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

The One difference amongst Many of IFRS 9 Vs IAS 39 STATES that the key difference is in relation to the approach to ‘IMPAIRMENT’. IFRS 9 uses ‘Expected Credit Losses‘ (ECLs) to recognize impairment losses on financial assets, as compared to IAS 39 ‘Incurred Losses‘. Financial Reporting Standards · Comparative … Read More

IFRS 9 INTRODUCED the concept of Fair Value through Profit or Loss (FVPL). This classification APPLIES to financial instruments that are held for trading purposes and those that are designated at fair value through profit or loss. IFRS 9 · Financial Instruments · Accounting Standards Standard IFRS 9 Effective Date … Read More

IFRS 9 EXPLAINS the concept of FVOCI and its SIGNIFICANCE and requires to RECOGNIZE changes in Fair Value through Other Comprehensive Income rather than in Profit or Loss (P&L). IFRS 9 · Financial Instruments 3 Classification Categories IFRS 9 Governing Standard OCI Gains Reported Here Contents What Is FVOCI? Formal … Read More