IFRS MYSTERIES 2

(Level 1 inputs of valuation hierarchy recommends quoted or traded market price in an active market.)

Level 1 inputs of valuation hierarchy recommends quoted or traded market price in an active market.

(Level 3 inputs include entity's own data with reasonable assumptions.)

Level 3 inputs include entity's own data with reasonable assumptions.

(Level 3 is only used when none of the above potions are available for the assets or liabilities.)

Level 3 is only used when none of the above potions are available for the assets or liabilities.

(Step 1. Identify the Contract)

Step 1. Identify the Contract

(Step 2. Identify performance obligation in the contract)

Step 2. Identify performance obligation in the contract

(Step 3. Determine the Transaction price)

Step 3. Determine the Transaction price

(Step 4. Allocate Transaction price to Performance Obligations)

Step 4. Allocate Transaction price to Performance Obligations

(Step 5. Recognize the revenue when entity satisfies performance obligation)

Step 5. Recognize the revenue when entity satisfies performance obligation

(Entity needs to assess all the active contracts to identify a lease.)

Entity needs to assess all the active contracts to identify a lease.

(out of which over 20% of IASs are deleted and succeeded by IFRS subsequently)

out of which over 20% of IASs are deleted and succeeded by IFRS subsequently

(SOFP must show some accounts separately as per IAS 1 requirements.)

SOFP must show some accounts separately as per IAS 1 requirements.

(Changes in policy and correction are accounted retrospectively since earliest practical period.)

Changes in policy and correction are accounted retrospectively since earliest practical period.

(reason for impracticality of retrospective application)

reason for impracticality of retrospective application

(Indicative conditions for Adjusting events were present on the reporting date.)

Indicative conditions for Adjusting events were present on the reporting date.

(take a period involving larger than one accounting period)

take a period involving larger than one accounting period

(If probable outcome is a loss, the entire loss should be recognized immediately in FS.)

If probable outcome is a loss, the entire loss should be recognized immediately in FS.

(Temporary difference is a difference in carrying amount as per accounts book and tax book numbers.)

Temporary difference is a difference in carrying amount as per accounts book and tax book numbers.

(DTA is recognized only to the extent there is a recoverability indicator in future period.)

DTA is recognized only to the extent there is a recoverability indicator in future period.

(Asset should be derecognized if it's getting disposed or future economic benefits are not expected.)

Asset should be derecognized if it's getting disposed or future economic benefits are not expected.

(Interest cost for deferred payment should not be taken in cost of asset.)

Interest cost for deferred payment should not be taken in cost of asset.