Basic Financial Instruments 4

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
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Measurement of Assets, Liabilities, Income and Expenses

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

Recognition 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.
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The Objective of General Purpose Financial Reporting

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

In addition the 2018 revised Conceptual Framework sets out:

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