DOCSLIB.ORG

Ifrs 9 & Key Changes with Ias 39

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Ifrs 9 & Key Changes with Ias 39 THE KOSOVO BANKER | JULY 2017 EXPERTS CORNER 12 IFRS 9 & KEY CHANGES WITH IAS 39 Ms. ARTA LIMANI Mr. ARIAN META SENIOR MANAGER MANAGER DELOITTE KOSOVA DELOITTE KOSOVA SH.P.K. SH.P.K. The introduction of new requirements strong governance and internal controls to in IFRS 9 Financial Instruments will be a give all stakeholders confidence in resulting significant change to the financial reporting financial information. For many banks, the of banks. It will impact many stakeholders adoption of expected credit loss accounting including investors, regulators, analysts and will be the most momentous accounting auditors. Given the importance of banks in change they have experienced, even more the global capital markets and the wider significant than their transition to IFRSs. economy, the effective implementation of the new standard has the potential to The key changes between IFRS 9 and IAS benefit many. Conversely, a low-quality 39 are summarized below. implementation based on approaches that are not fit for purpose has the risk of undermining confidence in the financial Changes in Scope results of the banks. t Financial instruments that are in the The International Accounting Standards scope of IAS 39 are also in the scope Board (IASB) published the final version of of IFRS 9. However, in accordance with IFRS 9 Financial Instruments in July 2014. IFRS 9, an entity can designate certain IFRS 9 replaces IAS 39 Financial Instruments: instruments subject to the own-use Recognition and Measurement, and is exception at fair value through profit or effective for annual periods beginning on loss (FVTPL); hence, IFRS 9 will apply to or after January 1, 2018. Earlier application these instruments. is permitted. The new standard aims t The IFRS 9 impairment requirements to simplify the accounting for financial apply to all loan commitments and instruments and address perceived contract assets in the scope of IFRS 15 deficiencies which were highlighted by the Revenue from Contracts with Customers. recent financial crisis. Time is running out. Banks that report under Changes in Classification and IFRSs must apply IFRS 9 Financial Instruments Measurement in their 2018 financial statements. To be ready, banks must complete a large multi- t The classification categories for disciplinary project combining the skills of financial assets under IAS 39 of held to finance, risk and IT. The project will require maturity, loans and receivables, FVTPL, 13 EXPERTS CORNER THE KOSOVO BANKER | JULY 2017 and available-for-sale determine their FVTPL. In such instances, IFRS 9 requires measurement. These are replaced in the recognition of all changes in fair IFRS 9 with categories that reflect the value in profit or loss. measurement, namely amortized cost, t Reclassification of financial assets fair value through other comprehensive under IFRS 9 is required only when income (FVOCI) and FVTPL. an entity changes its business model t IFRS 9 bases the classification of financial for managing financial assets and is assets on the contractual cash flow prohibited for financial liabilities; hence, characteristics and the entity’s business reclassifications are expected to be vary model for managing the financial asset, rare. whereas IAS 39 bases the classification on specific definitions for each Impairment category. Overall, the IFRS 9 financial asset classification requirements are t IFRS 9 applies a single impairment model considered more principle based than to all financial instruments subject to under IAS 39. impairment testing while IAS 39 has t Under IFRS 9, embedded derivatives are different models for different financial not separated (or bifurcated) if the host instruments. Impairment losses are contract is an asset within the scope of recognized on initial recognition, and at the standard. Rather, the entire hybrid each subsequent reporting period, even contract is assessed for classification if the loss has not yet been incurred. and measurement. This removes the t In addition to past events and current complex IAS 39 bifurcation assessment conditions, reasonable and supportable for financial asset host contracts. forecasts affecting collectability are t Under IAS 39, derivative financial also considered when determining the assets/liabilities that are linked to, amount of impairment in accordance and settled by, delivery of unquoted with IFRS 9 equity instruments, and whose fair value cannot be reliably determined The impairment requirements under IFRS 9 are required to be measured at cost. are significantly different from those under IFRS 9 removes this cost exception for IAS 39. The followings highlights the key derivative financial assets/liabilities; differences between the two standards. therefore, all derivative liabilities will be measured at FVTPL. t IAS 39 allows certain equity investments IAS 39 Incurred Loss Model in private companies for which the fair value is not reliably determinable to be t Delays the recognition of credit losses measured at cost, while under IFRS 9 all until there is objective evidence of equity investments are measured at fair impairment. value t Only past events and current conditions t For certain financial liabilities designated are considered when determining the at FVTPL under IFRS 9, changes in the amount of impairment (i.e., the effects fair value that relate to an entity’s of future credit loss events cannot own credit risk are recognized in other be considered, even when they are comprehensive income (OCI) while expected). the remaining change in fair value is t Different impairment models for recognized in profit or loss. Exceptions to different financial instruments subject this recognition principle include when to impairment testing, including equity this treatment creates, or enlarges, an investments classified as available-for- accounting mismatch and also does not sale. apply to loan commitments or financial guarantee contracts designated as THE KOSOVO BANKER | JULY 2017 EXPERTS CORNER 14 IFRS 9 Expected Credit Loss Model What are ‘credit losses’? t Expected credit losses (ECLs) are Credit losses are defined as the difference recognized at each reporting period, between all the contractual cash flows that even if no actual loss events have taken are due to an entity and the cash flows place. that it actually expects to receive (‘cash t In addition to past events and current shortfalls’). This difference is discounted conditions, reasonable and supportable at the original effective interest rate (or forward-looking information that is credit-adjusted effective interest rate for available without undue cost or effort is purchased or originated credit-impaired considered in determining impairment. financial assets). t The model will be applied to all financial instruments subject to impairment testing. What are ‘12-month expected credit losses’? t 12-month expected credit losses are a The general (or three-stage) portion of the lifetime expected credit impairment approach losses t they are calculated by multiplying the IFRS 9’s general approach to recognizing probability of a default occurring on the impairment is based on a three-stage instrument in the next 12 months by the process which is intended to reflect the total (lifetime) expected credit losses deterioration in credit quality of a financial that would result from that default instrument. t they are not the expected cash shortfalls over the next 12 months. t Stage 1 covers instruments that have not deteriorated significantly in credit They are also not the credit losses on quality since initial recognition or financial instruments that are forecast to (where the optional low credit risk actually default in the next 12 months. simplification is applied) that have low credit risk t Stage 2 covers financial instruments What are ‘lifetime expected credit that have deteriorated significantly in losses’? credit quality since initial recognition (unless the low credit risk simplification Lifetime expected credit losses are the has been applied and is relevant) but expected shortfalls in contractual cash that do not have objective evidence of a flows, taking into account the potential for credit loss event default at any point during the life of the t Stage 3 covers financial assets that have financial instrument. objective evidence of impairment at the reporting date. IFRS 9 draws a distinction between financial instruments that have not deteriorated 12-month expected credit losses are significantly in credit quality since initial recognized in stage 1, while lifetime recognition and those that have. ‘12-month expected credit losses are recognized in expected credit losses’ are recognized for stages 2 and 3. the first of these two categories. ‘Lifetime expected credit losses’ are recognized for the second category. Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected life of the 15 EXPERTS CORNER THE KOSOVO BANKER | JULY 2017 financial instrument. An asset moves from about its credit risk, it may not be possible 12-month expected credit losses to lifetime to identify significant changes in credit expected credit losses when there has risk at individual instrument level before been a significant deterioration in credit the financial instrument becomes past quality since initial recognition. Hence the due. It may therefore be necessary to ‘boundary’ between 12-month and lifetime assess significant increases in credit risk losses is based on the change in credit risk on a collective
Load more

Recommended publications
  • IFRS 9, Financial Instruments Understanding the Basics Introduction
    www.pwc.com/ifrs9 IFRS 9, Financial Instruments Understanding the basics Introduction Revenue isn’t the only new IFRS to worry about for 2018—there is IFRS 9, Financial Instruments, to consider as well. Contrary to widespread belief, IFRS 9 affects more than just financial institutions. Any entity could have significant changes to its financial reporting as the result of this standard. That is certain to be the case for those with long-term loans, equity investments, or any non- vanilla financial assets. It might even be the case for those only holding short- term receivables. It all depends. Possible consequences of IFRS 9 include: • More income statement volatility. IFRS 9 raises the risk that more assets will have to be measured at fair value with changes in fair value recognized in profit and loss as they arise. • Earlier recognition of impairment losses on receivables and loans, including trade receivables. Entities will have to start providing for possible future credit losses in the very first reporting period a loan goes on the books – even if it is highly likely that the asset will be fully collectible. • Significant new disclosure requirements—the more significantly impacted may need new systems and processes to collect the necessary data. IFRS 9 also includes significant new hedging requirements, which we address in a separate publication – Practical guide – General hedge accounting. With careful planning, the changes that IFRS 9 introduces might provide a great opportunity for balance sheet optimization, or enhanced efficiency of the reporting process and cost savings. Left too long, they could lead to some nasty surprises.
    [Show full text]
  • AC501 (M) MAY 20131 IDE AC501 (M) MAY 2013 Page 1 Of8 UNIVERSITY of SWAZILAND DEP ARTMENT of ACCOUNTING MAIN EXAMINATION PAPER, MAY 2013
    AC501 (M) MAY 20131 IDE AC501 (M) MAY 2013 Page 1 of8 UNIVERSITY OF SWAZILAND DEP ARTMENT OF ACCOUNTING MAIN EXAMINATION PAPER, MAY 2013 DEGREEI DIPLOMA AND YEAR OF STUDY RCOMV TITLE OF PAPER FINANCIAL ACCOUNTING 1V COURSE CODE AC501 (M) MAY 2013 (Full-time) IDE AC501 (M) MAY 2013 (PART-TIME) TIME ALLOWED THREE (3) HOURS TOTAL MARKS 100 MARKS INSTRUCTIONS 1 There are four (4) questions on this paper. 2 Answer all four (4) questions. 2 Begin the solution to each question on a new page. 3 The marks awarded for a question are indicated at the end ofeach question. 4 Show the necessary working. 5 Calculations are to be made to zero decimal places of accuracy, unless otherwise instructed. Note: You are reminded that in assessing your work, account will be taken of accuracy of the language and general quality of expression, together with layout and presentation of your answer. SPECIAL REQUIREMENTS: CALCULATOR THIS PAPER IS NOT TO BE OPENED UNTIL PERMISSION HAS BEEN GRANTED BY THE INVIGILATOR OR SUPERVISOR. AC501 (M) MAY 20131 IDE AC501 (M) MAY 2013 Page 2 ofS QUESTION 1 . The Statement of financial position of Anstone Co, Yals Co and Zoo Co at 31 March 2012 are summarized as follows . • "L...""' .....,,··~.·cO : Non current assets Freehold property , Plant and machin~ry . 310,000 3,000 . Investment in subsidiaries Shares, at cost 110,000 6,~00 Loan account 3!f.iO() . Current accounts 10,000 12,200 120,000 22,200 Current assets Inventories 170,000 , .. , 15,()()() . Receivables 140,000 50,000 1,000 Cash at bank 60,000 4,000 370,000 20,000 800,000 289,200 23,000 Equity and liabilities EClui~y Ordinary share capital 200,000 10,000 Retained earnings 129,200 -1,000 579,600 229,200 ' .
    [Show full text]
  • Earnings Per Share. the Two-Class Method Is an Earnings Allocation
    Earnings Per Share. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities, according to dividends declared and participation rights in undistributed earnings. Under this method, net earnings is reduced by the amount of dividends declared in the current period for common shareholders and participating security holders. The remaining earnings or “undistributed earnings” are allocated between common stock and participating securities to the extent that each security may share in earnings as if all of the earnings for the period had been distributed. Once calculated, the earnings per common share is computed by dividing the net (loss) earnings attributable to common shareholders by the weighted average number of common shares outstanding during each year presented. Diluted (loss) earnings attributable to common shareholders per common share has been computed by dividing the net (loss) earnings attributable to common shareholders by the weighted average number of common shares outstanding plus the dilutive effect of options and restricted shares outstanding during the applicable periods computed using the treasury method. In cases where the Company has a net loss, no dilutive effect is shown as options and restricted stock become anti-dilutive. Fair Value of Financial Instruments. Disclosure of fair values is required for most on- and off-balance sheet financial instruments for which it is practicable to estimate that value. This disclosure requirement excludes certain financial instruments, such as trade receivables and payables when the carrying value approximates the fair value, employee benefit obligations, lease contracts, and all nonfinancial instruments, such as land, buildings, and equipment.
    [Show full text]
  • Update IFRS 9: Current Implementation Challenges and Solution Approaches
    Update IFRS 9: Current implementation challenges and solution approaches Risk EMEA conference, 10 May 2017 Implementation of IFRS 9 is much more than just a simple Change in Bank Accounting – enormous changes and challenges to be considered Impact of IFRS 9 on financial institutions Impact of IFRS 9 Challenges for Top Management IFRS 9 Accounting rules will replace actual Standard IAS 39 per 1.1.2018 GET guidance for IFRS 9 defines new standards for P&L & equity impact financial instruments with significant 1 impact on financial institutions FOSTER co-operation IFRS 9 directly affects P&L and Strong Impact between Risk and balance sheet positions, regulatory of IFRS 9 Finance function capital and major KPIs challenges Top In addition, due to numerous new Management MANAGE high change regulatory requirements business, and run the bank costs process and IT dependencies with IFRS 9 need to proactively considered and managed PREPARE EBA “stress test” 2018 with focus Therefore a change management for on IFRS 9 impact the organization, processes and IT landscape is necessary 1 With new requirements for the insurance contract insurance companies have a longer transition period with 2021. Big players have started in 2017 with goal to complete in 2018. Source: zeb Risk EMEA Conference 2017 20170510_IFRS 9 impact - 2 IFRS 9 implies significant economic and organizational impact on banks which report their financial statements according to IFRS IFRS 9 impact on banks Based on EBA Impact Study Survey results based on a sample of 58 institutions zeb view 1 CET1 ratio is estimated to decrease on “What effect does IFRS 9 have on existing equity?” average by up to 80 bps and total capital Equity <-10 bps >-70bps ratio by up to 50 bps.
    [Show full text]
  • IAS 39 Appendix a Application Guidance
    IAS 39 Financial Instruments: Recognition and Measurement Appendix A Application guidance This appendix is an integral part of the Standard. Scope (paragraphs 2–7) AG1 Some contracts require a payment based on climatic, geological or other physical variables. (Those based on climatic variables are sometimes referred to as ‘weather derivatives’.) If those contracts are not within the scope of IFRS 4, they are within the scope of this Standard. AG2 This Standard does not change the requirements relating to employee benefit plans that comply with IAS 26 Accounting and Reporting by Retirement Benefit Plans and royalty agreements based on the volume of sales or service revenues that are accounted for under IAS 18. AG3 Sometimes, an entity makes what it views as a ‘strategic investment’ in equity instruments issued by another entity, with the intention of establishing or maintaining a long-term operating relationship with the entity in which the investment is made. The investor or joint venturer entity uses IAS 28 to determine whether the equity method of accounting is appropriate for such an investment. If the equity method is not appropriate, the entity applies this Standard to that strategic investment. AG3A This Standard applies to the financial assets and financial liabilities of insurers, other than rights and obligations that paragraph 2(e) excludes because they arise under contracts within the scope of IFRS 4. AG4 Financial guarantee contracts may have various legal forms, such as a guarantee, some types of letter of credit, a credit default contract or an insurance contract. Their accounting treatment does not depend on their legal form.
    [Show full text]
  • Reducing Complexity in IAS 39
    technical update extra FINANCIAL INSTRUMENTS Reducing complexity in IAS 39 MARTIN O’DONOVAN ANALYSES THE PROPOSALS ON REDUCING COMPLEXITY IN FINANCIAL INSTRUMENTS. ll will agree that IAS 39, the accounting standard for financial instruments, is complex, but finding an alternative Executive summary is no easy matter. After years of acknowledging that I The International Accounting Standards Board has started the something must be done the International Accounting formal process of considering the possibilities for reducing AStandards Board (IASB) has issued a discussion paper considering complexity in IAS 39. Its discussion paper sets out thoughts on ways to reduce complexity in the reporting of financial instruments. the way financial instruments are measured and some ideas for The paper deliberately restricts itself to the problems arising from the simplifying hedge accounting. However, behind the openness to many ways by which financial instruments are measured as well as change, the board remains firmly wedded to the long-term aim hedge accounting. Derecognition and presentation and disclosures of extending the application of fair values. are not within its scope. Given that the IASB is very much in favour of full fair-value accounting, it starts from the assumption that fair value would be a good measurement attribute that in the long term should apply to all If the accounts are to be meaningful, surely it is important for the financial assets and liabilities. Certainly, when you consider the range user to understand whether the intention of management is to be a of valuation and measurement methods that currently exists, some trader seeking short-term profits or a longer-term holder, generating form of rationalisation is desirable.
    [Show full text]
  • Frs139-Guide.Pdf
    The KPMG Guide: FRS 139, Financial Instruments: Recognition and Measurement i Contents Introduction 1 Executive summary 2 1. Scope of FRS 139 1.1 Financial instruments outside the scope of FRS 139 3 1.2 Definitions 3 2. Classifications and their accounting treatments 2.1 Designation on initial recognition and subsequently 5 2.2 Accounting treatments applicable to each class 5 2.3 Financial instruments at “fair value through profit or loss” 5 2.4 “Held to maturity” investments 6 2.5 “Loans and receivables” 7 2.6 “Available for sale” 8 3. Other recognition and measurement issues 3.1 Initial recognition 9 3.2 Fair value 9 3.3 Impairment of financial assets 10 4. Derecognition 4.1 Derecognition of financial assets 11 4.2 Transfer of a financial asset 11 4.3 Evaluation of risks and rewards 12 4.4 Derecognition of financial liabilities 13 5. Embedded derivatives 5.1 When to separate embedded derivatives from host contracts 14 5.2 Foreign currency embedded derivatives 15 5.3 Accounting for separable embedded derivatives 16 5.4 Accounting for more than one embedded derivative 16 6. Hedge accounting 17 7. Transitional provisions 19 8. Action to be taken in the first year of adoption 20 Appendices 1: Accounting treatment required for financial instruments under their required or chosen classification 21 2: Derecognition of a financial asset 24 3: Financial Reporting Standards and accounting pronouncements 25 1 The KPMG Guide: FRS 139, Financial Instruments: Recognition and Measurement Introduction This KPMG Guide introduces the requirements of the new FRS 139, Financial Instruments: Recognition and Measurement.
    [Show full text]
  • Extension of the Temporary Exemption from Applying IFRS 9
    June 2020 IFRS® Standards Extension of the Temporary Exemption from Applying IFRS 9 Amendments to IFRS 4 Extension of the Temporary Exemption from Applying IFRS 9 Amendments to IFRS 4 Extension of the Temporary Exemption from Applying IFRS 9 is issued by the International Accounting Standards Board (Board). Disclaimer: To the extent permitted by applicable law, the Board and the IFRS Foundation (Foundation) expressly disclaim all liability howsoever arising from this publication or any translation thereof whether in contract, tort or otherwise to any person in respect of any claims or losses of any nature including direct, indirect, incidental or consequential loss, punitive damages, penalties or costs. Information contained in this publication does not constitute advice and should not be substituted for the services of an appropriately qualified professional. ISBN: 978-1-911629-76-4 Copyright © 2020 IFRS Foundation All rights reserved. Reproduction and use rights are strictly limited. Please contact the Foundation for further details at [email protected]. Copies of Board publications may be ordered from the Foundation by emailing [email protected] or visiting our shop at https://shop.ifrs.org. The Foundation has trade marks registered around the world (Marks) including ‘IAS®’, ‘IASB®’, the IASB® logo, ‘IFRIC®’, ‘IFRS®’, the IFRS® logo, ‘IFRS for SMEs®’, the IFRS for SMEs® logo, ‘International Accounting Standards®’, ‘International Financial Reporting Standards®’, the ‘Hexagon Device’, ‘NIIF®’ and ‘SIC®’. Further details of the Foundation’s Marks are available from the Foundation on request. The Foundation is a not-for-profit corporation under the General Corporation Law of the State of Delaware, USA and operates in England and Wales as an overseas company (Company number: FC023235) with its principal office in the Columbus Building, 7 Westferry Circus, Canary Wharf, London, E14 4HD.
    [Show full text]
  • Securities and Exchange Commission Form S
    11/1/11 1:53 PM S-1/A 1 a2205238zs-1a.htm S-1/A Use these links to rapidly review the document TABLE OF CONTENTS Table of Contents Table of Contents As filed with the Securities and Exchange Commission on November 1, 2011 Registration No. 333-174661 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 7 to FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Groupon, Inc. (Exact name of Registrant as specified in its charter) Delaware 7379 27-0903295 (State or other jurisdiction of (Primary Standard Industrial (I.R.S. Employer incorporation or organization) Classification Code Number) Identification Number) 600 West Chicago Avenue, Suite 620 Chicago, Illinois 60654 312-676-5773 (Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices) Andrew D. Mason Chief Executive Officer Groupon, Inc. 600 West Chicago Avenue, Suite 620 Chicago, Illinois 60654 312-676-5773 (Name, address, including zip code, and telephone number, including area code, of agent for service) Copies to: Steven J. Gavin, Esq. David R. Schellhase, Esq. Peter M. Astiz, Esq. Matthew F. Bergmann, Esq. General Counsel Gregory M. Gallo, Esq. Winston & Strawn LLP Groupon, Inc. Jason C. Harmon, Esq. 35 West Wacker Drive 600 West Chicago Avenue, Suite 620 DLA Piper LLP (US) Chicago, Illinois 60601 Chicago, Illinois 60654 2000 University Avenue 312-558-5600 312-676-5773 East Palo Alto, California 94303 650-833-2036 http://www.sec.gov/Archives/edgar/data/1490281/000104746911008854/a2205238zs-1a.htm Page 1 of 401 11/1/11 1:53 PM Approximate date of commencement of proposed sale to the public: As soon as practicable after this Registration Statement becomes effective.
    [Show full text]
  • When Available, the Fair Value of Securities Is Based on Quoted Prices in Active Markets
    Investments (Trading Securities and Available-for-Sale Securities) When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from nationally-recognized pricing services, broker quotes, or other model-based valuation techniques. Level 1 securities include U.S. Treasuries and seed money in funds traded in active markets. Level 2 securities primarily include agency mortgage backed securities, commercial mortgage backed securities, asset backed securities, municipal and corporate bonds, U.S. and foreign government and agency securities, and seed money and other investments in certain hedge funds. The fair value of these Level 2 securities is based on a market approach with prices obtained from nationally-recognized pricing services. Observable inputs used to value these securities can include: reported trades, benchmark yields, issuer spreads and broker/dealer quotes. Level 3 securities primarily include non-agency residential mortgage backed securities, asset backed securities and corporate bonds. The fair value of these Level 3 securities is typically based on a single broker quote, except for the valuation of non-agency residential mortgage backed securities. Effective March 31, 2010, the Company returned to using prices from nationally-recognized pricing services to determine the fair value of non-agency residential mortgage backed securities because the difference between these prices and the results of the Company’s discounted cash flows was not significant. The Company continues to classify its non-agency residential mortgage backed securities as Level 3 because it believes the market for these securities is still inactive and their valuation includes significant unobservable inputs.
    [Show full text]
  • Juliana Lagreste Zucchini Legajo: 22.130
    Escuela de Administración y Negocios Trabajo de Licenciatura en Administración de Empresas y Contador Público LAS NORMAS CONTABLES ACTUALES Y LAS EMPRESAS DE E-COMMERCE. EL CASO DE GROUPON. Juliana Lagreste Zucchini Legajo: 22.130 Mentora: Cristina Wirth Victoria, 29 de Mayo de 2014 Resumen El presente trabajo de investigación busca responder la siguiente pregunta: “¿En qué medida las empresas de e-commerce, puntualmente en este caso Groupon, requieren un marco normativo contable diferente a los marcos actuales?” Para poder responder este interrogante se han analizado los Estados Contables presentados bajo el marco normativo U.S. GAAP de la empresa Groupon Inc. Esta es una empresa de e-commerce, caracterizada por conectar comerciantes con clientes a través de un portal web al ofrecer cupones con grandes descuentos que pueden ser intercambiados por productos o servicios. Se llevó a cabo un estudio descriptivo basado en el modelo de negocios de esta compañía y en las métricas financieras y operativas utilizadas. Asimismo, se realizó una comparación de estos criterios con las U.S. GAAP colocando el foco en los principales rubros conflictivos como son las ventas y los gastos de online marketing. Se encontraron diferencias de criterio entre lo que Groupon propone y lo que el organismo regulador, la U.S. Securities and Exchange Commission exige. Groupon es un negocio nuevo y revolucionario que no solo pretende innovar en el modelo de negocios si no también en los criterios contables. De acuerdo con la U.S. SEC los criterios propuestos por Groupon distorsionan la realidad económica de la compañía evitando que la misma sea comparable con otras.
    [Show full text]
  • IAS 7 STATEMENT of CASH FLOWS Contents 1
    IFRS IN PRACTICE 2019-2020: IAS 7 STATEMENT OF CASH FLOWS Contents 1. Introduction 4 2. Definition of cash and cash equivalents 5 2.1. Demand deposits 5 2.2. Short term maturity 6 2.3. Investments in equity instruments 6 2.4. Changes in liquidity and risk 6 2.5 Cryptocurrencies 6 2.6 Short-term credit lending and cash and cash equivalent classification 7 3. Restricted cash and cash equivalent balances – disclosure requirements 8 3.1. Interaction with IAS 1 8 4. Classification of cash flows as operating, investing or financing 9 4.1. Operating activities 9 4.2. Investing activities 9 4.3. Financing activities 9 4.3.1. Disclosure of changes in liabilities arising from financing activities 10 4.4. Classification of interest and dividends 10 4.5. Common classification errors in practice 11 5. Offsetting cash inflows and outflows in the statement of cash flows 13 5.1. Effect of bank overdrafts on the carrying amount of cash and cash equivalents 13 5.2. Refinancing of borrowings with a new lender 14 6. Presentation of operating cash flows using the direct or indirect method 15 7. Income taxes and sales taxes 16 8. Foreign exchange 17 8.1. Worked example – foreign currency translation 17 9. Group cash pooling arrangements in an entity’s separate financial statements 20 10. Securities and loans held for dealing or trading 22 11. Classification of cash flows arising from a derivative used in an economic hedge 23 12. Revenue from Contracts with Customers 24 13. Leases 25 13.1. Payments made on inception of a lease 25 13.2.
    [Show full text]