Disallowed accounting choices
In this lesson, you'll learn which accounting treatments are mandatory under IFRS for SMEs and why these simplified rules matter for your exams.
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In this lesson
- 0:00 Intangible assets and investment property rules
- 0:10 Development and borrowing cost treatment
- 0:20 Pension accounting simplifications
- 1:01 Financial instruments valuation methods
About this lesson
We cover the key disallowed choices: intangible assets must use cost less amortisation (no revaluation), investment properties require fair value accounting, and development costs are always expensed rather than capitalised. You'll also explore simplified treatments for pensions, where you can use basic methods instead of complex actuarial calculations, and financial instruments, where basic debt is measured at amortised cost and investments at fair value through profit or loss. Understanding these mandatory and prohibited choices is essential for IFRS for SMEs questions in your qualification, ensuring you apply the correct accounting treatment every time.
Duration: 2m
Transcript
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