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Hi All, Background: A service company that supports its holding company for a specific region with a cost-plus arrangement (i.e. (salaries + direct costs) + 5%) and is billed monthly. Does it fulfill the first criteria of recognizing the income over time: 1) The customer simultaneously receives and ...

My bad, I meant inflating the gross amount of PPE.

It doesn't affect my KPI per se as I am not standing from the viewpoint of the preparer of financial statements, it's more of a curious question. It's like what JRSB has said that ROU is in the traditional PPE explanatory notes, mainly because in the current jurisdiction I am in, the illustrative se...

Hi Xandrea, a) Like JRSB mentioned, you might want to assess if there's an input, process and output of the company you acquired, it could be just an intangible asset whereby the the acquirer allocates the consideration between the individual identifiable assets and liabilities in the group based on...

For e.g. on initial recognition, the lease agreement was signed with a non-cancellable lease of 2 years with a NPV of 200k (ignoring the reality that it wouldn't be rounded so nicely from discounting). Subsequently right before the 3 years is up, a new lease agreement was signed for the same lease a...

Hi, When does one de-recognise the ROU - cost? A lease modification (i.e. extension of lease period assessed under the same lease) wouldn't warrant a de-recognition of ROU - cost right? Wouldn't this result in an accumulated ROU - cost that will baloon as you lease longer and longer over 10 years? T...