Search found 11 matches

by Roger84
07 Jun 2022, 13:04
Forum: IFRS-related topics
Topic: How to realize COGS in agriculture when harvest and sales continues over a longer amount of time
Replies: 8
Views: 2642

Re: How to realize COGS in agriculture when harvest and sales continues over a longer amount of time

what kind of expenditures are we talking about that relate to several harvests but at the same time don't concern bearer plants? --> Example: Chili plants which can last for about one to two years max. They would incur maintenance, tilling, labor, manure etc. And are those batches ready to be sold a...
by Roger84
07 Jun 2022, 11:14
Forum: IFRS-related topics
Topic: How to realize COGS in agriculture when harvest and sales continues over a longer amount of time
Replies: 8
Views: 2642

Re: How to realize COGS in agriculture when harvest and sales continues over a longer amount of time

They might but I wonder more about the part for the harvest: How do I handle my accumulated cost under work in progress for the farm for this specific harvest if I harvest in several batches. I don't want to move 100% of the incurred WIP to inventory (for the first harvest as I know there will be mo...
by Roger84
05 Jun 2022, 22:52
Forum: IFRS-related topics
Topic: How to realize COGS in agriculture when harvest and sales continues over a longer amount of time
Replies: 8
Views: 2642

Re: How to realize COGS in agriculture when harvest and sales continues over a longer amount of time

Hi Leo, sorry this is my wording fault. I meant to write: - incurred costs are all accumulated under work in progress - first harvest: how can we determine the value of the COGS if we know that there is going to be a continuous harvest going forward? We would like to avoid recognizing 100% of the WI...
by Roger84
03 Jun 2022, 10:21
Forum: IFRS-related topics
Topic: How to realize COGS in agriculture when harvest and sales continues over a longer amount of time
Replies: 8
Views: 2642

How to realize COGS in agriculture when harvest and sales continues over a longer amount of time

Background: Company is in farming and has certain crops which are harvested on a continuous basis (berries, beans, chilies, peppers etc.). Most costs are incurred before the first harvest starts but if we then recognize all the COGS at the first harvest there wouldn't be any left for subsequent harv...
by Roger84
27 Sep 2021, 11:53
Forum: IFRS-related topics
Topic: Asset received for free usage from parent who remains with the ownership
Replies: 10
Views: 2694

Re: Asset received for free usage from parent who remains with the ownership

Thanks for your contributions so far.

Happy to receive further comments from people who had such a case in reality and how they treated it?
by Roger84
26 Sep 2021, 19:22
Forum: IFRS-related topics
Topic: Asset received for free usage from parent who remains with the ownership
Replies: 10
Views: 2694

Re: Asset received for free usage from parent who remains with the ownership

This is what we are figuring out at the moment. From a tax perspective it would be the best to having it as an equity contribution in the subsidiary (there you recognize it as an asset which will be depreciated over 4 years when the business eventually will make profits and will be able to match the...
by Roger84
25 Sep 2021, 17:49
Forum: IFRS-related topics
Topic: Asset received for free usage from parent who remains with the ownership
Replies: 10
Views: 2694

Re: Asset received for free usage from parent who remains with the ownership

In this case the usage will be much likely for the lifetime of the vehicle. But no price has been agreed as it can be used for free and it will generate revenues for the business. We could argue that it is as well used for R&D purposes at this stage of the company as it is a startup. As it comes...
by Roger84
24 Sep 2021, 08:08
Forum: IFRS-related topics
Topic: Asset received for free usage from parent who remains with the ownership
Replies: 10
Views: 2694

Asset received for free usage from parent who remains with the ownership

Background: Related party (ultimate parent) provides a vehicle (material value to the business) to be used for free by the subsidiary in a different country. The ultimate parent remains the owner of this asset. The asset value is known and shown on the import declaration form. The full value of thi...
by Roger84
09 Nov 2020, 12:30
Forum: IFRS-related topics
Topic: IFRS 16 Lessor accounting: Variable payments based on consumption
Replies: 7
Views: 1632

Re: IFRS 16 Lessor accounting: Variable payments based on consumption

Indeed I tend to the solution that this is a sales contract and hence doesn't contain a lease as per the elements of this specific contract. I am therefore looking now at IFRS 15 which is more appropriate. If someone thinks differently please let me/us know. Kind regards and thanks for your thoughts.
by Roger84
08 Nov 2020, 20:17
Forum: IFRS-related topics
Topic: IFRS 16 Lessor accounting: Variable payments based on consumption
Replies: 7
Views: 1632

Re: IFRS 16 Lessor accounting: Variable payments based on consumption

Dear exIFRS, pub_acco, JRSB and Marek Thanks for your response. It is in fact lessor accounting which is of interest to me. You have a company which produces electricity which is sold to the grid. There is no minimum lease payment. 100% variable depending on the production of the hydro power plant. ...
by Roger84
06 Nov 2020, 08:44
Forum: IFRS-related topics
Topic: IFRS 16 Lessor accounting: Variable payments based on consumption
Replies: 7
Views: 1632

IFRS 16 Lessor accounting: Variable payments based on consumption

Dear community, Can you confirm my assumption that the underlying lease from a lessors perspective is absolutely simple or do I miss some parts? Accounting for the below example: Asset = Hydro Power plant remains as is and is accounted for as a "normal" assets with its respective depreciat...