FRS 109 - Financial Instruments
1. Scope - What are financial assets and financial liabilities?
2. Measurement of financial assets
- financial assets measured at amortised cost
- financial assets measured at fair value through other comprehensive income
- financial assets measured at fair value through profit or loss
3. Classification of financial liabilities
- financial liabilities as subsequently measured at amortised cost
- financial liabilities at fair value through profit or loss
4. The new impairment model
- Measurement of expected credit losses
- Recognition of expected credit losses
- Simplified approach for trade receivables, contract assets and lease receivables
FRS 115
5 Steps to Revenue Recognition
1. Identify the contract with the customer
- Combination of contracts
- Contract modifications
2. Identify the separate performance obligations in the contract
3. Determine the transaction price
- Variable consideration
- The time value of money
- Non-cash consideration
4. Allocate the transaction price
5. Recognise revenue when a performance obligation is satisfied
- Performance obligations satisfied over time
- Performance obligations satisfied at a point in time
- Non-cash consideration
FRS 116 - Accounting by Lessees
- Measurement of right of use assets
- Measurement of the lease liability using the right discount rates and factoring variable lease payments
- Determining the lease term including options to renew
- Reassessment of the lease liability
