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. The ‘objective‘ of IFRS 2 is to SPECIFY the financial reporting by an entity when it undertakes a share-based payment transaction. IFRS … Read More
IFRIC 19 STATES that the De-Recognition of ‘financial liabilities‘ takes place when it is extinguished i.e. when the obligation specified in the contract is discharged or canceled or expired. IFRIC 19 Effective Date An entity shall apply this Interpretation (IFRIC) for annual periods beginning on or after 1 July 2010. Earlier … Read More
Derecognition of Financial Assets as per IFRS 9 STATES that a ‘trade receivable should be de-recognized when an entity collects payment‘. The collection of payment signifies the end of any exposure to risks or any continuing involvement. Derecognition of Financial Assets – Introduction An entity shall DERECOGNIZE a Financial Asset … Read More
IFRS 16 Sub-Lease DEPICTS that such transaction is accounted for by the sub-lessor in the same way as other leases. Under IFRS 16 the head lease and sublease are SEPARATE contracts that are accounted for under the ‘Lessee and Lessor Models‘. The sub-lease is classified by reference to the Right … Read More
IFRS 16 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 … Read More
IFRS 16 Lessor Accounting DESCRIBES that lessors account for finance leases by initially de-recognizing the asset and recognizing a receivable for the net investment in the lease. Initial direct costs (other than those incurred by a Manufacturer/(Dealer) lessor) are INCLUDED in the ‘Net Investment in the Lease’. IFRS 16 Lessor Accounting … Read More
Lessee Accounting a concept that DEPICTS the way by which a company records the financial impacts of its leasing activities. As per IFRS 16, Lessees recognize ‘Right of Use’ Asset (RoU) and ‘Lease Liability’, reflecting the present value (PV) of future lease payments. IFRS 16 (Leases) – Objective The ‘objective‘of … Read More