Making sense of a complex world Accounting for royalty arrangements – issues for media companies

The provisions for embedded derivatives in IAS 39 apply to derivatives embeddedin insurance contracts or financial instruments with discretionary participationfeatures, within the scope of IFRS 4. However, if the embedded derivative is itselfan insurance contract or a financial instrument with a discretionary participationfeature within the scope of IFRS 4, it need not be separated and measured interms of IAS 39.The reason for creating special accounting rules for embedded derivatives is toprevent entities from circumventing the requirement to account for all derivativesat fair value with changes in fair value through profit or loss. Requiring certainembedded derivatives to be separated from their...
Nội dung trích xuất từ tài liệu:
Making sense of a complex world Accounting for royalty arrangements – issues for media companies