IFRS MYSTERIES 1

(I have realized that almost 90% of the knowledge was wiped out.)

I have realized that almost 90% of the knowledge was wiped out.

(This book contains comprehensive summary and pictorial representations.)

This book contains comprehensive summary and pictorial representations.

(GAAP is a set of rules and standards regulating financial reporting.)

GAAP is a set of rules and standards regulating financial reporting.

(GAAP makes FS consistent and comparable.)

GAAP makes FS consistent and comparable.

(Local GAAPs are rule based, giving lesser room for assumptions in comparison to IFRS.)

Local GAAPs are rule based, giving lesser room for assumptions in comparison to IFRS.

(GAAP is required to be followed by all entities to comply with local regulations.)

GAAP is required to be followed by all entities to comply with local regulations.

(IFRS 1 requires entities to disclose the differences arising out of transition.)

IFRS 1 requires entities to disclose the differences arising out of transition.

(The standard sets out the procedures to be followed by an entity.)

The standard sets out the procedures to be followed by an entity.

(Share-based payments get expensed off in compliance with IFRS 2 only.)

Share-based payments get expensed off in compliance with IFRS 2 only.

(It enables users to evaluate the financial effect.)

It enables users to evaluate the financial effect.

(Assets held for sale don't get depreciated.)

Assets held for sale don't get depreciated.

(They are shown at lower of carrying value & Net realisable value.)

They are shown at lower of carrying value & Net realisable value.

(Operating segments are component of an entity.)

Operating segments are component of an entity.

(Over 10% of revenue and so on are considered Reportable segments.)

Over 10% of revenue and so on are considered Reportable segments.

(Loan kept with intention of solely collecting contractual cash flow gets measured at 'Amortized cost'.)

Loan kept with intention of solely collecting contractual cash flow gets measured at 'Amortized cost'.

(They are opted for FVPL.)

They are opted for FVPL.

(Different probable default scenarios impact Expected credit losses.)

Different probable default scenarios impact Expected credit losses.

(FVOCI should not be reclassified to FVPL at time of derecognition unlike old IAS 39.)

FVOCI should not be reclassified to FVPL at time of derecognition unlike old IAS 39.

(Exposure or substantive rights to variable returns by virtue of involvement with Investee)

Exposure or substantive rights to variable returns by virtue of involvement with Investee

(If any of the above conditions are not met,)

If any of the above conditions are not met,