IFRS MYSTERIES 3

(IAS19 prescribes rules for Employee Benefits beside salary.)

IAS19 prescribes rules for Employee Benefits beside salary.

(Employee benefits are consideration given in any form to the employee, in exchange for their services.)

Employee benefits are consideration given in any form to the employee, in exchange for their services.

(The benefits which are due within 12 months called Short term benefits.)

The benefits which are due within 12 months called Short term benefits.

(Expenses for compensated absence like Earned leaves, gets recorded when underlying services are rendered.)

Expenses for compensated absence like Earned leaves, gets recorded when underlying services are rendered.

(enforcing legal or constructive obligation)

enforcing legal or constructive obligation

(The cost attributable to the services rendered in current period shall be recorded PL accounts.)

The cost attributable to the services rendered in current period shall be recorded PL accounts.

(Grant - only if there is a reasonable assurance of 'compliance with underlying condition' and 'receipt'.)

Grant - only if there is a reasonable assurance of 'compliance with underlying condition' and 'receipt'.

(A Currency of primary economic environment in which entity is operating is called Functional currency.)

A Currency of primary economic environment in which entity is operating is called Functional currency.

(Two comparative years are required when you are applying for listing.)

Two comparative years are required when you are applying for listing.

(Qualifying assets are the assets substantial period of time to get ready for sale or use.)

Qualifying assets are the assets substantial period of time to get ready for sale or use.

(Dividend from Subsidiary is accounted in PL account as soon as Right to Receive is established.)

Dividend from Subsidiary is accounted in PL account as soon as Right to Receive is established.

(Over 20% or more Voting rights is precluded to have significant influence unless proven otherwise.)

Over 20% or more Voting rights is precluded to have significant influence unless proven otherwise.

(In post acquisition, losses should be recognized only to the extent of cost.)

In post acquisition, losses should be recognized only to the extent of cost.

(in excess of carrying value of the investment,)

in excess of carrying value of the investment,

(Financial liability includes contractual obligation with another entity in unfavorable conditions.)

Financial liability includes contractual obligation with another entity in unfavorable conditions.

(Compound instruments shall be presented in form of liability for the loan element and equity for option.)

Compound instruments shall be presented in form of liability for the loan element and equity for option.

(Financial asset and liability can be set-offed with each other only when having legally enforceable rights.)

Financial asset and liability can be set-offed with each other only when having legally enforceable rights.

(Intangible assets with indefinite useful life only has to be tested for impairment annually.)

Intangible assets with indefinite useful life only has to be tested for impairment annually.

(Recoverable value is taken as 'Fair Value adjusted with Cost of disposal' or 'Value in Use'.)

Recoverable value is taken as 'Fair Value adjusted with Cost of disposal' or 'Value in Use'.