As a result, the expected credit loss on your financial assets can be much greater than you estimated based on your historical information and previous forecasts. You can imagine that all forecasts made prior the outbreak are simply outdated and don’t apply anymore. IFRS 9 says that expected ...
This is known as ABC analysis. Identify and move deadstock: Deadstock, also known as obsolete inventory, includes damaged items, incorrect deliveries, and leftover seasonal products that aren’t expected to sell. Record items that fall into this category and remove them from inventory to minimize...
Unlike the equity where the payment by the issuer is only be expected during the solvency, the debt must be paid when due as prescribed by the debt contracts. Normally the debts are in the form of deposits, loan, bonds, payables and receivables. According to IFRS 9, the debts should be ...
Contract asset is NOT a financial instrument, soIFRS 9does not apply here, with one exception: impairment. So, you have to assess the contract asset for any impairment, determine theexpected credit loss and recognize a loss allowance– exactly as with any trade receivables you have. ...
The hedge’s key benefit is that it greatly reduces the risk of an investment. If, as is the case with almost any investment, an investor makes an investment in which factors are out of his control, then he stands to lose money if things would not go as he expected. A hedge may ass...
One of the primary purposes of a true up is to reconcile recorded figures with the actual or expected values. This helps to identify and rectify any anomalies or inconsistencies in the financial statements. By making necessary adjustments, organizations can present a more accurate picture of their...
One such concept is Net Realizable Value (NRV), which plays a significant role in determining the value of assets or liabilities. NRV is a commonly used term in finance that provides insights into the estimated selling price of an asset or the amount expected to be recovered from a liability...
We aim to make sure that everyone at BP – and everyone we come into contact with – is treated with fairness, respect and dignity, and never unfairly discriminated against. Our aim is that as a BP employee you: • Know what is expected of you in your role. • Have open and ...
Ng FCCA, chief financial officer, Straco Corporation Regulators: lending credibility As chief financial officer of Straco Corporation, a leading developer of Chinese tourist and leisure attractions, Amos Ng is very clear about what is expected from finance leaders in the field of narrative reporting....
A lower performance is expected due to the aggregation of data that now takes place in thirteen currencies instead of one. Available Currencies Currency Transaction Currency Company Code Currency Amount Amount in Transaction Currency Amount in Company Code Currency Global Currency Amount In Global ...