‘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

Financial Liabilities at Amortized Cost are accounted for i.e. the liability’s Effective Rate of Interest is CHARGED as a finance cost to the Profit or Loss (not the interest paid in cash) and changes in Market Rate of interest are IGNORED – i.e. the liability is not revalued at the reporting date. … Read More

Financial Liability Definition DEFINES Financial Liability any liability that is Contractual Obligation to DELIVER cash/another financial asset or to EXCHANGE financial assets/financial liabilities, Contract that will or May-be settled in entity’s own equity instruments. Financial Liability Definition IFRS 9 Financial Instruments specifies how an entity should CLASSIFY and MEASURE Financial Assets, Financial liabilities, and Contracts … Read More

Financial Asset Definition IFRS 9 DEFINES Financial Asset any asset that is Cash, Equity Instrument of another entity, Contractual Right to RECEIVE cash/another financial asset or to EXCHANGE financial assets/financial liabilities, Contract that will or May-be settled in entity’s own equity instruments. Financial Asset Definition IFRS 9 IFRS 9 Financial … Read More

Deferred Revenue IFRS 15, i.e. unearned revenue or customer prepayments, arises when a Co. receives payment from a customer before it has FULFILLED its performance obligations. Deferred Revenue IFRS 15 – Background IFRS 15 [Revenue from Contracts with Customers] PROVIDES guidance on Recognizing, Measuring and Disclosing revenue presented the concept … Read More

What does Hedge Mean STATES that ‘Hedge’ refers to a Strategic Position or Investment undertaken to OFFSET potential losses or risks incurred from another investment. The primary objective of hedging is to MINIMIZE the impact of adverse market movements or unforeseen events on one’s portfolio. What does Hedge Mean? 1. … Read More

What is Hedging in Trading STATES that ‘Hedging‘ is a Risk Management Technique that aims to PROTECT investments against adverse price movements. It INVOLVES a trade that acts as Insurance against potential losses in an existing position, thereby traders aim to limit their exposure to risk, stabilize their portfolios. What … Read More

What is the Difference between Assets and Liabilities a concept that STATES ‘Assets’ as Economic Resources owned or controlled by an entity to provide future benefits, AND ‘Liabilities’ represent the Obligations or Debts owed by an entity to external parties. Assets (As Per IAS 1) Assets can be DEFINED as … Read More

Reversal of Impairment Loss is INCREASING the value of a previously impaired asset when there is a change in circumstances indicating that the impairment loss is no longer necessary. What is Impairment? (As Per IAS 36) Impairment OCCURS when the carrying amount of an asset, such as property, plant, equipment, … Read More