Search found 19 matches
- 02 Feb 2024, 17:28
- Forum: IFRS-related topics
- Topic: Financial guarantee
- Replies: 19
- Views: 1279
Re: Financial guarantee
Thanks everyone I've discussed with the team. We noted that we apply to IFRS 9B2.5 (a)" If the financial guarantee contract was issued to an unrelated party in a stand-alone arm’s length transaction, its fair value at inception is likely to equal the premium received, unless there is evidence t...
- 02 Feb 2024, 12:51
- Forum: IFRS-related topics
- Topic: Financial guarantee
- Replies: 19
- Views: 1279
Re: Financial guarantee
Let me clarify the adjustment amount:
1000usd (the book value of the shares)*market rate for financial guarantee, right?
Or you mean 1000usd*probably of associate's default?
1000usd (the book value of the shares)*market rate for financial guarantee, right?
Or you mean 1000usd*probably of associate's default?
- 02 Feb 2024, 12:47
- Forum: IFRS-related topics
- Topic: Financial guarantee
- Replies: 19
- Views: 1279
Re: Financial guarantee
Dear DJP, thanks for your assistance.
Before coming there I've discussed the issue within the team, obtained the similar view, but doubting. So we've got your opinion to support ours. Thanks again and thanks you all for great forum
Before coming there I've discussed the issue within the team, obtained the similar view, but doubting. So we've got your opinion to support ours. Thanks again and thanks you all for great forum
- 02 Feb 2024, 12:12
- Forum: IFRS-related topics
- Topic: Financial guarantee
- Replies: 19
- Views: 1279
Re: Financial guarantee
Hi DJP,
The Parent is obliged to sell the shares and transfer the amount received to the bank.
The pledge amount is less than the loan liability. I assume the second parent in associate provides the greater portion of a pledge or any other guarantee to the bank.
The Parent is obliged to sell the shares and transfer the amount received to the bank.
The pledge amount is less than the loan liability. I assume the second parent in associate provides the greater portion of a pledge or any other guarantee to the bank.
- 02 Feb 2024, 10:08
- Forum: IFRS-related topics
- Topic: Financial guarantee
- Replies: 19
- Views: 1279
Re: Financial guarantee
Hi Ketan, thank you for your reply.
Yes, in case of associate's default, the Parent is obliged to sell the stake on the open market and paid off the associate's liability.
Yes, in case of associate's default, the Parent is obliged to sell the stake on the open market and paid off the associate's liability.
- 01 Feb 2024, 16:33
- Forum: IFRS-related topics
- Topic: Financial guarantee
- Replies: 19
- Views: 1279
Re: Financial guarantee
I understand , I simplified the description, it's a joint venture, so the second partner provides its pledge too.
- 01 Feb 2024, 14:55
- Forum: IFRS-related topics
- Topic: Financial guarantee
- Replies: 19
- Views: 1279
Financial guarantee
Dear all, The parent company pledges shares of its 100% subsidiary for the bank loan received by its associate. Assume that market value and the book value of the shares is 1000 USD, and the loan liability is 5000 USD. No written agreements between the parent and its associated is signed that oblige...
- 14 Dec 2023, 17:10
- Forum: IFRS-related topics
- Topic: Digital assets treatment
- Replies: 8
- Views: 1363
Re: Digital assets treatment
Many thanks! I will check
- 13 Dec 2023, 19:21
- Forum: IFRS-related topics
- Topic: Digital assets treatment
- Replies: 8
- Views: 1363
Re: Digital assets treatment
Dear Marek, I will.
Thank you for opportunity to post questions
Thank you for opportunity to post questions
- 12 Dec 2023, 13:24
- Forum: IFRS-related topics
- Topic: Digital assets treatment
- Replies: 8
- Views: 1363
Re: Digital assets treatment
Dear DJP, thank you for your reply. yes, your understanding is very accurate except for p.2, as the potential customer might be a different person. An investor i benefits from increasing of the potential price. We have discussed the scenario with a team and think it would be a financial liability. D...
- 12 Dec 2023, 12:14
- Forum: IFRS-related topics
- Topic: Digital assets treatment
- Replies: 8
- Views: 1363
Digital assets treatment
Dear all, A company plans to sell a digital assets to investors backed by its inventory under development. A potential investor might buy a part of that inventory in the form of a digital assets. Upon expiration date, when inventory is completed and sold out, the digital assets is redeemed at upside...
- 11 Sep 2023, 06:46
- Forum: IFRS-related topics
- Topic: Associate holding equity instruments of the Acquirer
- Replies: 2
- Views: 15905
Re: Associate holding equity instruments of the Acquirer
Thank you very much, Marek.
- 08 Sep 2023, 23:15
- Forum: IFRS-related topics
- Topic: Associate holding equity instruments of the Acquirer
- Replies: 2
- Views: 15905
Associate holding equity instruments of the Acquirer
Dear all, The public company acquires a stake in an associate that is engaged in investment activities and has a significant package of own equity instruments of the acquiring company. Accordingly, the associate earns (or vice versa) also from the revaluation of such instruments. So it seems that th...
- 24 Sep 2021, 09:56
- Forum: IFRS-related topics
- Topic: IFRS 15 and IAS 28, Revenue to the associate
- Replies: 10
- Views: 2845
- 24 Sep 2021, 09:42
- Forum: IFRS-related topics
- Topic: IFRS 15 and IAS 28, Revenue to the associate
- Replies: 10
- Views: 2845
Re: IFRS 15 and IAS 28, Revenue to the associate
no, I am saying the same as pub_acco "Usually, revenue is not recognized under IFRS 15 in such a situation because the risks and control over the products are effectively not transferred to B." Okay, but how you will recognise the gain (ie difference between the purchase price of the apar...
- 24 Sep 2021, 09:27
- Forum: IFRS-related topics
- Topic: IFRS 15 and IAS 28, Revenue to the associate
- Replies: 10
- Views: 2845
- 23 Sep 2021, 11:58
- Forum: IFRS-related topics
- Topic: IFRS 15 and IAS 28, Revenue to the associate
- Replies: 10
- Views: 2845
Re: IFRS 15 and IAS 28, Revenue to the associate
I'm not fully understanding the arrangement, but to me it sounds like a sort of repurchase agreements where A promises to buy back some products when selling them to B. Usually, revenue is not recognized under IFRS 15 in such a situation because the risks and control over the products are effective...
- 23 Sep 2021, 10:27
- Forum: IFRS-related topics
- Topic: IFRS 15 and IAS 28, Revenue to the associate
- Replies: 10
- Views: 2845
Re: IFRS 15 and IAS 28, Revenue to the associate
Actually, A buys rights for the apartments from B, and then sells them to final customers, yes. According to local legislation, "rights" are uncompleted apartments. If rights are still to be sold before the completion, then A becomes an owner of completed apartments and sells them as they ...
- 22 Sep 2021, 13:24
- Forum: IFRS-related topics
- Topic: IFRS 15 and IAS 28, Revenue to the associate
- Replies: 10
- Views: 2845
IFRS 15 and IAS 28, Revenue to the associate
Dear members, The construction company A has the investment in associated company B. Company A provides construction services to company B to build a residential building. B sells the apartments to the customers. Company A decides to acquire some apartments in the constructed building itself and the...