Search found 10 matches
- 23 Sep 2021, 15:18
- Forum: IFRS-related topics
- Topic: BCUCC or IFRS 3?
- Replies: 5
- Views: 1704
Re: BCUCC or IFRS 3?
Government is the ultimate controlling party before and after the business combination, so to me it's clearly a BCUCC. And what is your opinion? TBH I couldn't decide whether it should be accounted as business combination on subsidiary level or BCUCC on receiving/transferring company level. From wh...
- 23 Sep 2021, 06:15
- Forum: IFRS-related topics
- Topic: BCUCC or IFRS 3?
- Replies: 5
- Views: 1704
BCUCC or IFRS 3?
Hi, I need to draw the line whether below transaction is a BCUCC or BC: Before Combination the govt are the controlling shareholders of those SOEs which each of them have a subsidiary ........Government |.............|.............| |.............|.............| SOE A......SOE B........SOE C |.........
- 12 Mar 2020, 02:53
- Forum: IFRS-related topics
- Topic: IFRS 2: Using buy-back shares as shares based payment
- Replies: 6
- Views: 1845
Re: IFRS 2: Using buy-back shares as shares based payment
Well as I'm working on my paper about that case, now I think it doesn't make any sense if the entity didn't recognize the treasury shares in the very first place, because the shares itself will be used as an underlying for the shares based payment. The reason why the entity wants to purchase the sha...
- 11 Mar 2020, 01:46
- Forum: IFRS-related topics
- Topic: IFRS 2: Using buy-back shares as shares based payment
- Replies: 6
- Views: 1845
Re: IFRS 2: Using buy-back shares as shares based payment
Hi Marek, Yeah I think so, but how if the entity issue put option to the shareholders instead of purchasing issued stock at that time? Thus the entity will not possess any treasury shares in the book at that time. The entity will exercise the option once the employees are fully entitled to the benef...
- 10 Mar 2020, 13:39
- Forum: IFRS-related topics
- Topic: IFRS 2: Using buy-back shares as shares based payment
- Replies: 6
- Views: 1845
IFRS 2: Using buy-back shares as shares based payment
Hi, I have a scenario where an entity wants to pay an employee using issued shares that will be purchased from the other shareholders. The entity will give it under vesting condition where he/she has to work for at least 5 years from now to receive the benefits. My question is, is it possible to avo...
- 22 Aug 2019, 12:23
- Forum: IFRS-related topics
- Topic: Contributing of Fixed Asset to Subsidiary in an Exchange for Equity Shares
- Replies: 9
- Views: 4980
Re: Contributing of Fixed Asset to Subsidiary in an Exchange for Equity Shares
So this is rather a whole business that is transferred, not only a fixed asset, right? If so , there is a business combination under common control that you are dealing with. It is not covered by IFRS , it is on the agenda of IASB. It is also not covered in our knowledge base yet. In short , I woul...
- 22 Aug 2019, 04:04
- Forum: IFRS-related topics
- Topic: Contributing of Fixed Asset to Subsidiary in an Exchange for Equity Shares
- Replies: 9
- Views: 4980
Re: Contributing of Fixed Asset to Subsidiary in an Exchange for Equity Shares
OK, so what are the economic/commercial reasons behind this contribution? Ok, let's say the regulations in Vienna forced Entity Panning to cease its operations and must transfer the whole operations to P's subsidiary which is Entity Somerset. So, instead of going through lease arrangements (Entity ...
- 21 Aug 2019, 02:53
- Forum: IFRS-related topics
- Topic: Contributing of Fixed Asset to Subsidiary in an Exchange for Equity Shares
- Replies: 9
- Views: 4980
Re: Contributing of Fixed Asset to Subsidiary in an Exchange for Equity Shares
Thanks Marek! Very insightful! I say 'normally' as intragroup transactions can lack commercial substance, which would require tailored accounting. Can you explain more about this? Like what is tailored accounting and so on? If the commercial substance considered to be non-existent, then how to proof...
- 20 Aug 2019, 13:26
- Forum: IFRS-related topics
- Topic: Contributing of Fixed Asset to Subsidiary in an Exchange for Equity Shares
- Replies: 9
- Views: 4980
Re: Contributing of Fixed Asset to Subsidiary in an Exchange for Equity Shares
Hi, Thanks for the answer! I understood that under IAS 27 investment in subsidiaries are recognised at cost. The only thing that baffled me is if I recognise my investment at cost, then which cost should I refer to? The carrying amount (BV) of the asset, or the FV of the asset? If so, why not the an...
- 20 Aug 2019, 11:41
- Forum: IFRS-related topics
- Topic: Contributing of Fixed Asset to Subsidiary in an Exchange for Equity Shares
- Replies: 9
- Views: 4980
Contributing of Fixed Asset to Subsidiary in an Exchange for Equity Shares
Hello there, Let's say Entity Panning (P) owns 95% of Entity Somerset's (S) shares. P wants to give one of P's building to its subsidiary (S) in exchange for equity shares. BV and FV of the building itself is $500 and $700 respectively. I have a trouble in determining the accounting treatment for th...