Search found 5 matches

by alliterationofk
28 Jun 2021, 12:04
Forum: IFRS-related topics
Topic: Borrowing Costs - Loan taken to construct a building was waived off and can it be set off against the asset?
Replies: 3
Views: 2058

Re: Borrowing Costs - Loan taken to construct a building was waived off and can it be set off against the asset?

The company constructing this building is a parent company and and they have 100% control of a subsidiary whose that owns, among many things, a piece of land which was pledged for the loan taken out to construct the building. The parent company defaulted on some payments to the bank and hence the ba...
by alliterationofk
26 Jun 2021, 16:21
Forum: IFRS-related topics
Topic: Borrowing Costs - Loan taken to construct a building was waived off and can it be set off against the asset?
Replies: 3
Views: 2058

Borrowing Costs - Loan taken to construct a building was waived off and can it be set off against the asset?

Hi, I would like to if the accounting treatment I've applied for a loan taken to construct a building is correct. Scenario: A loan was taken out to construct a building amounting to say 1 Million USD. The time period to construct it is 2 years. Interest is at 5% p.a.. Interest payments are charged t...
by alliterationofk
15 Feb 2021, 11:15
Forum: IFRS-related topics
Topic: IFRS 9/IFRS 16 - Security Deposit on Rental Agreement
Replies: 5
Views: 19669

Re: IFRS 9/IFRS 16 - Security Deposit on Rental Agreement

It is a security deposit which will be repaid at the end of the lease term and doesn't carry any interest cost. So this should be treated as an other financial asset and amortized? If yes, the interest rate multiplied by the present value of the deposit every year should be treated as a interest inc...
by alliterationofk
15 Feb 2021, 08:24
Forum: IFRS-related topics
Topic: IFRS 9/IFRS 16 - Security Deposit on Rental Agreement
Replies: 5
Views: 19669

IFRS 9/IFRS 16 - Security Deposit on Rental Agreement

Hi, I have a question related to the treatment of a lease rental security deposit pertaining to the standards IFRS 9 / IFRS 16. The lessee leased an office space for a period of 3 years and the value of lease meets the definition of "low value assets" as per IFRS 16 (lease payments lesser ...