The simplified approach does not require an entity to track the changes in credit risk, but instead, requires the entity to recognize a loss allowance based on…… Read more “IFRS 9 – IMPAIRMENT – SIMPLIFIED APPROACH”

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…… Read more “IFRS 9 – EMBEDDED DERIVATIVES”

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…… Read more “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…… Read more “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…… Read more “IFRS 16 – Lease Modifications”

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…… Read more “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…… Read more “IFRS 16 – Sale & Leaseback”