applying paragraphs 11 and 12 of IAS 8 to its accounting policies for the recognition and measurement of exploration and evaluation assets – an entity does not have to consider the applicability of similar and related IFRS standards or the recognition and measurement criteria of the Conceptual ...
IFRS 16 Leases prescribes a single lessee accounting model that requires the recognition of asset and corresponding liability for all leases with terms over 12 months unless the underlying asset is of low value. Lessors apply a two-model approach. ...
The five-step model for revenue recognition under IFRS 15 Step 1: Identify the contract with a customer A contract is an agreement between two or more parties that creates enforceable rights and obligations. For revenue recognition, a contract must meet certain criteria, such as both parties appr...
Deciding whether the SPPI criterion is met will require assessment of contractual provisions that do or may change the timing or amount of contractual cash flows – e.g. prepayment features. Observation – Classification of financial assets – order of application of criteria While developing the...
Timing of recognition Revenues recognised at delivery (unchanged) Revenues recognised at delivery Assessment of provision for onerous contracts remains on a per contract basis Key Elements Scope Revenues ▪ Limited number of aircraft impacted: consideration only applies to launch contracts ▪ Limited ...
The legal form together with the intent and ability will still be determining conditions under the current and future USGAAP for classification, while the IFRS 9 categorization effective since 2018 will be based on the new criteria, namely financial instruments’ contractual cash flows and the busines...
2. Recognition of Accounting Elements Whether a company reports under US GAAP vs IFRS can also affect whether or not an item is recognized as anasset,liability,revenue, or expense, as well as how certain items are classified. Research and Development (R&D) Costs ...
Current rules of IAS 18 say that ABC should apply the recognition criteria to the separately identifiable components of a single transaction (here: handset + monthly plan). However,IAS 18 does not give any guidanceon how to identify these components and how to allocate selling price and as a...
In case recognition criteria are met, these costs are capitalised and generally depreciated using the straight-line method over five years or, if more appropriate, using the number of production or similar units expected to be obtained from the tools (sum-of-the-units method). Especially for ...
However, US GAAP includes specific revenue recognition criteria for different types of revenue- generating transactions, which in many cases differ from IFRS. Unlike IFRS, there is extensive guidance on revenue recognition specific to the industry and type of contract. Like IFRS, if an arrangement...