The IASB recently issued Annual Improvements to IFRS Standards 2018-2020. There are only four items (proving once again that it was almost perfect already). Here they are. Financial instruments IFRS 9 regards an exchange of debt instruments with substantially different terms between an existing borrower and a lender as an extinguishment of the original financial liability…
We previously looked at how the ongoing COVID-19 crisis affects the application of some aspects of IFRS 9, Financial Instruments Here’s another issue. An entity removes a financial liability from its balance sheet when and only when the obligation is extinguished – that is, discharged or cancelled or expires. A substantial modification of the terms…
Applying some of the concepts of IFRS 9 in related party situations You’ll recall that under the model in IFRS 9, a financial asset is measured at amortized cost only when it’s held within a business model with the objective of holding financial assets in order to collect contractual cash flows, and the asset’s contractual…
How much does it matter when items are wrongly classified and labeled within the income statement? Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA) (for more background see here); this is from their 20th edition: The issuer is a savings…
Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA) (for more background see here); this is from their 22nd edition: Subsidiary A of the issuer issued perpetual notes. The issuer faced liquidity issues. One of the provisions of the financing agreement…
Problems arising in assessing the application of one of the key scope exemptions applying to financial instruments Here’s another of the issues discussed in the past by Canada’s IFRS Discussion Group: The scope of IFRS 9 Financial Instruments and of IAS 32 Financial Instruments: Presentation include guidance on when certain contracts to buy or sell…
A European example of misapplied standards… Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA) (for more background see here); this is from their 21st edition: The issuer is an IT company which pursued in court another company, Entity X, for…
As we summarized here, the IASB has published for public comment a Discussion Paper on how companies issuing financial instruments should classify them in their financial statements. Last time we looked at this, I mentioned we’d return to the area of presentation. The discussion paper is hard to explain in any kind of plain language (I’m not…
A European example of issues arising in applying IAS 1.85 Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA) (for more background see here); this is from their 20th edition: The issuer facilitates investments by clients who want to gain exposure…
As we summarized here, the IASB has published for public comment a Discussion Paper on how companies issuing financial instruments should classify them in their financial statements. One of the best ways of getting one’s head (somewhat) around the concepts is to focus on instruments for which the proposals would generate a different classification. Here’s one: net-share…
