Learn IFRS Easy and Fast
Learn IFRS Easy and Fast
The international financial reporting standards course will allow you to take your professional career to the next level.
Below we will summarize IAS 10 – Events after the Reporting Period with examples and practical cases. IAS 10 refers to the accounting treatment that an entity must carry out on economic events arising after the reporting period and before
An accounting policy is a series of specific principles, bases, conventions, rules, and procedures adopted by an entity to prepare and present its financial statements. Below, we will show several examples of accounting policies. Example of accounting policy Property plant
A defined benefit plan’s actuarial gains or losses will be recognized in other comprehensive income under IAS 19. IAS 19 contemplates four types of employee benefits: Short-term benefits. Long-term benefits. Post-employment benefits. Termination benefits. Actuarial calculations are used in post-employment
Cash and cash equivalents are held to meet short-term payment commitments and not for investment or similar aspects. Two requirements are necessary for an asset to meet the definition of a cash equivalent. On the one hand, it must be
An associate in ifrs is an entity over which another company exercises significant influence. Significant influence is the power to participate in an associate entity’s financial and operating policy decisions without having control or joint control. An entity may exercise
The equity method of accounting is used in international financial reporting standards to recognize an investment in an entity that has significant influence over another company. The accounting recognition, when the equity method is used, consists of the initial recognition of an
Contingent consideration in business combination is an obligation assumed by the acquiring entity to transfer additional assets or equity participation to the acquired entity on the condition that this entity achieves specific objectives, such as an increase in sales or productivity.
Research and development expenses related to intangible assets, are regulated in paragraph 52 of IAS 38. This paragraph is established that all research expenses associated with the generation of an intangible, must be recognized in results. As for development expenses
To analyze the impairment of accounts receivable, it’s necessary to keep in mind a concept known as expected credit losses; this concept incorporated in the IFRS 9 refers to the losses that come from events previous to default in payment on a financial instrument. The accounts receivable
In IAS 16, specifically in paragraph 62, the depreciation methods IFRS in force to date are set out; among these are the straight-line method, the diminishing balance method, and the units of production method. The straight-line method This method is based on the cost of a property plant and equipment
Non-current assets held for sale accounting recognition are regulated in IFRS 5. This standard determines that the assets can be analyzed and classified as held for sale individually or jointly. That is, an entity can make available a business line
An impairment loss on the goodwill generated in a business combination occurs when a cash-generating unit carrying amount exceeds its recoverable amount. In this sense, said impairment generated must first be attributed to the goodwill. If remaining impairment exists, this