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Derecognition of a financial asset

Only derecognition of a financial assets when either

An entity shall derecognise a financial asset only when either:

  1. the contractual rights to the cash flows from the financial asset expire or are settled;
  2. the entity transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or
  3. the entity, despite having retained some significant risks and rewards of ownership, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer—in this case, the entity shall:
    1. derecognise the asset; and
    2. recognise separately any rights and obligations retained or created in the transfer.

...continue reading "Basic Financial Instruments 4"

Initial recognition of financial assets and liabilities

Recognition of a financial asset or a financial liability

An entity shall recognise a financial asset or a financial liability only when the entity becomes a party to the contractual provisions of the instrument. ...continue reading "Basic Financial Instruments 2"

In short an overview

Measurement is the process of determining the monetary amounts at which an entity measures assets, liabilities, income and expenses in its financial statements. Measurement involves the selection of a basis of measurement. IFRS in summary specifies which measurement basis an entity shall use for many types of assets, liabilities, income and expenses. ...continue reading "Measurement of Assets, Liabilities, Income and Expenses"

In short an overview

Recognition is the process of incorporating in the financial statements an item that meets the definition of an asset, liability, income or expense and satisfies the following criteria:

  1. it is probable that any future economic benefit associated with the item will flow to or from the entity, and
  2. the item has a cost or value that can be measured reliably.

...continue reading "Recognition of Assets, Liabilities, Income and Expenses"

The Objective of General Purpose Financial Reporting is the basis of the Conceptual Framework.

In addition the 2018 revised Conceptual Framework sets out:

...continue reading "The Objective of General Purpose Financial Reporting"