IFRS for SMEs | Annualreporting.info

Business Combinations and Goodwill

Introduction Business Combinations and Goodwill

19.1 Business Combinations and Goodwill applies to accounting for business combinations. It provides guidance on identifying the acquirer, measuring the cost of the business combination and allocating that cost to the assets acquired and liabilities and provisions for contingent liabilities assumed. It also addresses accounting for goodwill both at the time of a business combination and subsequently.

Business Combinations and Goodwill – Exceptions

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Disclosures in consolidated financial statements

Required disclosures in consolidated financial statements

9.22 The following disclosures shall be made in consolidated financial statements:

  1. the fact that the statements are consolidated financial statements;
  2. the basis for concluding that control exists when the parent does not own, directly or indirectly through subsidiaries, more than half of the voting power;
  3. any difference in the reporting date of the financial statements of the parent and its subsidiaries used in the preparation of the consolidated financial statements; and
  4. the nature and extent of any significant restrictions (for example resulting from borrowing arrangements or regulatory requirements) on the ability of subsidiaries to transfer funds to the parent in the form of cash dividends or to repay loans.
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Accounting Policies, Estimates and Errors

This is about guidance for selecting and applying the accounting policies used in preparing financial statements. As a result it also covers changes in accounting estimates and corrections of errors in prior period financial statements.

Selection and application of accounting policies

Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.

If Accounting Policies, Estimates and Errors specifically addresses a transaction, other event or condition, an entity shall apply these specific parts of Accounting Policies, Estimates and Errors. However, the entity need not follow a requirement in Accounting Policies, Estimates and Errors if the effect of doing so would not be material.

Management’s judgment in

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IAS 38 Intangible Assets other than Goodwill

Intangible Assets other than Goodwill

Introduction IAS 38 Intangible Assets other than Goodwill

18.1 Intangible Assets other than Goodwill applies to accounting for all intangible assets other than goodwill (see Business Combinations and Goodwill) and intangible assets held by an entity for sale in the ordinary course of business (see Inventories and Revenue).

Intangible Assets other than Goodwill – No physical substance

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Property, Plant and Equipment

Property, Plant and Equipment (PPE)

PPE – Introduction

17.1 Property, Plant and Equipment applies to accounting for property, plant and equipment and accounting for investment property whose fair value cannot be measured reliably without undue cost or effort on an ongoing basis. Investment Property applies to investment property whose fair value can be measured reliably without undue cost or effort.… Read more

Investment Property

Investment property – Introduction

16.1 Investment property applies to accounting for investments in land or buildings that meet the definition of investment property (See Definition and initial recognition of investment property – Owner and Lessee) and some property interests held by a lessee under an operating lease (see Definition and initial recognition of investment property – Lessee) that are treated like investment property. Only investment property whose fair value can be measured reliably without undue cost or effort on an ongoing basis is accounted for in accordance with this section at fair value through profit or loss. All other investment property is accounted for using the cost model in Property, Plant and Equipment and remains within the … Read more