What Is Fintech reporting IFRS 15

What Is Fintech or Financial Technology And Its Benefits?

New and fast-growing technologies like Financial Technology or Fintech have the potential benefits to collect and process data in real-time. This transforms how all businesses are working, how products and services are creating in the new economy, and how customers are engaging in this process. Every professional and commercial industry is affecting due by this change in workflows and business processes. The financial and economic sector is no exception.

Financial Technology or Fintech?

Fintech, short for Financial Technology, is a growing field and is now an economic revolution by the tech-savvy. It is the development of new technology to transform traditional institutions such as banks and insurance companies by uplift how they handle their finances and economic services. The process is not only digitizing money but also monetizing data to fit into the digitized world.

FinTech solutions have huge potential benefits for all businesses, especially new and existing small businesses. Small and medium-sized enterprises (SMEs) are essential for economic maturity and employment. However, others may find it difficult to get the financing they need to survive and thrive.

Example

Automated drafting of portfolio management commentaries – Analytics & Reporting (October 2018, Societe Generale Securities Services)

Addventa Fintech exclusive partnership for automated drafting of portfolio management commentaries based on artificial intelligence solutions.

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IFRS 9 Assume obligation to pay cash flow

IFRS 9 Assume obligation to pay cash flow

IFRS 9 Assume obligation to pay cash flow was the first part of Step 4 of the below decision tree. Now you are in the second part of Step 4,

IFRS 9 Assume obligation to pay cash flow is part of a decision model for the derecognition of financial assets. The derecognition can be a full derecognition, a full continued recognition, a full derecognition with recognition of new assets or liabilities retained or a continued involvement. The model is starting here. Derecognition of financial assets IFRS 9 Assume obligation to pay cash flow

The principles from IAS 39 for recognition and derecognition of financial assets/liabilities were carried forward to IFRS 9. However, … Read more

Better IFRS 9 Retain control of the asset

IFRS 9 Retain control of the asset

IFRS 9 Retain control of the asset is the next step in the derecognition decision tree depicted below, after deciding in Step 5 that the entity has NOT transferred substantially all risk and rewards for the asset.

IFRS 9 Retain control of the asset IFRS 9 Retain control of the assetis part of a decision model for the derecognition of financial assets. The derecognition can be a full derecognition, a full continued recognition, a full derecognition with recognition of new assets or liabilities retained or a continued involvement. The model is starting here. Derecognition of financial assets. IFRS 9 Retain control of the asset IFRS 9 Retain control of the asset

The … Read more

IFRS 9 Retain all risks and rewards

IFRS 9 Retain all risks and rewards is part of a decision model for the derecognition of financial assets. The derecognition can be a full derecognition, a full continued recognition, a full derecognition with recognition of new assets or liabilities retained or a continued involvement. The model is starting here. Derecognition of financial assets IFRS 9 Retain all risks and rewards IFRS 9 Retain all risks and rewards

Step 5 Has the entity retained substantially all risks and rewards? [IFRS 9 3.2.6(b)]

If this comparison demonstrates that the entity’s exposure to the variability in the present value of the future net cash flows (discounted at the appropriate current market interest rate) from the financial asset does not change Read more

IFRS 9 Transfer all risks and rewards at Best

IFRS 9 Transfer all risks and rewards

You have arrived here by going through the derecognition decision tree (see below), by deciding in Step 4 that the the entity has NOT transferred its rights receive the cash flows from. You are now in the combined Step 5 in the derecognition decision tree (see below), part one (see question below).

IFRS 9 Transfer all risks and rewards is part of a decision model for the derecognition of financial assets. The derecognition can be a full derecognition, a full continued recognition, a full derecognition with recognition of new assets or liabilities retained or a continued involvement. The model is starting here >>>>  Derecognition of financial assets

The principles from IAS 39 for … Read more

IFRS 9 Transfer right to receive cash flows

IFRS 9 Transfer right to receive cash flows

IFRS 9 Transfer right to receive cash flows is a decision point after having gone through Step 1, Step 2 and Step 3 of the below decision tree. After consolidation all investments (Step 1) and decide on on the (group of, part of or all) assets (Step 2), it has been considered that the rights to the cash flows from the asset have not expired (Step 3), so we end up in Step 4 (see below).

IFRS 9 Transfer right to receive cash flows is part of a decision model for the derecognition of financial assets. The derecognition can be a full derecognition, a full continued recognition, a full derecognition with recognition Read more

IFRS 9 Financial assets continued involvement at best

IFRS 9 Financial assets continued involvement

IFRS 9 Financial assets continued involvement is the end position after deciding in Step 6 that the entity retained control of the asset in the derecognition decision tree (see below). The accounting is discussed further below.

IFRS 9 Financial assets continued involvement is part of a decision model for the derecognition of financial assets. The derecognition can be a full derecognition, a full continued recognition, a full derecognition with recognition of new assets or liabilities retained or a continued involvement. The model is starting here Derecognition of financial assets.

The principles from IAS 39 for recognition and derecognition of financial assets/liabilities were carried forward to IFRS 9. However, IFRS 9 explicitly states that … Read more

Full derecognition with new assets liabilities best of 1

Full derecognition with new assets liabilities

Full derecognition with new assets liabilities is the ending of the derecognition decision tree in IFRS 9. It was decided in step 6 that the entity has NOT retained control of the asset.

The action to be accounted for is:

Full derecognition of a financial asset and continued recognition of liabilities retained (plus some new assets as consideration received)

An entity that derecognises a financial asset in its entirety includes the difference between the carrying amount of the asset less carrying amount of liabilities retained and the consideration received (including any cumulative gain or loss that had been recognised directly in equity through other comprehensive income i.e. recycling) in the income statement (profit or

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IFRS 9 Continue to recognise the financial asset at best

IFRS 9 Continue to recognise the financial asset

IFRS 9 Continue to recognise the financial asset is the ending point after having gone through Step 4 part 1 and part 2 of the below decision tree. After deciding the entity has NOT transferred its rights to receive the cash flows from the assets and also deciding the entity has NOT assumed an obligation to pay the cash flows from the asset, the entity cintinues to recognise the asset.

IFRS 9 Continue to recognise the financial asset is part of a decision model for the derecognition of financial assets. The derecognition can be a full derecognition, a full continued recognition, a full derecognition with recognition of new assets or liabilities retained Read more

IFRS 9 Full derecognition of financial assets

IFRS 9 Full derecognition of financial assets

IFRS 9 Full derecognition of financial assets is the ending point after having decided in Step 5 of the below decision tree, that the entity has transferred substantially all risks and rewards for the asset.

The action to be accounted for is:

Full derecognition of a financial asset

An entity that derecognises a financial asset in its entirety includes the difference between the carrying amount of the asset and the consideration received (including any cumulative gain or loss that had been recognised directly in equity through other comprehensive income i.e. recycling) in the income statement (profit or loss).

This page is part of a decision model for the derecognition of financial assets. The Read more