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”

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…… Read more “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,…… Read more “IFRS 15 – Costs of obtaining a contract”

Under IFRS 9, one important condition for a financial asset to qualify for amortized cost classification is that the financial asset must meet the “SPPI” contractual cash…… Read more “IFRS 9 – The ‘SPPI’ test”

Under IFRS 15, an entity is required to assess whether a contract contains a significant financing component, if it receives consideration more than one year before or…… Read more “IFRS 15 – SIGNIFICANT FINANCING COMPONENT”