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Contingent Liabilities are potential OBLIGATIONS that may or may not come into existence, depending on the occurrence or non-occurrence of one or more future events that are not entirely within the control of the entity. They are often referred to as “Off-Balance Sheet” items because they are not reflected in … Read More
A Contingent Asset is a potential asset that may only be REALIZED if a certain condition is met. i.e, it is an asset that only has VALUE if a specific event occurs. This event can be internal to a company or external, such as changes in market conditions. Contingent Asset … Read More
IAS 37 OUTLINES the accounting for provisions (liabilities of uncertain timing or amount), together with contingent assets (possible assets) and contingent liabilities (possible obligations and present obligations that are not probable or not reliably measurable). IAS 37 – Provisions A liability of UNCERTAIN timing or amount. Provisions are RECOGNIZED when all … Read More
SIC 32 concludes that a WEBSITE developed by an entity using internal expenditure, whether for ‘internal or external access’, is an internally generated intangible asset as per IAS 38. SIC 32 Website Costs 1. Issue When ‘accounting for internal expenditure‘ on the development and operation of the entity’s own website for … Read More
IAS 38 STATES the ‘accounting criteria‘ for intangible assets, which are non-monetary assets that are without physical substance and identifiable (EITHER being separable or arising from contractual or other legal rights). IAS 38 – Intangible Assets An Intangible Asset is (a) Identifiable; (b) Non-Monetary Asset; AND (c) Without Physical Substance An … Read More
IAS 20 PRESCRIBES the ‘accounting‘ for and ‘disclosure‘ of government grants and other forms of government assistance. IAS 20 – Key Terms 1. Government Grant Assistance by the government in the form of transfer of resources to the entity in return for past or future compliance with certain conditions relating … Read More
Diluted Earnings Per Share (diluted EPS) CALCULATES a company’s earnings per share if all convertible securities were converted. Diluted Earnings Per Share (EPS) Diluted EPS INCLUDES dilutive potential ordinary shares (such as options and convertible instruments) on fulfillment of certain criteria. Except for Basic EPS, an entity should also DISCLOSE diluted EPS. Diluted … Read More
IFRIC 14 interprets the LIMIT on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. IFRIC 14 Effective Date An entity shall apply this Interpretation for annual periods beginning on or after 1 January 2008. Earlier application is ‘PERMITTED’. IFRIC 14 – Scope This Interpretation applies to all post‑employment … Read More
The ‘OBJECTIVE‘ of IAS 19 is to prescribe the accounting and disclosure for employee benefits. IAS 19 requires an entity to RECOGNIZE: IAS 19 Effective Date An entity shall apply this Standard for annual periods beginning on or after 1 January 2013. Earlier application is ‘PERMITTED’. If an entity applies this … Read More
IFRIC 1 applies to changes in the MEASUREMENT of any existing ‘decommissioning, restoration or similar liability‘ that is both: IFRIC 1 Effective Date An entity shall apply this Interpretation for annual periods beginning on or after 1 September 2004. Earlier application is ‘ENCOURAGED’. If an entity applies the Interpretation for … Read More