Day: April 1, 2021

1 IFRS 1: First time adoption of International Financial Reporting Standards     Adoption of International Financial Reporting Standards   Although not as significant as they once were, differences remain between IFRS Standards and national standards. Therefore, there is an Read More …

1 The need for disclosure of related parties   A related party transaction is defined as ‘the transfer of resources, services or obligations between related parties, regardless of whether a price is charged’ (IAS 24, para 6).   Transactions between Read More …

Defining reportable segments     Introduction   Segmental reports are designed to reveal significant information that might otherwise be hidden by the process of presenting a single statement of profit or loss and other comprehensive income and statement of financial Read More …

1 Basic principles of tax   Taxation   Taxation is a major expense for business entities. IAS 12 Income Taxes notes that there are two elements to tax that an entity must deal with:   Current tax – the amount Read More …

Introduction   Definitions   A financial instrument is ‘any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity’ (IAS 32, para 11).   A financial asset is any Read More …

IAS 10 Events after the reporting period   Definition   Events after the reporting period ‘are those events, both favourable and unfavourable, that occur between the reporting date and the date on which the financial statements are authorised for issue’ Read More …

Share-based payment   Introduction   Share-based payment has become increasingly common. Share-based payment occurs when an entity buys goods or services from other parties (such as employees or suppliers) and:   settles the amounts payable by issuing shares or share Read More …

1 Introduction   Types of employee benefit   IAS 19 identifies four types of employee benefit as follows:   Post-employment benefits. This normally relates to retirement   Short-term . This includes wages and salaries, bonuses and other benefits.   Termination Read More …

Leases: definitions   IFRS 16 Leases provides the following definitions:   A lease is a contract, or part of a contract, that conveys the right to use an underlying asset for a period of time in exchange for consideration.   Read More …

1 IAS 21 The effects of changes in foreign exchange rates   IAS 21 deals with:   the definition of functional and presentation currencies   accounting for individual transactions in a foreign currency   translating the financial statements of a Read More …