Here are 5 Comprehensive cash flow accounting events with special presentation and/or disclosure requirements under IAS 7. They are:
1 IFRS 9 Classification of cash flows arising from a derivative used in an economic hedge
Consequential amendments were not made to IAS 7 as a result of the introduction of, and subsequent changes to, IFRS 9 Financial Instruments.
A related issue which often arises in practice is the classification of cash flows that arise from a derivative that, although used economically to hedge exposures, is not designated in an IFRS 9 qualifying hedge relationship. The same issue arises under IAS 39, for those insurers that meet the criteria for, and have chosen to apply, the temporary exemption … Read more
IFRS 7 Complete Maturity analysis disclosure – IFRS 7 requires certain disclosures to be presented by category of an instrument based on the IFRS 9 recognition and measurement categories of financial instruments.
Certain other disclosures are required by class of financial instrument. For those disclosures an entity must group its financial instruments into classes of similar instruments as appropriate to the nature of the information presented. [IFRS 7 6]
The two main categories of disclosures required by IFRS 7 are:
information about the significance of financial instruments [IFRS 7 7 – 30]
information about the nature and extent of risks arising from financial instruments [IFRS 7 31 – 42]
Completely understand 1 consolidated and 2 separate financial statements is a summary of the requirements of IFRS 10 Consolidated financial statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint ventures and IAS 27 Separate financial statements.
Major topics discussed are:
The single control model in IFRS 10 that applies to all entities (including ‘structured entities’ or ‘variable interest entities’ as they are referred to in US GAAP). The changes introduced by IFRS 10 require continuous management to exercise significant judgement to determine which entities are controlled, and therefore are required to be consolidated by a parent. IFRS 10 may periodically change which entities are
Investments in Joint Ventures Overview that is what this is……
An entity with joint control of an investee shall account for its investment in a joint venture using the equity method except when that investment qualifies for exemption in IAS 28. Investments in Joint Ventures Overview
The exemptions include:Investments in Joint Ventures Overview
It is not really necessary to define financial statements, but because IFRS is the frame within which IFRS statements are prepared and because there are quite a few different definitions within IFRS relating to and specifying types of financial statements here a those definitions and some other sorted remarks and explanations.
Financial statements – are a structured representation of the financial position and financial performance of an entity. The objective of these accounts is to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions. These accounts to a certain extent also show the results of the management’s stewardship of … Read more
Accounting treatment acquisition of a business or assets – An entity has to determine whether a transaction or other event is a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the assets acquired are not a business, the reporting entity shall account for the transaction or other event as an asset acquisition.
“The ability to use power to affect the returns” means that an investor controls an investee not only if (s)he has power and exposure to its returns but also the ability to use its power to affect these returns. If not, an investor which has decision-making rights with regard to an investee but which cannot influence the investee’s returns will be considered an “agent” – and not the “principal” that is in control of the investee. [IFRS 10 17 Link between power and returns]
Summarised: Ability to use power to affect the returns
the definition reflects the fact that IFRS 10 applies to special purpose or structured entities as well as more conventional entities