Government grants are transfers of resources to an entity by government in return for past or future compliance with certain conditions relating to the operating activities of the entity. Government assistance is action by government designed to provide an economic benefit that is specific to an entity or range of entities qualifying under certain criteria.… Continue reading IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
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5 step model for revenue recognition (IFRS 15)
Step 1: Identify the contract with the customer Step 2: Identify the performance Obligations within the contract Step 3: Determine the transaction price Step4: Allocate the transaction price to the performance obligation in the contract Step 5: identify the revenue when (or as) the performance obligation is being satisfied. A simple example which elaborates this… Continue reading 5 step model for revenue recognition (IFRS 15)
Adjustments required to move from previous GAAP to IFRSs at the time of first-time adoption of IFRS.
Derecognition of some previous GAAP assets and liabilities The entity should eliminate previous-GAAP assets and liabilities from the opening statement of financial position if they do not qualify for recognition under IFRSs. [IFRS 1.10(b)] For example: IAS 38 does not permit recognition of expenditure on any of the following as an intangible asset: research start-up,… Continue reading Adjustments required to move from previous GAAP to IFRSs at the time of first-time adoption of IFRS.