How to test hedge effectiveness under IFRS 9?
How to assess hedge effectiveness prospectively under IFRS 9? Do we need to calculate the hedge effectiveness retrospectively?
How to account for contracts to buy commodities with future delivery (own use)?
When you purchase a commodity with future delivery for fixed price, should you account for it as for derivative under IFRS 9? Or as a purchase of inventories (“own-use” contract)? Find out here with example included.
How to account for investment in gold under IFRS?
The truth is that there is no specific IFRS related to precious metals. What to do when you buy gold and other metals to store value? Learn here!
Can we classify loans with variable interest at amortized cost?
Variable interest with cap/floor, full recourse, inflation-linked interest, collaterals – can you still classify these loans as at amortized cost?
Coronavirus and IFRS – What is happening?
Over past few months, coronavirus became the most mentioned word everywhere. No wonder – not only it takes lives of our dear ones, but it also affects our daily life in many different ways. In many countries, people cannot go to work, kids cannot go…
Measuring expected credit loss: Loss rate vs. Probability of default
Some time ago I published an article about calculating bad debt provision in line with IFRS 9. Precisely speaking, it was about measuring expected credit loss using simplified approach for trade receivables – just to be on the safe side. Since then, I keep receiving…
Example: Expected Credit Loss on Interest-free On-demand Loan
Let’s face the truth: most intercompany loans (or at least many of them) are special in some way: They are undocumented – a parent simply sends cash to a subsidiary with no contract whatsoever and no one has an idea what the terms of the…
Expected Credit Loss on Intercompany Loans
Should you ever recognize impairment, or a provision on your intercompany loan (if you are a lender, of course)? Why would you do that when all intercompany balances are eliminated on consolidation and there’s nothing left in the consolidated financial statements – no loan, no…
IFRS 9: An Auditor’s Perspective
The end of 2018 spelled out relief for most accounting and financial modelling experts responsible for the implementation of IFRS 9: all necessary changes to accounting policies, models and methodologies were designed and enforced, all in time for a lovely Christmas break at the end…
036: Contract asset vs. account receivable
What is the difference between contract asset and receivable? When to book a contract asset and when a receivable? Learn here (with example)!
