The Practical IFRS Pack
To: YOU working with IFRS — or trying to make sense of it.
Inside this pack, you’ll find a curated selection of the most helpful tools for
applying IFRS in real life — not just theory.
It includes:
Checklists for IAS 16, IAS 36 and IFRS 9
IFRS 15 journal entries template
Two visual cheatsheets to quickly clarify complex topics:
→ Accounting When the Groups Change
→ Monetary vs Non-Monetary Items
This pack isn’t static — I’m continuously expanding it as I publish new tools
and receive feedback from thousands of professionals around the world.
Use this pack to make your IFRS work simpler, faster, and more accurate —
whether you're studying, reporting, or training others. Bookmark it, keep it
nearby, and refer to it whenever standards get tricky.
And most of all — enjoy putting IFRS into practice with clarity.
Silvia, www.CPDbox.com
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IAS 16 Property, Plant and Equipment
Compliance checklist
1 Recognition
Criteria
Will the asset provide future economic benefits?
Can the cost be measured reliably?
2 Purchase price includes import duties and non-
refundable taxes
Directly attributable costs included (e.g. site
Initial preparation, installation, etc.)
Measurement Dismantling/restoration obligations estimated and
added
For exchanges: fair value used unless not measurable
or lacks commercial substance
3 Subsequent
Routine maintenance expensed
Replacement of significant parts: old part
derecognized, new part capitalized
Expenditures Major inspections/overhauling capitalized and
depreciated separately
4 Measurement
Cost model OR revaluation model selected and
applied consistently
after Revaluations performed regularly (if applicable)
Recognition Entire class of assets revalued (not just selected
items)
5 Method reflects usage pattern (straight-line, units of
production, diminishing balance)
Useful life and residual value reviewed at least
Depreciation annually
Significant components depreciated separately
Changes treated as accounting estimates (IAS 8)
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IAS 16 Property, Plant and Equipment
Compliance checklist
6 Impairment
Review for impairment indicators (IAS 36)
Impairment test when indicators exist (refer to IAS 36)
7 Derecognition
Derecognize on disposal or when no future benefits
expected
Gain/loss = Proceeds - carrying amount (report in P/L)
8 Measurement basis (cost or revaluation)
Depreciation methods and useful lives or
depreciation rates used
Gross carrying amount and accumulated depreciation
at the beginning and end of the reporting period
Reconciliation of carrying amount (additions, disposals,
Disclosure revaluations, depreciation, impairment, etc.)
Requirements Restrictions on title and PPE pledged as security
Summary Expenditures recognized in the carrying amount of
PPE in the course of its construction
(for each class of PPE) Contractual commitments for acquisition of PPE
Compensations from third parties (e.g. for loss...)
For revalued assets:
Date of revaluation and use of independent valuer
Carrying amount under cost model
Revaluation surplus movement (OCI, equity)
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IAS 36 Impairment of Assets
Practical checklist
1 PPE (IAS 16), intangible assets (IAS 38), investment
property under cost model (IAS 40), right-of use assets
(IFRS 16), goodwill (IFRS 3), subsidiaries (IFRS 10),
Scope: associates (IAS 28), joint ventures (IFRS 11 )
Does IAS 36 Exclude: inventories, deferred tax assets, contract
assets (IFRS 15), employee benefits (IAS 19), financial
apply? assets, investment property at fair value, biological
assets, insurance contract assets, non-current assets
held for sale (IFRS 5)
2 External:
Market value of assets declined significantly
Market interest rates increased → higher discount
rate
Adverse economic, legal, regulatory, or
technological changes
Are there Market cap < net asset value of entity
impairment Internal:
indicators?
Asset is obsolete or physically damaged
Plans to discontinue, dispose of or restructure an
asset/business
Poor economic performance vs forecasts
If YES → Go to impairment test
If NO → No further action (except for mandatory
testing assets below)
3 Annual
Mandatory
Goodwill
Intangible assets with indefinite useful life
Impairment test: Intangible assets not yet available for use
If YES → Go perform annual impairment test
Is the asset one regardless of indicators/triggers
of these? If NO → Test only if indicators exist
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IAS 36 Impairment of Assets
Practical checklist
4 Fair value less Costs of Disposal
Use IFRS 13 Fair Value Measurement for guidance
Estimate Deduct direct disposal costs (legal fees, taxes,
Recoverable removal, etc.)
Amount - Value in Use
Estimate future cash flows (max 5 years forecast +
Higher of: extrapolation
Use reasonable, supportable assumptions
Apply pre-tax discount rate reflecting market risks
TIP: Be consistent → discount inflation-adjusted cash
flows with nominal rate / real cash flows with real rate
5 Determine
Is recoverable amount < impairment loss?
If NO → No impairment loss
Impairment Loss If YES → The difference = impairment loss; recognize
in profit or loss, or OCI if asset is revalued in line with
IAS 16/IAS 38
6 Is the asset
Use CGU when asset does not generate independent
cash inflows
a part of CGU Allocate corporate assets & goodwill appropriately
(Cash-Generating Maintain consistency across periods
Unit)? Document CGU assumptions and allocations
7 First reduce goodwill
Then reduce other CGU assets pro rata
Allocate Do not reduce any asset below:
Impairment Loss FV less costs of disposal
Value in use
Zero
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IAS 36 Impairment of Assets
Practical checklist
8 Reversal of
Impairment Loss
Have the impairment indicators reversed?
Re-estimate recoverable amount
- reassess at Cannot reverse impairment of goodwill
each reporting Reverse only to the extent the asset’s carrying amount
date: would not exceed depreciated historical cost
9 For each class of assets:
Amount of impairment losses & reversals in P/L
Line item in P/L where recognized
Impairment losses on revalued assets in OCI
Disclosure Events leading to recognition/reversal
Requirements Recoverable amount basis: FV less costs or value in use
Summary Discount rates used (if value in use calculated)
(selected)
For CGUs:
Amount of impairment losses & reversals in P/L
Basis for determining recoverable amount
Key assumptions used in cash flow projections
Growth rate used and justification
Discount rate used
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IFRS 9 Financial Instruments
Practical checklist
1 Scope:
All types of financial instruments except:
Exclude: entity’s own equity instruments; interests in
subsidiaries, associates, or joint ventures (refer to IFRS
Does IFRS 9 10, IAS 27, IAS 28); rights and obligations resulting
apply? from leases (IFRS 16), insurance contracts (IFRS 17),
employee benefit plans (IAS 19) and share-based
payments arrangements (IFRS 2).
2 Initial
Recognition
Are financial instruments recognized only when the
entity becomes a party to the contractual provisions?
3 Have you applied both:
Business model test;
Classification of SPPI test (solely payments of principal and interest)?
Financial Assets Based on the above, are assets correctly classified as:
At amortized cost;
At FVOCI;
At FVTPL (default or voluntary designation)?
If ESG-linked cash flows exist, have you assessed
consistency with SPPI rules?
4 Are financial liabilities correctly classified as:
Measured at amortized cost;
Classification of FVTP (including derivatives)?
Financial Have you accounted separately for:
Liabilities Financial guarantee contracts;
Loan commitments at below-market rate;
Contingent consideration (IFRS 3)?
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IFRS 9 Financial Instruments
Practical checklist
5 Financial assets:
Is the asset classified at FVTPL?
Initial YES → Expense transaction costs immediately
Measurement NO → Add transaction costs to the initial carrying
amount
Can the fair value be reliably determined?
YES → Use quoted prices or valuation techniques
based on observable inputs (refer to IFRS 13)
NO → Consider using cost only if it’s the best
estimate of fair value at initial recognition (rare)
Financial liabilities:
Is the liability classified at FVTPL?
YES → Expense transaction costs immediately
NO → Add transaction costs to the initial carrying
amount
Special considerations:
Trade receivables without significant financing
component → At transaction price
Financial assets/liabilities acquired in a business
combination → At fair value on acquisition date
Hybrid financial instruments → Separate embedded
derivatives if required and measure each part
appropriately (see below)
6 Subsequent
Financial assets:
Classified at amortized cost:
Measurement Use effective interest method (EIR)
Recognize interest income in profit or loss using EIR
(part 1) Assess expected credit loss (see below)
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IFRS 9 Financial Instruments
Practical checklist
6 Subsequent
Financial assets:
Debt instruments classified at fair value through
other comprehensive income (FVOCI):
Measurement Recognize interest income in profit or loss using EIR
Assess expected credit loss (see below), recognize
(part 2) in profit or loss
Recognize fair value changes in OCI
On derecognition, reclassify cumulative gains or
losses from OCI to profit or loss.
Equity instruments classified at fair value through
other comprehensive income (FVOCI):
Recognize all gains or losses in OCI, do not
reclassify to profit or loss (no recycling)
Recognize dividends in profit or loss
Classified at fair value through profit or loss (FVTPL):
Recognize all changes in fair value in profit or loss
Financial liabilities:
Classified at amortized cost:
Use effective interest method (EIR)
Recognize interest expense in profit or loss using EIR
Classified at fair value through profit or loss (FVTPL):
Recognize all changes in fair value in profit or loss,
except:
For own credit risk on designated liabilities →
recognize in OCI + no recycling to profit or loss
on derecognition
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IFRS 9 Financial Instruments
Practical checklist
7 Impairment of Is the financial asset subject to ECL model?
YES: trade receivables, contract assets (IFRS 15),
lease receivables (IFRS 16), debt instruments at
Financial Assets amortized cost, debt instruments at FVOCI
NO: Equity instruments at FVOCI, all financial
(Expected Credit assets at FVTPL
Loss) Which approach applies?
Default: General (3-stage) model
Mandatory for trade receivables without significant
financing component, lease receivables and
contract assets: Simplified model
If using general model, have you identified stage?
Stage 1: Performing - 12-month ECL
Stage 2: Significant credit deterioration - lifetime
ECL
Stage 3: Credit impaired - lifetime ECL, interest on
net carrying amount
Are you using forward-looking information?
Macro factors (e.g. unemployment rate, GDP)
Multiple scenarios considered
Consistent with other forecasts used internally
Have you estimated key ECL components?
ECL = PD (probability of default) x EAD (exposure at
default) x LGD (loss given default)
If using simplified model:
Recognize lifetime ECL from day 1
Use provision matrix or historical loss data
Group receivables based on risk characteristics
Have you reviewed for write-offs?
Asset is written off when no reasonable expectation
of recovery
Gross carrying amount and loss allowance reduced
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IFRS 9 Financial Instruments
Practical checklist
8 Embedded
Have you identified any contracts that combine a
non-derivative host with a derivative feature?
Have you reviewed contracts such as convertible
derivatives bonds, structured loans, lease or service contracts
with FX/inflation clauses?
If the host contract is a financial asset within the
scope of IFRS 9 → Do not separate the embedded
derivative; treat the whole instrument under IFRS 9
Is the host contract a financial liability or a non-
financial contract (e.g. lease, service)? → Continue
below
Are the separation criteria met?
Embedded derivative not closely related to the host
contract
Embedded derivative meets the definition of a
derivative on its own
Embedded derivative can be measured reliably
YES: Separate the embedded derivative and account
for it under IFRS 9 + measure the host contract
under the appropriate standard (e.g. IFRS 16, IAS 38)
NO: Do not separate + account for entire hybrid
contract based on classification of host
Embedded derivative measured at fair value? (if not
possible, measure entire hybrid contract at FVTPL)
9 Hedge
Is hedge accounting formally elected (it is optional)?
Is hedging instrument an eligible derivative (or non-
derivative for FX risk?)
Accounting
Is the hedged item a recognized asset/liability, firm
commitment, or forecast transaction?
(part 1) Did you prepare proper hedge accounting
documentation at the inception?
Include: documentation of relationship and risk
management strategy, identification of hedged risk
and instruments, documentation of effectiveness
assessment method
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IFRS 9 Financial Instruments
Practical checklist
9 Hedge
Are the hedge effectiveness criteria met?
Economic relationship, value changes not
dominated by the credit risk, hedge ratio aligned
Accounting with risk management
Monitor effectiveness on an ongoing basis and
(part 2) rebalance the hedge ratio (if needed)
Discontinue hedge accounting if eligibility or purpose
no longer holds
10 Related IFRS IAS 32 Financial Instruments: Presentation
Defines financial instruments, distinction between
liabilities and equity
Accounting
IFRS 7 Financial Instruments: Disclosures
Standards
Disclosure of risks, fair values, impairment and
hedge accounting
Cross-check IFRS 13 Fair Value Measurement
Fair value measurement principles for all IFRS
IFRS 15 Revenue from Contracts with Customers
Contract assets subject to ECL under IFRS 9
IFRS 16 Leases
Lease receivables subject to ECL under IFRS 9
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IFRS 15 Revenue from Contracts
with Customers
Journal Entries Template
1 Contract with a customer
is signed.
No entry.
2 Advance payment is
received from a customer.
Debit: Bank account
Credit: Contract liability
3
Performance obligation is
satisfied AND advance Debit: Contract liability
payment was received Credit: Profit or loss - revenue
from a customer
4
Performance obligation is
satisfied AND advance Debit: Contract asset
payment was NOT Credit: Profit or loss - revenue
received from a customer
5
Performance obligation is
satisfied AND invoice to a Debit: Trade receivables
customer is issued at the Credit: Profit or loss - revenue
same time
6 Revenue is recognized
based on progress towards
Debit: Contract assets
Credit: Profit or loss - revenue
completion
7 Invoice issued for the work
done (if < than revenue
Debit: Trade receivables
Credit: Contract asset
recognized over time)
8 Payment received from
a customer for the goods,
Debit: Bank account
Credit: Refund liability*
but with a right of return
*Assess probability of return
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IFRS 15 Revenue from Contracts
with Customers
Journal Entries Template
9 Goods delivered to the
customer, but with right of
Debit: Asset - right to recover goods
Credit: Inventories*
return within XY days
*Assess probability of return
10 Revenue recognized when
right of return expires (see
Debit: Refund liability
Credit: Profit or loss - revenue
entry n. 8)
11 Cost of sales recognized
when right of return
Debit: Profit or loss - cost of sales
Credit: Asset - right to recover goods
expires (see entry n. 9)
12 Customer decided to
return goods (see entry n.
Debit: Refund liability
Credit: Bank account
8) - refund payment
13 Customer decided to
return goods (see entry n.
Debit: Inventories
Credit: Asset - right to recover goods
9) - receipt of goods
14 Costs to fulfil a contract
with a customer that meet
Debit: Asset - contract costs
Credit: Payables / bank account / cash*
criteria of IFRS 15
*Depending on payment method
15 Amortization of costs to
fulfil a contract (see entry
Debit: Profit or loss - amortization of
contract costs
n. 14) Credit: Asset - contract costs
16
Revenue recognition when
there is a significant Debit: Trade receivables*
financing component in the Credit: Profit or loss - revenue*
contract *At present value, using appropriate discount rate (IRR)
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IFRS 15 Revenue from Contracts
with Customers
Journal Entries Template
17
Interest revenue on
receivables - significant Debit: Trade receivables
financing component (see Credit: Profit or loss - interest income*
entry n. 16) *Using appropriate discount rate (IRR)
18
Expected credit loss
Debit: Profit or loss - ECL allowance
allowance on contract
assets and assets related to Credit: Contract asset or asset - contract
costs to fulfil a contract costs
Bonus Tip:
When to use trade receivable / contract asset / contract liability?
Have you issued an invoice to your customer?
Have you satisfied a performance obligation?
Receivable Contract asset Contract liability
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Quizzes and certificates of completion
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Accounting when the groups change
I. Acquiring more shares - if control is:
Retained of Acquired of Acquired of
existing existing existing
subsidiary associate/JV other investment
Adjust owner‘s equity Derecognize previous investment with gain
or loss on deemed disposal
Keep preparing the Recognize previously owned share at fair
consolidated value
financial statements
as before Start preparing the consolidated financial
statements
II. Disposing of shares - if control is:
Retained of Lost and Lost and
existing associate/JV other investment
subsidiary is retained is retained
Adjust owner‘s equity Recognize gain or loss on disposal
Discontinue preparing the consolidated
Keep preparing the financial statements
consolidated
If associate or JV is acquired => start
financial statements
equity method
as before
If other investment is acquired => apply
IFRS 9 Financial Instruments
Monetary or Non-monetary?
Assets Equity and Liabilities
Item
Item Character Item Character
Property, plant
and equipment
Non-monetary Equity
Intangible assets Non-monetary
Non-monetary Share capital
(Including goodwill) (different practices)
Investments in Other components
Non-monetary Non-monetary
associates of equity
Equity investments
(e.g. shares)
Non-monetary Liabilities
Investments in debt Provisions for
Monetary Monetary
securities employee benefits
Net investment in
Monetary Lease liability Monetary
the lease
Deferred tax
Biological assets Non-monetary It depends
liability
Bank and other
Deferred tax asset It depends Monetary
loans
Inventories (incl.
Non-monetary Accruals Monetary
allowances)
Contract assets Contract liabilities
Monetary Non-monetary
(IFRS 15) (IFRS 15)
Trade receivables
Monetary Deferred income Non-monetary
(incl. allowances)
Other receivables
Monetary Trade payables Monetary
settled in cash
Advances and
It depends Advances received It depends
prepayments
Deposits and bank Current income tax
Monetary Monetary
accounts liability
Cash Monetary
