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IFRS 16 summary
ias 37 provisions examples
example of accounting policy
ias 40 practical examples
Actuarial gains and losses under IAS 19
Cash and cash equivalent and restricted cash on balance sheet
carrying amount of an asset
Non-current assets list
Current assets list IFRS
Associate in ifrs
Exchange assets accounting recognition
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IAS 10 – Events after the Reporting Period – summary and examples
August 10, 2022
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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
IFRS 16 summary
August 4, 2022
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In this summary of IFRS 16, we will carry out a detailed analysis of this standard. We will see the most relevant aspects of the accounting recognition of a right of use asset and the liability associated with a lease
ias 37 provisions examples
August 1, 2022
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In this post, we will see a series of examples of provisions under IAS 37. These examples include legal provisions, implicit, recognition of a provision by enacting a law, provisions with a wide range of likely outcomes, and provisions with
example of accounting policy
July 31, 2022
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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. You can leave me your email
ias 40 practical examples
July 30, 2022
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Today we will talk about investment properties and carry out a series of practical examples where we will refer to IAS 40, IAS 16, and IFRS 16. An investment property is a land or a building or part of a
Actuarial gains and losses under IAS 19
May 26, 2022
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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 equivalent and restricted cash on balance sheet
May 25, 2022
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Cash and cash equivalents are held to meet short-term payment commitments rather than for investment or similar purposes. Two requirements are necessary for an asset to meet the definition of a cash equivalent. On the one hand, it must be
carrying amount of an asset
May 23, 2022
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The carrying amount is different from fair value and value in use. On the one hand, fair value is the price that an entity would receive to sell an asset or pay a company to transfer a liability in an
Non-current assets list
November 30, 2021
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In this post, we will show a series of non-current assets. Paragraph 66 of IAS 1 sets out requirements to identify a current asset. All those assets that do not have these characteristics will be classified as non-current. Let’s remember
Current assets list IFRS
November 29, 2021
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Below you will find a list of current assets according to IFRS. Remember that paragraph 66 of IAS 1 set out that an entity will classify an asset as current when: It expects to realize the asset in its normal
Associate in ifrs
November 25, 2021
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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
Exchange assets accounting recognition
November 24, 2021
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Exchange assets : are the exchange of one or more non-monetary assets or a combination of monetary and non-monetary assets. In this article, we will refer to non-monetary assets. The following diagram shows how should be recognized these assets. It
Acquiree definition in ifrs
November 24, 2021
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An acquiree is one or more businesses controlled by an acquirer in a business combination. For example, company A acquires 90% of the interest of entity B. In this case, entity A is known as the acquired company, and entity
Deemed cost in IFRS
November 22, 2021
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The deemed cost, is a substitute cost used in recognition of property plant and equipment, or intangible assets, in the adoption of international financial reporting standards for the first time. That is, when an entity has its accounting under the
Business combination example
November 20, 2021
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In the following article, we will make a practical example of a business combination. With the help of this example, you will quickly understand the acquirer method set out in IFRS 3. The acquire method is composed of the following
Formula to calculate the recoverable amount
November 18, 2021
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The formula to calculate the recoverable amount is: Depreciable amount = the higher of fair value and value in use. The recoverable amount is used to determine whether an asset or group of assets is impaired. In other words, if
ifrs 16 illustrative examples
November 15, 2021
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The following post shows a series of illustrative examples related to IFRS 16. If you want to get this exercise in Excel, you can request the following email: info@ifrsmeaning.com Illustrative examples 1 : IFRS 16 initial recognition: An entity leases
Accounting recognition of equity method
November 11, 2021
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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
November 10, 2021
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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.
Accounting recognition of spare parts under IFRS
November 8, 2021
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Spare parts under IFRS are generally recognized as inventories. However, if the entity expects these spare parts to be used for more than the accounting period, and the economic benefits of these assets are expected to flow to the entity,
Accounting recognition of research and development expenditures in IAS 38
July 8, 2021
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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
ifrs 16 right of use asset
July 5, 2021
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Right of use asset in IFRS 16 is an asset that represents a right for a lessee to use an underlying asset during the term of the lease. As we can see in the previous paragraph, we only refer to
Change in accounting estimate recognition
June 25, 2021
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Changes in accounting estimates occur when an entity, as a result of new information, is forced to make a new valuation of it’s estimated liabilities. An accounting estimate is a calculation that a company performs on events that will occur
Decommissioning costs provision meaning
May 15, 2021
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The provision or costs for decommissioning is an estimate a company makes to determine the disbursements it must make in the future to restore a site or land. Many entities that need to develop a specific economic activity incur a series
Impairment of receivables
May 12, 2021
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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
IFRS 2 summary and illustrative examples
May 6, 2021
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This article will make an IFRS 2 summary and a series of illustrative examples to easily understand this standard. Share-based payments are a consideration an entity makes to a third party or an employee for the giving up of goods and services
Depreciation methods used in IFRS
May 1, 2021
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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
How the impairment of assets held for sale is calculated
April 30, 2021
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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
¿How is the goodwill impairment loss recognized?
April 1, 2021
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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
Rebates and discounts IFRS 15 and IAS 2
March 30, 2021
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This article refers to discounts for inventory sales regulated in IFRS 15 and discounts for inventory purchases under IAS 2. IFRS 15 radically changed how the revenue from ordinary activities should be recognized Discounts under IFRS 15 are recognized as
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