How Is Goodwill Calculated in a Business Combination Under IFRS 3?
Under IFRS 3, goodwill equals consideration transferred plus non-controlling interest, less net identifiable assets acquired and liabilities assumed.
2026-09-29
Adjusting vs Non-Adjusting Events After the Reporting Period (IAS 10)
Adjusting events reflect conditions existing at period end and require adjustment; non-adjusting events do not, under IAS 10.
2026-09-29
What Is IFRS 18 and How Does It Change the Presentation of the Income Statement?
IFRS 18 is a new presentation Standard requiring income and expenses to be split into five categories, effective from 1 January 2027.
2026-09-29
What Is the Fair Value Hierarchy Under IFRS 13?
IFRS 13 establishes a three-level hierarchy for inputs used to measure fair value, from quoted prices (Level 1) to unobservable inputs (Level 3).
2026-09-29
Accounting Policy Change vs Accounting Estimate Change Under IAS 8
IAS 8 requires a change in accounting policy to be applied retrospectively, while a change in accounting estimate is recognised prospectively only.
2026-09-29
How to Prepare a Statement of Cash Flows Under IAS 7
IAS 7 requires cash flows to be classified into operating, investing and financing activities, reported using either the direct or the indirect method.
2026-09-29
Cost Model or Fair Value Model for Investment Property Under IAS 40?
IAS 40 requires an entity to choose either the fair value model or the cost model for all its investment property, and apply it consistently.
2026-09-29
What Is the Difference Between Defined Contribution and Defined Benefit Plans Under IAS 19?
IAS 19 classifies post-employment plans as defined contribution, where risk falls on the employee, or defined benefit, where risk falls on the entity.
2026-09-29
How Is Deferred Tax Calculated Under IAS 12?
IAS 12 measures deferred tax on temporary differences between an asset's or liability's carrying amount and its tax base.
2026-09-29
When Are Development Costs Recognized as an Intangible Asset Under IAS 38?
IAS 38 distinguishes research from development: research costs are always expensed, while development costs are capitalised only if six criteria are met.
2026-09-29
When Must a Provision Be Recognized Under IAS 37?
IAS 37 requires a provision only when a present obligation, a probable outflow, and a reliable estimate all exist together.
2026-09-29
How Is Asset Impairment Tested Under IAS 36?
IAS 36 provides that an asset is impaired when its carrying amount exceeds its recoverable amount.
2026-09-29
How Is Depreciation Calculated Under IAS 16?
IAS 16 requires the depreciable amount to be allocated systematically over an asset's useful life to reflect the pattern of benefit consumption.
2026-09-29
What Costs Are Included in Property, Plant and Equipment Under IAS 16?
IAS 16 recognises the cost of an item of property, plant and equipment as an asset when future benefits are probable and cost is reliably measurable.
2026-09-29
What Inventory Cost Formulas Does IAS 2 Permit?
IAS 2 permits the FIFO and weighted average cost formulas for assigning cost to interchangeable inventories.
2026-09-29
How Is Inventory Measured Under IAS 2?
IAS 2 Inventories requires inventories to be measured at the lower of cost and net realisable value.
2026-09-29
How Are Expected Credit Losses Calculated Under IFRS 9?
An entity measures the loss allowance at 12-month or lifetime expected credit losses, depending on credit risk, with a 30-day presumption.
2026-09-29
How Are Financial Assets Classified Under IFRS 9?
IFRS 9 classifies a financial asset based on the entity's business model and the asset's contractual cash flow characteristics.
2026-09-29
How Is a Sale and Leaseback Transaction Accounted for Under IFRS 16?
IFRS 15 first determines whether the transfer is a sale; if so, the seller-lessee recognises a right-of-use asset only for the retained right of use.
2026-09-29
How Does a Lessee Account for a Lease Modification Under IFRS 16?
A modification is a separate lease if scope increases at a stand-alone price; otherwise the lessee remeasures the liability with a revised discount rate.
2026-09-29
How Does a Lessee Measure the Lease Liability and Right-of-Use Asset Under IFRS 16?
A lessee measures the lease liability at its discounted value and the right-of-use asset at cost, with an exemption for short-term and low-value leases.
2026-09-29
When Does a Contract Contain a Lease Under IFRS 16?
A contract contains a lease if it conveys the right to control the use of an identified asset for a period, per IFRS 16.
2026-09-29
How Are Costs to Obtain and Fulfil a Contract Accounted for Under IFRS 15?
An entity capitalises the incremental costs of obtaining a contract if it expects recovery, amortising the asset with the transfer of goods or services.
2026-09-29
How Is the Transaction Price Determined When Consideration Is Variable Under IFRS 15?
An entity estimates variable consideration and includes it only to the extent it is highly probable a significant revenue reversal will not later occur.
2026-09-29