A Sublease occurs when a Tenant (the ‘Original Lessee’) rents out all or part of the leased property to another party, known as the Sublessee, while still remaining responsible to the original landlord. The original lease between the landlord and the tenant continues to exist, and the tenant acts as … Read More

The Going Concern Concept ENSURES Financial Statements reflect the assumption that the business will continue to operate in the foreseeable future. It is based on the idea that Co. ‘Financial Statements’ should REFLECT its ability to Meet its obligations and continue operating as a viable business entity. Accounting & Auditing … Read More

IFRS 18 introduces a New framework for presenting and disclosing information in financial statements, replacing parts of IAS 1. It aims to improve the Clarity, Consistency, and Comparability of ‘Financial Performance Reporting’ across companies. IASB Standard — Issued April 2024 Replaces IAS 1 Effective Date 1 Jan 2027 Early Adoption … Read More

Lease Modification, as per IFRS 16 refers to CHANGES made to the terms and conditions of a lease contract after its inception. These changes can result from negotiations between the LESSOR and the LESSEE or due to changes in laws and regulations. For example, lease modifications include changes in ‘Lease … Read More

IAS 17 Vs IFRS 16 a concept that relates to LEASING. ´IAS 17´ is the International Accounting Standard (IAS) for leases that was issued by the International Accounting Standards Board (IASB) in 1982, while IFRS 16 is the new leasing standard that was issued by the IASB in 2016. In-Depth … Read More

Sale and Leaseback a Concept which EXPLAINS that such transaction is accounted for as a ‘sale‘ of an underlying asset and a ‘leaseback‘ of that underlying asset only if the initial transaction QUALIFIES as a sale in accordance with IFRS 15 ‘Revenue from Contracts with Customers‘. In a ‘Sale and Leaseback … Read More

IFRS 16 sets out the principles for the Recognition, Measurement, Presentation and Disclosure of leases. The Objective is to ensure that ‘Lessees’ and ‘Lessors’ provide relevant information in a manner that faithfully represents those transactions. This information gives a basis for users of financial statements to assess the effect that … Read More

IAS 16 Cost Model Vs Revaluation Model STATES that ‘COST’ Model values assets at their historical cost less accumulated depreciation, while the ‘REVALUATION’ Model allows for the upward or downward adjustment of assets Carrying Amounts based on their fair value (FV). IAS 16 · Financial Reporting · IFRS Overview Cost … Read More

Cash Settled Share-based Payments as per IFRS 2 INCLUDE the transactions in which the entity acquires goods or services by incurring liability to transfer cash or other assets to the supplier of those goods or services for amounts that are based on the price (or value) of ‘Equity Instruments’ (including … Read More

Equity Settled Share-based Payments as per IFRS 2 account for the payment for goods/services in the form of Equity Instruments (‘Shares’ or ‘Share Options’) of the Co./group company. 📘 IFRS 2 · Accounting Standard 📅 Standard: IFRS 2 🏛 Body: IASB 📂 Category: Financial Reporting Definition Scope Recognition Measurement Vesting … Read More