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thanks sir. You are the best

If a subsidiary has bank sweep arrangement with parent such that all bank balances of subsidiary by the end of each day, transfer to parent bank account via sweep agreement signed by both parties. And subsidiary is getting 2% pa as interest income in return. If subsidiary has any payment, bank will ...

thanks

Yes you are right. I didn't notice the difference between two amounts. :) I am doing consolidation in Excel and every time i am passing adjustment entry in conso books to record share of profit of associate: For current year effect, Investment in associate XXX Share of associate profit for the year ...

Yes sold for nothing because the amount is not big enough.
Secondly, impact on consol is nothing except for the entry passed for disposal in standalone FS.

Please confirm ! thanks

Hi,

I want to confirm accounting entries for disposal of associate in full. ( assume at the day 1 of the year)

In standalone FS,

Loss on disposal of associate ..........Debit
Investment in associate - Cost ........Credit

In Conso FS,

No impact.

Thanks for the help

Thanks for the comprehensive response and valuable expert opinion.

Thanks for your response. You are right the post lengthy enough. Let me jot down in few lines. Keeping in view of scenario described in my post: If you leased assets ownership is transferred at end of lease term to the leasee and treated as finance lease: What will be leasee accounting treatment? Wh...

Thanks for the excellent response and analysis. The following chart is relevant: Group Company A (landlord)------Group Company B (tenant) -----Third party (sub-tenant) Between Group Company A and Group Company B, there is inter-company lease agreement based on the mutually agreed terms and condition...

@dear group members your expert opinion needed. Thanks

Thanks for the excellent response and analysis. The following chart is relevant: Group Company A (landlord)------Group Company B (tenant) -----Third party (sub-tenant) Between Group Company A and Group Company B, there is inter-company lease agreement based on the mutually agreed terms and condition...

Thanks for your valuable inputs. I will apply the same in my case. After reading above, i have following additional questions: Continuing the prior scenerio: 1) Yes, in that case, our company is in sub-lease situation (we are renting out it to external third party). This is understood that we will r...

There is a inter-company long term lease agreement between two group companies. Leased assets includes building, plant & machinery and tools and equipment etc. For the sake of simplicity, it was agreed between the two parties to charge rent equal to the amount of depreciation incurred by the own...

Thanks for your valuable comments.

Hi experts, Hope you guys are doing well? I have one query regarding IFRS-16. I have understanding of how to calculate Right of Use and lease liabilities. But what will happened when subsequent to the year-end (post-audit), rental of a property is significantly different that what is agreed and used...

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We all are very thankful to admin for creating such a useful platform. Hats off to him and his team! @marekmuc

Samad (ACA, ACPA, CICA, APFA)

Thanks sir for your expert opinion.

Yes Sir, You are right these are not easy topics for beginners like me. Sir, I have checked and used excel file, found it very useful. You are great guy with excellent knowledge and expertise. Much appreciated Sir. You are my teacher and mentor. I found following from this file: CTA is basically cur...

Yes sir you are right. Let me put some numbers because i am just a beginner level For example, there is Euro interest charged by parent company A (GBP) on the Euro loan given to foreign subsidiary company B (Euro). Such inter-company interest income and expense is eliminated at the time of consolida...

I will do elimination on which basis? like interest income and interest expense whichever is higher or less?

Hi Sir,

Thanks for your quick response.

Sir I am from United Arab Emirates and working in a private company.

First of all, thanks for creating and maintaining this great platform of accounts and finance professionals. Sir, here is my question. For example, there is Euro interest charged by parent company A (GBP) on the Euro loan given to foreign subsidiary company B (Euro). Such inter-company interest inco...

Thanks for your expert opinion. God bless you always Sir!

Replacement Reserve Reference is often made to the existence in management contracts and loan agreements of provisions for reserves to be set aside for future replacements of furniture, fixtures and equipment, and building systems replacements. Such reserves are commonly based on a percentage of the...

Furniture bought by hotel operator is usually adjusted against Furniture, Fixture and Equipment Reserve, well known reserve of hotel industry. My question is that who will be entitle to show these furniture items in his balance sheet and responsible for charging depreciation. Hotel operator or hotel...

Excellent answer sir! Thanks for your quick response and making it easy to understand.

Hi, you need to take a different approach. The ultimate parent consolidates all its subsidiaries directly, so it does not matter what is included in the consolidated financial statements of the sub-group. Just translate all the sub-subsidiaries directly under general approach as set out in IAS 21 I...

Thanks to the founder of this useful and informative IFRS forum. I have one question regarding foreign subsidiary consolidation. If consolidated balance sheet of foreign subsidiary has foreign currency translation reserve balance amounting to 15,000 USD. When the same consolidated balance sheet tran...

Marek wrote: ↑25 Jul 2019, 14:37 Yes, unless it's part of the investment in subsidiary

thanks sir. So much respect for you sir