Variable Consideration IFRS 15 – Definition and Accounting

Variable Consideration

Variable Consideration IFRS 15 REFERS to the portion of the ‘transaction price’ that depends on uncertain future events, i.e. Performance Obligations, Warranties, Discounts, and Other Incentives that May AFFECT the final payment received by the seller. IFRS 15 [Revenue from Contracts with Customers] ESTABLISHES the criteria of ‘Revenue Recognition‘, effective from … Read More

IFRS 7 — Financial Instruments – Disclosures

IFRS 7 - Financial Instruments (Disclosures)

The ‘OBJECTIVE’ of IFRS 7 is to Require entities to provide disclosures in their Financial Statements that enable users to evaluate:  IFRS 7 Effective Date An entity shall apply this IFRS for annual periods beginning on or after 1 January 2007. Earlier application is ‘ENCOURAGED’. If an entity applies this IFRS … Read More

IFRS 8 — Operating Segments

IFRS 8 - Operating Segments

The ‘CORE PRINCIPLE’ of IFRS 8 is that an entity shall Disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environment(s) in which it operates. IFRS 8 Effective Date An entity shall … Read More

IFRS 3 — Business Combinations

IFRS 3 (Business Combinations)

The ‘OBJECTIVE’ of IFRS 3 is to Improve the relevance, reliability and comparability of the information that a reporting entity provides in its ‘Financial Statements’ about a business combination and its effects. To accomplish that, this IFRS establishes principles and requirements for how the acquirer: IFRS 3 Effective Date This … Read More

IFRS 2 — Share-based Payment


The ‘OBJECTIVE’ of IFRS 2 is to Specify the ‘financial reporting’ by an entity when it undertakes a share‑based payment transaction. In particular, it requires an entity to reflect in its profit or loss and financial position the effects of share‑based payment transactions, INCLUDING expenses associated with transactions in which ‘share options‘ are … Read More