International Financial Reporting Standards
IFRIC 16 DESCRIBES hedges of a net investment in a foreign operation, and STATES that the Presentation Currency does NOT create an exposure, the hedging instrument May-be held by any entity, IAS 21 to be applied in respect of the hedged item. IFRIC 16 – Key Terms 1. Foreign Operation … Read More
IFRS 15 Warranty concept STATES the Warranty Classification EITHER as ‘Service Type‘ (a service in addition to the assurance), or ‘Assurance Type‘ (the assurance that the product will function as specified). IFRS 15 Warranty – Types and Accounting In determining the ‘CLASSIFICATION’ of a Warranty, an entity considers: Service Type Assurance Type … Read More
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 15 Journal Entries STATES the ‘accrual‘ to record the Sale/Revenue involves a DEBIT to receivable account and a CREDIT to sales revenue account; If the sale is for ‘cash‘, the cash account would be debited instead. IFRS 15 Journal Entries [Scenario: Five-Step Model] Step 1: Identify the Contract Before any … Read More
IFRS 15 Illustrative Examples PROVIDE a general overview of the types of examples included in International Financial Reporting Standard. IFRS 15 provides GUIDANCE on recognizing revenue from contracts with customers. IFRS 15 Illustrative Examples [Scenarios] (a) Sale of GoodsIllustrations related to the sale of physical goods, such as the recognition … Read More
Equity Instruments IFRS 9 concept that STATES ‘Equity Investments’ to be measured at fair value in the Balance Sheet, with value changes recognized in Profit or Loss, EXCEPT for those equity investments for which the entity has elected to present value changes in OCI. Equity Instruments IFRS 9 – Accounting … Read More
Classification of Financial Assets IFRS 9 a concept that STATES Financial Assets are classified into Amortized Cost, Fair Value through Other Comprehensive Income, and Fair Value through Profit or Loss, EITHER as Debt Investment or Equity Investment. What is Financial Asset? IFRS 9 DEFINES Financial Asset as any asset that is: … Read More
Fair Value through Other Comprehensive Income STATES that ‘Financial Assets’ are classified and measured if they are held in a Business Model whose objective is achieved by BOTH collecting contractual cash flows and selling financial assets. IFRS 9 – Financial Assets at Fair Value through Other Comprehensive Income (FVOCI) 1. … Read More
‘Fair Value through Profit and Loss‘ MEANS that at each Balance Sheet date the asset or liability is re-measured to fair value and any movement in that fair value is taken directly to the Income Statement. Fair Value through Profit and Loss – Accounting (As Per IFRS 9) 1. Financial Asset … Read More
Financial Assets at Amortized Cost REFLECT the amount at which the asset or liability was measured upon initial recognition, MINUS principal repayments, plus or minus the cumulative amortization of any premium or discount, and MINUS any write-down for impairment. Financial Assets at Amortized Cost – Accounting As Per IFRS 9 … Read More