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The purpose of these videos is to present IFRS clear, practical and dynamic, allowing learn and remember simply the main concepts of IFRS to apply efficiently as accounting professional. Our interactive tool allows you IFRS learn online Videos 365 days a year from your PC, mobile or tablet Content -More than 70 videos about the most complex IFRS, with all the theoretical and practical fundamentals taught didactically -More than 100 examples through case studies of real life situations (in Excel) -IFRS questionnaire -Bonus # 1: IFRS 1 day. KIT to learn IFRS in 1 day -Bonus # 2: KIT videos on how to prepare financial statements under IFRS -The videos are in English, but with a very simple...

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Practical Guide: Costs excluded from inventories IFRS fo SMEs

Costs excluded from inventories Paragraoh: 13.13 Examples of costs excluded from the cost of inventories and recognised as expenses in the period in which they are incurred are:(a) abnormal amounts of wasted materials, labour or other production costs.(b) storage costs, unless those costs are necessary during the production process before a further production stage.(c) administrative overheads that do not contribute to bringing inventories to their present location and condition.(d) selling costs. Example 1: An entity manufactures cotton sheeting. Total costs in each production run are CU100,000 including a cost of normal wastage of CU2,000. The weakening of operating controls while the owner-manager was away from the plant in hospital caused the wastage of raw materials to increase to CU7,000...

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ICAEW and IFRS Foundation announce IFRS 16 conference

ICAEW and IFRS Foundation announce IFRS 16 conference   The IFRS Foundation, along with the Institute of Chartered Accountants in England and Wales (ICAEW), will be hosting an IFRS conference on the implementation of IFRS 16 Leases, in London on 7 October 2016. The conference will cover topics on: -Implementation issues.  -IFRS 16 transition.  -Definition of a lease.  -Business implications.  -Disclosure requirements.  More information on the conference is available on the ICAEW website.

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Analysis of IFRS application by listed companies around the world

The IFRS Foundation has released an analysis of the number of listed companies using IFRSs around the world. The analysis combines information about the numbers of listed companies published on the websites of the two major global associations of securities exchanges: World Federation of Exchanges (WFE) and Federation of European and Asian Stock Exchanges (FEAS) with the information on the use of IFRSs around the world. The analysis concludes that of the approximately 48,000 domestic listed companies on the 85 major securities exchanges in the world more than 25,000 use IFRSs. Not surprisingly, of those domestic listed companies that do not use IFRSs, over 80 per cent are listed in China, India, Japan,...

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ICAEW and IFRS Foundation announce IFRS 16 conference

ICAEW and IFRS Foundation announce IFRS 16 conference   The IFRS Foundation, along with the Institute of Chartered Accountants in England and Wales (ICAEW), will be hosting an IFRS conference on the implementation of IFRS 16 Leases, in London on 7 October 2016. The conference will cover topics on: -Implementation issues.  -IFRS 16 transition.  -Definition of a lease.  -Business implications.  -Disclosure requirements.  More information on the conference is available on the ICAEW website.

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IASB posts webcast on IFRS 16 lessee measurement

As part of the IASB´s webcast series on IFRS 16 implementation, the IASB staff has made available a webcast discussing the measurement requirements for lessees in IFRS 16 ´Leases´. The webcast discusses the measurement of lease liabilities (lease term, variable lease payments, in-substance fixed lease payments, discount rate) and the measurement of right-of-use assets. The new webcast and all previous webcasts of the series available on the IFRS 16 implementation page on the IASB´s website.  

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Asuntos de IFRS Foundation Debrief de la NIIF 9

The IFRS Foundation has issued a new Debrief series video, From incurred to expected, two years to go. The video features IASB Board member Sue Lloyd as she discusses aspects of IFRS 9, which is set to be effective on 1 January 2018. Topics discussed in the video include Background information during IFRS 9 developed.   Effects IFRS 9 will have on the accounting for loan losses.   Information on work done since IFRS 9 was completed in 2014.   Implementation considerations for companies.   IFRS 9´s interaction with prudential regulations.   Connection between the work on EDTF and IFRS 9.   Next steps For more information, see the Debrief video on the IASB´s website.

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The International Accounting Standards Board (IASB) issued IFRS 16 Leases

The International Accounting Standards Board (IASB) issued IFRS 16 Leases in January 2016. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e. the customer (“lessee”) and the supplier (“lessor”). IFRS 16 is effective from 1 January 2019. A company1 can choose to apply IFRS 16 before that date but only if it also applies IFRS 15 Revenue from Contracts with Customers. IFRS 16 completes the IASB´s project to improve the financial reporting of leases. IFRS 16 replaces the previous leases Standard, IAS 17 Leases, and related Interpretations. Lessees All leases result in a company (the lessee) obtaining the right to...

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llustrative examples IFRS 13 Fair Value Measurement Unquoted equity instruments within the scope of IFRS 9 Financial Instruments

Illustrative examples IFRS 13 Fair Value Measurement Unquoted equity instruments within the scope of IFRS 9 Financial Instruments   IFRS 9 requires entities to measure all investments in equity instruments at fair value, even if those instruments are not quoted in an active market. This chapter focuses on measuring the fair value of individual unquoted equity instruments that constitute a non-controlling interest in an investee.  The guidance included in this chapter is appropriate for the measurement of such interests at initial recognition and subsequently and it should be considered within the context of materiality as defined in International Financial Reporting Standards (IFRSs). IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors stipulates that accounting policies in Standards need...

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IAS 40 Investment property: Fair value model - use basis for fair value

Investment property: Fair value model – use basis for fair value Fair value attributable to the building component of the property determined on the basis of redevelopment of the property Issue The fair value of investment property is usually its market value. The market value of an investment property is determined on the basis of the highest value, considering any use that is financially feasible, justifiable and reasonably probable. The "highest and best-use" value may result in a property`s fair value being determined on the basis of redevelopment of the site. Question Should management attribute any value to a building if the fair value of the property (land and building) is determined on the basis of redevelopment...

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IFRS Practical Guide: Accounting for finance leases - Lessee (IAS 17)

Accounting for finance leases - Lessee Background      1. The lease is non-cancellable and is initiated on 01/01/X1 for equipment with an expected useful life of five years.      2. Three payments are due to the lessor of the amount of 51,000 per year beginning 31/12/X1.  Included in the lease payments is a sum of 1,000, to be paid annually by the lessee for insurance.      3. The lessee guarantees a 10,000 residual value on 31/12/X3 to the lessor.      4. The lessor is willing to sell the asset to the lessee at the end of the lease term, on 31/12/X3 for 5,000.      5. Irrespective of the 10,000 residual value...

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IFRS for SMEs - Section 20 Leases Examples

Example 1: An entity holds a property that it owns to earn rentals and for capital appreciation. It enters into an agreement whereby it conveys to an independent third party in return for payment of CU1,000(1) per year the right to use the building for ten years. The arrangement is a lease—it is an agreement whereby the lessor (the entity) conveys to the lessee (the independent third party) in return for payment or a series of payments (payment of CU1,000 per year) the right to use an asset (the building) for an agreed period of time (ten years). Lessor`s perspective The property is an investment property. The measurement of the investment property is outside the scope of Section...

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IFRS practical Guide: IAS 36 Cash-generating unit - Definition and impairment recognition

IAS 36 defines a cash-generating unit as the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets. Example 1: Retail Store Chain Store X belongs to a retail store chain M. X makes all its retail purchases through M’s purchasing center.  Pricing, marketing, advertising and human resources pollicies (except for hiring X’s cashiers and salesman) are decided by M.  M also owns 5 other stores in the same city as X (although in different neighborhoods) and 20 other stores in other cities.  All stores are managed in the same way as X.  X and...

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FRS Practical Guide: IAS 23 Capitalisation of borrowing costs Examples

Example 1 A property developer acquires a property, which management intends to develop into luxury apartments. Alternatively, the property could be sold or leased immediately after its acquisition.  Should management’s intention be taken into account? Analysis Yes. Assessing whether an asset is a qualifying asset takes into consideration its intended use. The property is determined to be a qualifying asset because management intends to develop the asset over a substantial period of time. This is not changed by the fact that the property could alternatively be sold immediately. Example 2: A telecom company has acquired a 3G licence. The licence could be sold or licensed to a third party. However, management intends to use it...

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IFRS Practical Guide IFRIC 18 Transfers of Assets from Customers (examples)

IFRS Practical Guide IFRIC 18 Transfers of Assets from Customers (examples) Example 1: Electricity substation A real estate company is building a residential development in an area that is not connected to the electricity network. In order to have access to the electricity network, the real estate company is required to construct an electricity substation that is then transferred to the network company responsible for the transmission of electricity. It is assumed in this example that the network company concludes that the transferred substation meets the definition of an asset. The network company then uses the substation to connect each house of the residential development to its electricity network. In this case,...

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IFRS Practical Guide: IFRS 6 Exploration for and Evaluation of Mineral Resources specifies

Example 1: Is an entity required to capitalise exploration and evaluation expenditures? Entity A is a junior mining company that extracts gold deposits. After obtaining the rights to explore a prospective site, Entity A typically incurs significant costs relating to feasibility studies and sampling. Is Entity A required to recognise these costs as an asset under IFRS 6? No. IFRS 6 does not require entities to capitalise exploration and evaluation expenditures. Rather, when specified conditions are met, IFRS 6 permits entities to continue to apply the accounting policies followed with respect to the treatment of exploration and evaluation expenditure before adopting the Standard. Entity A`s policy may be to recognise expenditures relating to feasibility...

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IFRS FAQ - IAS 41 Agriculture Recognise a government grant (fair value)

IAS 41 Agriculture Recognise a government grant (fair value) An entity should recognise a government grant as income when, and only when, the conditions attaching to the grant are met if the grant relates to a biological asset measured at its fair value less estimated point-of-sale costs (IAS41.35). What are the conditions for recognising a government grant relating to biological assets measured at fair value? Example An entity is in the business of growing and selling rice. The costs of rice plantation activities are high, and the government has offered grants to growers as an incentive to remain in the industry and maintain the food supply. These grants will be given at the end...

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IFRS Foundation publishes first update to IFRS Taxonomy 2015

The IFRS Foundation has published Update 1 to the IFRS Taxonomy 2015. The taxonomy updates contain additional taxonomy concepts that reflect new IFRSs and improvements to IFRSs, technical updates, and corrections. This update includes taxonomy elements for the May 2015 final amendments to the IFRS for SMEs. For more information and access to the update, see the press release on the IASB´s Web site. December 3, 2015

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IAS 1 Presentation of loan from parent

Presentation of loan from parent Should a parent, in its single-entity financial statements, present amounts due from a subsidiary on the face of its balance sheet as an asset, and if so how should it be classified? Background An entity shall present further sub-classifications of the line items presented in the balance sheet. Those sub-classifications may be presented either on the face of the balance sheet or in the notes, classified in a manner appropriate to the entity`s operations [IAS1.77]. Example A parent provides a loan to a subsidiary. Interest of 8% is paid annually. There is no specified repayment date; however, the loan is payable on demand. Solutoin Disclosure on the face of the balance sheet...

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FASB proposes to clarify the definition of a business

The FASB has issued a proposed Accounting Standards Update, “Clarifying the Definition of a Business,” which is intended to help entities evaluate whether to account for transactions as acquisitions (or disposals) of assets or as businesses. As stated in the FASB´s press release, the proposal would provide a “more robust framework for determining when a set of assets and activities is a business. The framework would provide more consistency in the application of the guidance, reduce the costs of its application, and make the definition of a business more operable.” Comments on the proposal are due by January 22, 2016, For more information, see the press releaseSee more



IAS 1 Presentation of loan from parent

Presentation of loan from parent Should a parent, in its single-entity financial statements, present amounts due from a subsidiary on the face of its balance sheet as an asset, and if so how should it be classified? Background An entity shall present further sub-classifications of the line items presented in the balance sheet. Those sub-classifications may be presented either on the face of the balance sheet or in the notes, classified in a manner appropriate to the entity`s operations [IAS1.77]. Example A parent provides a loan to a subsidiary. Interest of 8% is paid annually. There is no specified repayment date; however, the loan is payable on demand. Solutoin Disclosure on the face of the balance sheet...

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IASB publishes IFRS for SMEs bound volume

The 2015 IFRS for SMEs bound volume is the official printed edition of the IASB´s International Financial Reporting Standard for Small and Medium sized Entities (IFRS for SMEs). It incorporates the May 2015 amendments to the IFRS for SMEs. In the bound volume, the IFRS for SMEs is presented in two volumes: Part A contains the IFRS for SMEs standard and a derivation table and Part B contains the basis for conclusions and illustrative financial statements.   December 1, 2015

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IFRS Practical Guide - IAS 18 Revenue Examples

IAS 18 Revenue The primary issue in accounting for revenue is determining when to recognise revenue. Revenue is recognized when it is probable that future economic benefits will flow to the entity Tand these benefits can be measured reliably. This Standard identifies the circumstances in which these criteria will be met and, therefore, revenue will be recognised. It also provides practical guidance on the application of these criteria.   Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants.   This Standard shall be applied in accounting...

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IASB proposes amendments to IAS 40 on transfers of investment property

The International Accounting Standards Board (IASB) has published an Exposure Draft (ED) of proposed amendments to IAS 40 Investment Property. The amendments address transfers of investment property. Comments are requested by 18 March 2016. Background The IFRS Interpretations Committee received a request for clarification of the application of paragraph 57 of IAS 40 Investment Property, which provides guidance on transfers to, or from, investment properties. More specifically, the question was whether a property under construction or development that was previously classified as inventory could be transferred to investment property when there was an evident change in use. The Interpretations Committee referred the matter to the IASB, and at its April 2015 meeting, the IASB tentatively agreed...

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Abu Dhabi leads the way in adopting sustainable accounting standards

Abu Dhabi leads the way in adopting sustainable accounting standards From “The National - Business” Thanks to policymakers, Abu Dhabi´s economy has evolved beyond recognition in the past half-century and is well-positioned for continued growth. At the core of the emirate´s success is its sustainable development plan: Economic Vision 2030, a long-term road map for economic progress and high quality public services. A critical component underpinning the emirate´s long-term success is the modernization of its public sector financial management. Enhancing public financial management, including improved accounting and reporting arrangements, is essential to supporting more effective and efficient public services, increasing economic growth and minimizing the incidence of fraud and corruption. Earlier this year, Sheikh...

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IASB publishes update on the definition of a lease

The IASB staff have published a short project update providing an overview of how a lease will be defined in the IASB´s new standard on leases. It also includes a working draft of the application guidance and accompanying illustrative examples to be included in the forthcoming standard on the definition of a lease. The staff are providing the update to help stakeholders prepare for the implementation of the new standard. They point out that it is likely that the first step to be undertaken in implementing the standard will be to determine the population of contracts to which the standard applies which will be determined by the definition of a lease....

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IAS 37 Recognition of a liability for expenditure that is contingent on a future event

Recognition  of a liability  for  expenditure  that  is contingent on a future event Background An obligating event is an event that creates a legal or constructive obligation that results in an entity having no realistic alternative to settling that obligation [IAS37.10]. Example An entity intends to alter the terms and conditions of employment at one plant so that overtime will be paid at one-and-a-half times the normal rate, rather than twice the normal rate, as in the past.  The entity intends to compensate employees in advance with a one-off payment and has put this offer to the union. No agreement has been reached with the union at year-end. The entity is likely to switch overtime...

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IAS 21 - Examples of monetary items

Background Under IAS 21, foreign currency monetary items are treated differently from foreign currency non-monetary items. The essential feature of a monetary item is the right to receive (or the obligation to deliver) a fixed or determinable number of units of currency. Conversely, a non-monetary item does not carry this right or obligation.   Question What are common examples of monetary and non-monetary items?   Answer The following table lists a number of the most common monetary and non-monetary items.    Monetary items Cash Bank balances and loans Deposits Employee benefit liability Accrued expenses Trade payables Taxation Debt securities Trade receivables Allowance for doubtful debts (because trade receivables are monetary) Notes and other receivables Notes and other payables Holiday pay provision Deferred tax assets/liabilities Payables under finance leases   Non-monetary items Property, plant and equipment Intangible assets Goodwill Shareholders´ equity Prepaid...

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IPSASB publishes two exposure drafts

The International Public Sector Accounting Standards Board (IPSASB) has released for comment two Exposure Drafts (EDs): ED 57 ´Impairment of Revalued Assets´ and ED ´Improvements to IPSASs 2015.´ ED 57 Impairment of Revalued Assets proposes to bring property, plant and equipment, and intangible assets on the revaluation model within the scope of IPSAS 21 Impairment of Non-Cash-Generating Assets and IPSAS 26 Impairment of Cash-Generating Assets. This intended to provide users with relevant information on impairments to these assets. The ED also proposes to clarify that an impairment to one or more individual assets within a class of property, plant, and equipment does not necessitate a revaluation of the entire class to which that impaired asset belongs. ED 58 Improvements to...

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IFRS for SMEs: Revenue Recognition - Rendering of services

IFRS for SMEs: Revenue Recognition - Rendering of services When the outcome of a transaction involving the rendering of services can be estimated reliably, an entity shall recognise revenue associated with the transaction by reference to the stage of completion of the transaction at the end of the reporting period (sometimes referred to as the percentage of completion method). The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: (a) the amount of revenue can be measured reliably. (b) it is probable that the economic benefits associated with the transaction will flow to the entity. (c) the stage of completion of the transaction at the end of the reporting period...

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