March

Over 500,000 e-learning downloads from IASPlus

03 Mar 2006

Some time late last month, the 500,000th module of Deloitte's IFRS e-learning was downloaded from IASPlus.

The exact 1 March 2006 figure is 501,230. Many of the downloaded modules have multiple users because organisations are permitted to install them on their own servers for the internal use of their employees or students. In addition, hundreds of thousands of additional modules have been completed online and offline by Deloitte staff. You can always access IFRS e-learning without charge by clicking on the light bulb icon on the IASPlus home page. Thirty-five modules are now available.

IFRIC 9 - reassessment of embedded derivatives

02 Mar 2006

The IFRIC has issued Interpretation 9 'Reassessment of Embedded Derivatives'.

An embedded derivative as a component of a hybrid (combined) financial instrument that also includes a non-derivative host contract (for example, the conversion option in convertible debt). Some of the cash flows of the combined instrument vary in a way similar to a stand-alone derivative.

IAS 39 Financial Instruments: Recognition and Measurement requires an entity, when it first becomes a party to a hybrid contract, to assess whether any embedded derivatives contained in the contract are required to be separated from the host contract and accounted for as if they were stand-alone derivatives.

IFRIC 9 addresses whether IAS 39 requires such an assessment to be made only when the entity first becomes a party to the hybrid contract, or whether the assessment be reconsidered throughout the life of the contract.

IFRIC 9 concludes that an entity must assess whether an embedded derivative is required to be separated from the host contract and accounted for as a derivative when the entity first becomes a party to the contract. Subsequent reassessment is prohibited unless there is a change in the terms of the contract that significantly modifies the cash flows that otherwise would be required under the contract, in which case reassessment is required.

Click for More Information about IFRIC 9.

IFRIC 9 is effective for annual periods beginning on or after 1 June 2006. Earlier application is encouraged. Click for Press Release (PDF 60k).

 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.