AVC LEARNING SOLUTIONS

IFRS 9 discusses the relevance of impairment loss to be accounted for at the time of initial measurement of the financial asset itself. The simplified approach under IFRS 9 helps an entity to quantify the life time losses for majority of receivables and contract assets, rather than spending time analyzing the initial 12 months' expected losses and review these on each reporting date. While this is going to take care of majority of financial assets (taken through amortized cos

The session discusses the accounting treatment of Contingent Liabilities and difference between a provision and a contingent liability

IAS 20 deals with accounting and disclosure of government grants and government assistance. Government, according to the standard, refers to government, government agencies and similar bodies, whether local, national or international. Government Grants are assistance by government in the form of transfer of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. * The government grants can be m

Recognition Criteria Under IFRS 5 IFRS 5 provides that the asset under consideration must be available for immediate sale in its present condition subject to terms that are usual and customary for sales of such assets and its sale must be highly probable. Immediate sale Example: AV Ltd owns a building where it runs its branch sales office. Due to change in business operations, the building is not required by AV Ltd. The building is agreed to be sold in its present condition t

The accounting for Share Based Payments is usually complicated. This, however, is relevant considering the fact that many entities have started providing compensation based on equity shares in the entity itself to the employees. The accounting for Share Based Payments has many aspects - one of the most relevant aspects is vesting conditions - whether these are service based or performance based. How the change is measured in the financial statements and the accounting done fo