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Money market funds are not hedge funds. That's why they are not classified as equity.

Thank you very much for your answers. Greatly appreciate.

Hi Guys
I need an advise on how to account an investment in a Tracker Certificate which is linked to an index. Can it be treated as a derivative?
Thanks
Lindsay

Thank you guys for your inputs.

This is what I was thinking too. Unless JRSB has a different view.
Thank you.

Yes, on the balance sheet of B, there is the loan receivable.

H All Consider the Company structure below: Company A (Parent & investment entity) holds 100% in Company B (considered as a company servicing the group with investment related services) and 100% in Company C. During the year, Company B has given a loan of $100,000 to Company C which is still out...

Hi
A Company was incorporated on 3 Oct 2017 and started operations on 1 May2020. What will be its first reporting period if the Company has a June year end.
Thanks
Lindsay

Thank you very much.

The settlement amount is based on the fair value of the share. That's why it is less than the nominal amount subscribed.

Hi Thank you for your response. Yes, it is classified as a 100% equity. In this class, the Company has only this 1 preference share. The company has paid for the redemption price of $512. If I debit equity with $512, then I will be left with $488 as balance in my balance sheet (1000 less 512). I was...

Hi
I have a one redeemable preference share having a par value of $1,000 (accounted as equity as per IAS32). The share is redeemed at $512. How do we account the "discount on redemption" of $488.
Does it go to PnL as Other Income? And which IFRS treats this issue.
Thanks
Lindsay

Thank you guys. I should go in the way pub_accro suggested.

Both the parent and the subsidiary are on a non going concern basis. I am actually preparing the financial statements of the parent. For eg in the parent balance sheet, there is Investment in subsidiary, at cost $20,000. No impairment was recognised previously. On the subsidiary side, the directors ...

Thank you for your reply. But the investor is preparing its financial statements on a non going concern basis.

Hi. I have an investment in subsidiary which is measured at cost in the seperate financial statements. The investment has never been impaired and as at 31 Dec 2020 (Year end) and not consolidated. The company and the investee are in the process of winding up (non going concern). Given this situation...

Hi. Yes they are POCI assets.
Thank you very much. You are a star!

Sorry for the dalay...I mean closing balance in the balance sheet.

Hi. At end of this year, the ECL allowance balance has decreased compared to last year. Thus there is a reversal of impairment in the PnL. It can be deduced that all the reversal happened in Stages 3. For presentation purposes, can we show a negative ECL balance in stages 3. Is it permissible under ...

Thank you. Very helpful.

Hi Under IFRS 9, when there is change in business model, the financial asset should be reclassified. For instance, given that in the previous business model, the asset was at FVTPL and now with the new business model, the asset should be measured at amortised cost. But can we still use the option to...

As per IFRS 16, when there is a change in cash flows and the modification to the finance lease is not accounted for as a seperate lease, then the lessor should account the modification as per IFRS 9. My issue is how do we calculate the one off gain/loss in Pnl. I have followed the example in the kno...

Thank you very much. The asset is at amortised cost and because of the back to back structure, the Notes are measured also at amortised cost. I think the change in the expected cash flows can justify the remeasurement of the financial liability.

The Company is an SPV, ie the company has issued Notes and the proceeds of the Notes have been used to buy financial assets, like loan receivables. The repayment of the Notes depends on cash received on the assets and according to a waterfall. In the PnL, all profit or loss is sweeped up to the Note...

In the balance sheet, there is a limited recourse liability which is linked to the performance of the assets as stipulated in the legal agreement. On each period end, all profits or losses on the PnL are allocated and recorded in this liability instead of retained earnings. The liability is recogniz...