by 75385885
Highest and best use is the use of a non-financial asset by market participants
that would maximise the value of the asset/group of assets and liabilities
Categories IFRS 13 Fair value measurement Tags highest and best use, Inflation,
Investment properties, Investment property, Liabilities, Market participants,
Market value, Property, Research and Development Leave a comment
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Hyperinflationary Economies IAS 28 Investments in Associates and Joint Ventures
IAS 27 Separate Financial statements IAS 26 Accounting and Reporting by
Retirement Benefit Plans IAS 24 Related Party Disclosures IAS 23 Borrowing costs
IAS 21 The effects of Changes in Foreign Exchange Rates IAS 20 Accounting for
Government Grants and Disclosure of Government Assistance IAS 19 Employee
Benefits IAS 16 Property, Plant and Equipment IAS 12 Income Taxes IAS 10 Events
after the Reporting Period IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors IAS 7 Statement of Cash Flows IAS 2 Inventories IAS 1
Presentation of Financial Statements IFRIC 23 Uncertainty over Income Tax
Treatments IFRIC 22 Foreign Currency Transactions and Advance Consideration
IFRIC 21 Levies IFRIC 12 Service Concession Arrangements blogs IFRIC 7 Applying
the Restatement Approach under IAS 29 IFRIC 1 Changes in Existing
Decommissioning, Restoration and Similar Liabilities IFRSs for SMEs IFRS US GAAP
Comparison IFRS – Blogs explanations of IFRS, backgrounds and examples IFRS
Accounting decisions Conceptual Framework The Objective of General Purpose
Financial Reporting Qualitative characteristics of useful financial information
Financial Statements and the Reporting entity The Elements of Financial
Statements Recognition and derecognition Measurement History of Financial
Reporting Uncategorized


BEST READS

 * Cryptocurrencies
 * IAS 21 Monetary conversion
 * IFRS 17 Insurance contracts
 * IFRS 15 Revenue from Contracts with Customers
 * IFRS 9 Financial instruments
 * IAS 1 Presentation of financial statements
 * IAS 36 Impairment of assets
 * IAS 37 Provisions
 * IAS 38 Intangible assets
 * IFRS 16 Leases – Best Complete Read
 * Investment property


NEWEST IFRS TOPICS

 * IFRS 16 Leases presentation in cash flows – Complete easy read
 * Country-by-Country tax reporting IAS 12 Risk or Profit
 * Uncertain tax treatments in IAS 12 and IFRIC 23
 * What is the most important disclosure definition under IAS 1?
 * IRR How to calculate


STILL HAVEN’T FOUND WHAT YOU’RE LOOKING FOR……..

Accounting policies Amortised cost and equipment Asset or liability Business
Combinations Business model Carrying amount Consolidated financial statements
Consolidation Control Credit risk Default Derivatives Discount rate Dividends
Employees Equity Equity instrument Equity instruments Fair value measurement
Financial assets Financial liabilities Financial liability GAAP Gains and losses
Impairment Insurance contract Investments Liabilities Manufacturing Measurement
Notes Other comprehensive income plant Plant and equipment Probability Property
Provisions Reliable Revenue Statement of Financial Position Subsidiaries
Termination Time value of money Transaction price


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