Search found 66 matches

by Lasa1
13 Mar 2024, 14:21
Forum: IFRS-related topics
Topic: IFRS 16 - Lease expenses
Replies: 2
Views: 51

IFRS 16 - Lease expenses

Hello, Question on lease expenses. Lessee leases printers. The lessor is charging for the lease of the period plus the number of the copies (usage). Usage expense depends on the number copies. I would assume that usage is not a lease expense and therefore the lessee should not include it in the calc...
by Lasa1
26 Jan 2024, 00:24
Forum: IFRS-related topics
Topic: Cessation of depreciation
Replies: 1
Views: 656

Cessation of depreciation

Hello, Can the depreciation be stopped in the below two scenarios: Scenario 1 Legal Entities (LE) A and B belong to the same group. A has some production machines that are not used anymore and will be transferred in few months to legal entity B where they will continue to produce.As equipment is not...
by Lasa1
24 Oct 2023, 09:15
Forum: General accounting and financial reporting discussion
Topic: PP&E : Fixtures & fittings or Movables and fixtures
Replies: 1
Views: 465

PP&E : Fixtures & fittings or Movables and fixtures

Hello,

We are defining the fixed assets groups and wanted to check if " Movables and fixtures" is a general used term in accounting or the right one is "Fixtures and fittings".

We are not English native ..obviously.

Thanks!
by Lasa1
27 Sep 2023, 17:12
Forum: IFRS-related topics
Topic: Feasibility study: Capex or Opex
Replies: 6
Views: 69929

Feasibility study: Capex or Opex

Hello, We are constructing a machine that will help us to improve our production process. At this stage we do not know if this machine will be good enough and therefore will be used in the future. If not, it will be scrapped. Can we capitalize all the hours and materials purchased to construct the m...
by Lasa1
04 Sep 2023, 16:56
Forum: IFRS-related topics
Topic: Unrealized and realized exchange gain/loss
Replies: 3
Views: 16671

Re: Unrealized and realized exchange gain/loss

Thank You Marek. Actually, thinking further this is just the revaluation of an accrual(same amount in transactional currency but different one in Local one due to FX) and so it should be booked as Unrealized right?
Thanks
by Lasa1
30 Aug 2023, 19:30
Forum: IFRS-related topics
Topic: Unrealized and realized exchange gain/loss
Replies: 3
Views: 16671

Unrealized and realized exchange gain/loss

Hello, My company is implementing a new ERP and a third-party company is helping us with the implementation of it. As per cloud computing accounting a portion of this implementation services can be capitalized as an intangible asset and a portion has to be expensed. This third party is billing in fo...
by Lasa1
17 Mar 2023, 13:12
Forum: General accounting and financial reporting discussion
Topic: Consolidation of branches
Replies: 5
Views: 13377

Consolidation of branches

Hello
Can someone guide me to basic examples to learn how to consolidated the branches in the "mother branch"?
Thanks
Regards
by Lasa1
18 Nov 2022, 12:08
Forum: IFRS-related topics
Topic: Customer Advances Payments
Replies: 3
Views: 1517

Re: Customer Advances Payments

Thanks Marek! You said that “issuing a proforma invoice may have to be recognized as Dt Receivable and Ct Contract liability if the customer has a contractual obligation liability to pay that advance”. Does it mean that if such obligation exists a proforma invoice will generate accounting entries as...
by Lasa1
11 Nov 2022, 10:21
Forum: IFRS-related topics
Topic: Customer Advances Payments
Replies: 3
Views: 1517

Customer Advances Payments

Hello, The Company Policy is to issue proforma invoices to allow customers paid in advance. I have two questions: 1. Is it mandatory in European countries to issue a proforma invoice to receive an advance payment from the customer? 2. If seller issues proforma invoices would be the below accounting ...
by Lasa1
20 Oct 2022, 21:14
Forum: IFRS-related topics
Topic: Exchange Gain and Losses on Receipt Not billed transactions
Replies: 5
Views: 7397

Exchange Gain and Losses on Receipt Not billed transactions

I have a question on the revaluation for currency exchange rates on intermediate account Received-Not -Billed (RNB) which is reported in Liabilities in the Balance Sheet. When we receive stock or a service (1) we debit inventory (if stock) or expense account (if service) and (2) credit RNB. When the...
by Lasa1
28 Sep 2022, 17:15
Forum: IFRS-related topics
Topic: Lessee invoice to Lessor for Lease incentives
Replies: 1
Views: 2789

Lessee invoice to Lessor for Lease incentives

Lessee issued an invoice end of the month (M1) to the Landlord for leasehold improvements to be reimbursed (lease incentives) Invoice was booked as follows DT Accounts Receivable CT Lease Liability Cash will only be paid beginning of the following month (M2). For M1 accounting in Lessee Books, is it...
by Lasa1
28 Sep 2022, 16:30
Forum: General accounting and financial reporting discussion
Topic: Lease Incentives - Invoice issued but cash not receipt
Replies: 1
Views: 2788

Lease Incentives - Invoice issued but cash not receipt

Hello, In order to collect the cash for a lease incentive to be reimbursed from the landlord we (lessee) had issue an invoice and book it as follows: DT Accounts Receivable CT Lease Liability Since it is month end, cash will be only received next month. Should we change the coding for the invoice? T...
by Lasa1
08 Jul 2022, 19:48
Forum: IFRS-related topics
Topic: IAS 16 - Key component of equipment used to replace a broken one
Replies: 1
Views: 2159

IAS 16 - Key component of equipment used to replace a broken one

Hello, Some machines required the use of cards to work. Without the card, the machine cannot work, it is key component of the machine. When a card is broken, we replace the card by a new one and we repair the broken one that will be used in another machine. Those cards meet our capital threshold and...
by Lasa1
16 Jun 2022, 16:06
Forum: IFRS-related topics
Topic: IFRS16 - Lease Incentives
Replies: 20
Views: 9666

Re: IFRS16 - Lease Incentives

Agree that this community literature should be accepted! :) And I also have a second though : IFRS 16 states the lease liability at the lease commencement date includes all unpaid fixed payments less any leases incentives receivable para (27). We did not include it, so this could be treated as an er...
by Lasa1
16 Jun 2022, 14:41
Forum: IFRS-related topics
Topic: IFRS16 - Lease Incentives
Replies: 20
Views: 9666

Re: IFRS16 - Lease Incentives

They asked us to provide them with the documentation we used / read to support our accounting proposal.
by Lasa1
16 Jun 2022, 14:25
Forum: IFRS-related topics
Topic: IFRS16 - Lease Incentives
Replies: 20
Views: 9666

Re: IFRS16 - Lease Incentives

yes.... auditors asked... and I am not able to find guidance for this example.
by Lasa1
15 Jun 2022, 17:30
Forum: IFRS-related topics
Topic: IFRS16 - Lease Incentives
Replies: 20
Views: 9666

Re: IFRS16 - Lease Incentives

Hello,
I am coming back to the question on lease incentives received after the commencement of the lease.
Is there any paragraph in IFRS16 or any other IFRS standard that I could use to support the accounting treatment provided by Leo?

Thanks
Regards
Cecilia
by Lasa1
15 Jun 2022, 09:00
Forum: IFRS-related topics
Topic: Overstated liability due to prior years errors
Replies: 5
Views: 2742

Re: Overstated liability due to prior years errors

Thanks!
If no material, that’s clear: I will use the the same financial statement lines through which the error originated
If material, it still unclear to me. Does it mean that I have to correct prior years' financial statements even though they have been audited, financial reports published?
by Lasa1
14 Jun 2022, 19:28
Forum: IFRS-related topics
Topic: Overstated liability due to prior years errors
Replies: 5
Views: 2742

Overstated liability due to prior years errors

Liability balance for “received not billed” materials & services is overstated due to duplicated confirmation of receptions of materials and services done in prior years. Each time there is a confirmation of receipt, the system debits expense or inventory accounts and credits the liability accou...
by Lasa1
25 May 2022, 10:56
Forum: IFRS-related topics
Topic: IFRS 16 – Lease Negotiations after the commencement of the Lease
Replies: 5
Views: 2371

Re: IFRS 16 – Lease Negotiations after the commencement of the Lease

Yes, by expense I meant record a gain in the P&L. I understand that you suggest to reduce the leasehold improvements for 20 LC because you assume that the improvements is for a Lessor's asset, right? And so, in the case that the improvement would be for a Lessee's asset you would have suggested ...
by Lasa1
25 May 2022, 09:50
Forum: IFRS-related topics
Topic: IFRS 16 – Lease Negotiations after the commencement of the Lease
Replies: 5
Views: 2371

IFRS 16 – Lease Negotiations after the commencement of the Lease

Hello, ABC (Lessee) enters in a 15-year lease agreement with DEF (Lessor) on April 2022. The building is brand new. In order to meet the needs of the Lessee, the Lessor has authorized the Lessee to make improvements on the building. The Lessee built some of the leasehold improvements at the same tim...
by Lasa1
20 May 2022, 08:42
Forum: IFRS-related topics
Topic: IFRS16 - Lease Incentives
Replies: 20
Views: 9666

Re: IFRS16 - Lease Incentives

Thanks a lot! It is clear now
by Lasa1
18 May 2022, 11:23
Forum: IFRS-related topics
Topic: IFRS16 - Lease Incentives
Replies: 20
Views: 9666

Re: IFRS16 - Lease Incentives

Hi, I might have created some confusion by sending wrong files on my post on Mai 16,so I will try to clarify my question: On April 1st, Company ABC moved to a new building and entered in a lease agreement. ABC performed some works specifically needed for its activity and as per the contract, Lessor ...
by Lasa1
17 May 2022, 14:39
Forum: IFRS-related topics
Topic: IFRS16 - Lease Incentives
Replies: 20
Views: 9666

Re: IFRS16 - Lease Incentives

Thank You Leo. The schedules sent were wrong. I did the calculation as if payment was in arrears.
I sent them again. The updated file is how I understand we should have prepare the schedule if we would have known about the 2nd reimbursment ( expected 1st of June in the file).
by Lasa1
16 May 2022, 21:27
Forum: IFRS-related topics
Topic: IFRS16 - Lease Incentives
Replies: 20
Views: 9666

Re: IFRS16 - Lease Incentives

Thank You Marek, Leo. Still not cleared..let me give some more background (note that figures and terms are for illustration purposes). Lease agreement states that Lessor will reimburse 0.008 euros per meter to the Lessee on leasehold improvements. Before the commencement of the lease, the total cost...
by Lasa1
11 May 2022, 09:26
Forum: IFRS-related topics
Topic: IFRS16 - Lease Incentives
Replies: 20
Views: 9666

IFRS16 - Lease Incentives

Hi On April 1st, Company ABC moved to a new building and entered in a lease agreement. ABC performed some works specifically needed for its activity and lessor reimbursed part of it at the commencement of the lease. Reimbursement was treated as a lease incentive. Now, one month later, the lessor wil...
by Lasa1
28 Apr 2022, 22:27
Forum: IFRS-related topics
Topic: IFRS16 : Depreciation Leasehold Improvements
Replies: 2
Views: 1168

IFRS16 : Depreciation Leasehold Improvements

Hello, Company ABC is moving to a new building that it will lease and so it will activate a Right of Use. The lease agreement is for 15 years. Date of move is April1st 2022. ABC will occupy the whole building and no sharing it with any other company. To adapt the building to ABC needs, ABC has enhan...
by Lasa1
04 Apr 2022, 17:32
Forum: IFRS-related topics
Topic: Sale of Fixed Asset that has been impaired
Replies: 2
Views: 1113

Sale of Fixed Asset that has been impaired

Hi We are going to sell a fixed asset that has been impaired. Shall we reverse the impairment at the time of the sale? Illustrative example: 1.Asset Gross Value 100$. Accum.Depreciated 30$ .NBV at the time of the sale 70. 2.This asset was impaired in the past for 20 Accounting entry was Dt expense 2...
by Lasa1
17 Mar 2022, 09:09
Forum: IFRS-related topics
Topic: Consulting hours to implement MS Teams
Replies: 16
Views: 3132

Consulting hours to implement MS Teams

Hello, We have recorded the consulting hours to implement Teams (Microsoft Communication platform) as an intangible asset. The cost is above our threshold (cape vs non capex) and Teams will be used much more than one year. Is it right to book it as an intangible asset ? I would say so, but i prefer ...