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There are three types of share-based payment transactions: equity-settled, cash-settled, and optionally-settled. Equity-settled transactions occur when an entity receives goods or services and settles the payment by issuing equity instruments like shares or share options.

Understanding these distinctions helps maintain compliance with IFRS Consulting guidelines and ensure precise financial reporting standards.

IFRS 2 excludes certain transactions, such as shares issued in a business combination, addressed under IFRS 3, Business Combinations. It also excludes contracts for the purchase of goods under IAS 32 and IAS 39. These exclusions help ensure proper categorization and reporting of specific transactions.

IFRS 3 outlines principles for recognizing and measuring items in a business combination. These include identifiable assets acquired, assumed liabilities, and non-controlling interests identified separately from goodwill. This ensures accurate and transparent financial reporting.

Expert guidance from IFRS Consulting can help adhere to these principles, optimize accounting practices, and comply with financial reporting standards.

The measurement period is the time after the acquisition date when the acquirer can adjust provisional amounts recognized in a business combination. This period allows for accurate and complete financial reporting of the acquisition's impact.

Yes, the Saudi Organization for Certified Public Accountants (SOCPA) has approved a transition plan to align national standards with full IFRS. Non-publicly accountable entities must report under IFRS for SMEs, promoting consistency and transparency in financial reporting.

IFRS 9 defines an equity investment as an instrument meeting the definition of an equity instrument in IAS 32, Financial Instruments: Presentation. This includes any contract that represents a residual interest in an entity's assets after deducting liabilities.

IFRS 13 defines fair value as the price received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This "exit price" concept ensures fair value measurements reflect market conditions.

Under IFRS 13, fair value is measured using assumptions that market participants would use when pricing an asset or liability, considering risk. This market-based approach ensures fair value measurements are accurate and relevant.

IFRS 15 requires revenue to be recognized in a way that depicts the transfer of promised goods or services to a customer, reflecting the consideration to which the entity expects to be entitled. This principle ensures timely and accurate revenue recognition.

Revenue is recognized when an entity satisfies a performance obligation by transferring a promised good or service to the customer. This occurs when the customer gains control of the asset, ensuring precise and timely financial reporting.

Saudi Arabia adopted IFRS 16, effective January 1, 2022, which replaces IAS 17. IFRS 16 requires companies to recognize lease assets and liabilities on their balance sheets, enhancing transparency and consistency in lease accounting.

IFRS 16 introduces a single lessee accounting model, requiring lessees to recognize assets and liabilities for leases longer than 12 months, unless the asset is of low value. This model streamlines lease accounting and ensures comprehensive financial reporting.

IFRS 17, adopted in Saudi Arabia, introduces new elements to the insurance industry, improving human and technological resources, enhancing reporting transparency, and fostering a solid regulator-industry relationship. This standard supports robust and transparent insurance contract reporting.

An insurance contract under IFRS 17 is defined as one where the issuer accepts significant insurance risk from the policyholder by agreeing to compensate them if a specified uncertain future event adversely affects them. This definition ensures clarity and accuracy when reporting insurance contracts.

IAS 36 states that an asset is impaired if its carrying amount exceeds its recoverable amount. In such cases, the entity must recognize an impairment loss, ensuring the asset's value is accurately reflected in the financial statements.

To calculate an asset's impairment, subtract its fair market value from its carrying value (historical cost minus accumulated depreciation). If the fair market value is less than the carrying value, an impairment loss is recorded for the difference. This method ensures accurate reporting of asset values.