Some contracts (that may or may not be financial instruments themselves) may have derivatives embedded in them. For example, an entity may issue a bond which is redeemable in five years' time with part of the redemption price being based on the increase in the FTSE 100 index. IFRS 9 requires embedded derivatives that would … Continue reading IFRS 9 – EMBEDDED DERIVATIVES
Our IFRS 9 seminar will take place on 09/04/2019 at the Synergy Conference Center. Please note that advance booking is essential as only 10 places are available for this event!
Examples of variable consideration include discounts, rebates, refunds, credits, price concession, incentives, performance bonuses and penalties. IFRS 15 introduces a constraint such that for most types of variable consideration should only be included in the transaction price to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue … Continue reading IFRS 15 – VARIABLE CONSIDERATION
IFRS 16 provides an optional exemption from the full requirements of the standard for: Short-term leases (leases with a lease term of 12 months or less)Leases for which the underlying asset is low value (e.g. tablet and personal computers, small items of furniture etc.). In this article we shall focus on the second exemption. The standard does not provide very much … Continue reading IFRS 16 – Leases of Low Value Assets
Lease modifications arise from changes to the underlying contract agreed between the lessee and the lessor subsequent to commencement of the lease. Under IFRS 16, the accounting for the modification depends on whether the modified terms increase or decrease the scope of the lease, and whether increases in scope require consideration to be paid that … Continue reading IFRS 16 – Lease Modifications
Save the date! Our full-day seminar on IFRS 15 will take place on 26/2/2019 at Crowne Plaza Limassol.
IFRS 9 requires equity investments (except those accounted under the equity method of accounting or those related to a consolidated investee), to be measured at FV. In limited circumstances, IFRS 9 permits an entity to use the cost as an appropriate estimate of the FV of unquoted equity investments. For example: When insufficient more recent information is available to measure fair value;When there is a … Continue reading IFRS 9 – MEASUREMENT OF UNQUOTED SHARES
In a sale-and-leaseback transaction (‘SALT’), an entity (seller-lessee) sells an asset to another entity (buyer-lessor) who then leases it back to the seller-lessee. The accounting for a SALT under IFRS 16 is significantly different to that required by IAS 17. In order to determine the appropriate accounting treatment under IFRS 16, the sale must first … Continue reading IFRS 16 – Sale & Leaseback
If the costs to fulfil a contract (e.g. a construction company may need to mobilize equipment to the construction site) are not within the scope of another Standard (e.g. IAS 2 Inventories or IAS 16 Property, Plant and Equipment), they should be recognized as an asset only if they meet all of the following: the … Continue reading IFRS 15 – Costs to fulfil a contract
Under IFRS 15, costs to obtain a contract that would have been incurred irrespective of whether the contract was obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer irrespective of whether the contract is obtained. The incremental costs of obtaining a contract with a customer are recognized … Continue reading IFRS 15 – Costs of obtaining a contract