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Licences for on-premise use can be recognised as intangible assets by your clients. Conversely, if it's just an access to software on your servers, then it's a revenue expense. See: https://ifrscommunity.com/knowledge-base/recognition-and-cost-of-intangible-assets/#software-as-a-service-saas The dev...

Mapu22 wrote: ↑19 Apr 2024, 13:21 First I have to book the premium to p&l. DR option CR cost

Since when costs are booked on the credit side? And you seem to missing the cash payment from these initial entries. Try again

It's a business combination under common control, so you have lots of flexibility in how you account for this transaction: https://ifrscommunity.com/knowledge-bas ... on-control

PS. You should be able to find some answers in KPMG's IFRS 2 handbook: https://assets.kpmg.com/content/dam/kpm ... yments.pdf

That's why I asked for the business rationale for this decision. It'll help to clarify whether it's an implied impairment loss or a capital contribution.

This might also be considered an equity contribution to the associate, in which case the debit entry would be treated as an increase in the investment accounted for under the equity method. What are the economic reasons for waiving the previously agreed interest? Also, if this associate is loss-maki...

This scenario might be too complex to address in a forum post, I'm afraid...

Leo wrote: ↑11 Apr 2024, 17:03 I read quickly so I must've missed something.

Next time, please take a more careful read before posting your comments, otherwise you're just cluttering the forums

How do customers access the software? Is it through on-premises installation or via a web browser (SaaS)?

PS. Instead of using generic titles like 'Intangible assets (IAS 38)', please propose a specific title related to your question and I'll update it.

Can you provide the exact quote specifying that the interest is mandatory?

Check out this analysis based on an actual case study:
https://www.footnotesanalyst.com/analys ... tructures/

https://ifrscommunity.com/ifrs-forum-qu ... in-replies

yeah three interns supervised by an 'experienced' associate

Yeah, my post wasn't clear Say the ship's owner pays $100 of which the subsidiary receives $90.

Accounting by parent:
Revenue $100
COS $90

Accounting by subsidiary:
Revenue $90
COS [actual costs incurred]

It appears the subsidiary is acting as a subcontractor for the parent. It's correct for them to recognise revenue based on the actual amount received. But I'd classify this as revenue earned from the parent and disclose it as related party revenue under IAS 24.

WOW!

this link should work (Note 25, page 74):

https://find-and-update.company-informa ... download=0

https://www.annualreports.com/HostedDat ... f#page=193

Does the subsidiary directly contract with the ship's owner, and could you clarify the cash flows i.e. who is paying whom?

The scenario needs more specificity, particularly regarding the parent company's role in connecting the subsidiary with the client and in delivering the service.

Yes, you should factor in the minimum step-up at the start of the lease

It's still a debt instrument

Not sure what you mean - a loan is a type of debt instrument

The use of terminal value is largely independent of the length of the forecast. Just remember to apply a 7-year discount when bringing the terminal year's value back to the reporting date.

The credit note confirms the correct amount at the year-end.

That's a trade receivable on the debit side, or you might need to adjust the trade payable if it's still unsettled at the reporting date. You credit the expense, or the inventory if the items haven't been sold. And this definitely isn't a contract asset.

What's the reason for issuing this credit note?

Your diagram doesn't match the narrative part of your question.

You need to estimate an effective tax rate that will be applicable to your company and use this rate when measuring deferred tax (see IAS 12.49)