IFRS

Question 1

IFRS 16: Steps for Leases

Answer 1

1. Definition: A contract is a lease if it conveys the right ro control use of an identified asset for a period of time in exchange for consideration.
2. Identify and separate lease components
   IFRS 16.B32
3. Determine the commencement date of the lease
4. Determine the lease term
   IFRS 16.18
5. Determine the discount rate
   = Rate(total cost, nper, pmt)
6. Initial Measurement
   Dr. ROU Asset
   Cr. Lease Liability
   IFRS 16.23/67
7. Subsequent Measurement
   Dr. Interest Expense
   Cr. Lease Liability
   Dr. Depreciation
   Cr. ROU Asset

IFRS 16.22 - Lessee

Question 2

Intangible Assets

ICF

Answer 2

1. Def ICFEB
2. Rec FEBCRM
3. comp ICFARM

Identifiable, control, future economic benefits

future economic benefits, cost measured reliably

intention to complete, cost reliably measured, technical feasibility, ability to use or sell, adequate resources, market exists/future economic benefits

Question 3

Betterment

Answer 3

QLOQ

Quantity, life, operating costs, quality

Question 4

Assets held for sale

Answer 4

ASC SAM

Activtely marketed at a reasonable price
steps to locate a buyer started
changes to plan unlikely
sale probbale and expected
avaliable for immediate sale
management commits to a plan to sell

Question 5

IFRS 15 Revenue Rec

Answer 5

ISTAR

Identify contract
Separate POs
Transaction Price
Allocate transaction price
Recognize rev as PO are satisfied

Question 6

IAS 37 - Provisions (Liability)

Answer 6

define: .10 Provision - A liability of uncertain timing or amount
rec: 14 A provision shall be recognised when:

(a) an entity has a present obligation (legal or constructive) as a result of a past event;

(b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(c) a reliable estimate can be made of the amount of the obligation.

Measurement: 36 The amount recognised as a provision shall be the best estimate of the expenditure required to settle the present obligation at the end of the reporting period.

Question 7

IAS 37 - Provisions (reimbursements for costs)

Answer 7

53 Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement shall be recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset. The amount recognised for the reimbursement shall not exceed the amount of the provision.

54 In the statement of comprehensive income, the expense relating to a provision may be presented net of the amount recognised for a reimbursement.

Question 8

IAS 21 - Foreign Exchange

Answer 8

IAS 21.21: A foreign currency transaction shall be recorded, on initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. - aka spot rate

.23 - Subsequent measurement: At the end of each reporting period:

(a) foreign currency monetary items shall be translated using the closing rate;

(b) non-monetary items that are measured in terms of historical cost in a foreign currency shall be translated using the exchange rate at the date of the transaction; and

(c) non-monetary items that are measured at fair value in a foreign currency shall be translated using the exchange rates at the date when the fair value was measured.