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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)

I've moved your post to a new topic. You can still view the original discussion here: viewtopic.php?t=355

You should also include accruals since they are recognised in the financial statements.

The consideration transferred includes assets transferred to the acquiree which remain within the combined entity (IFRS 3.38). This implies that the cash paid for shares is included in the net assets acquired so that the double entry is balanced. This cash payment equally affects both sides of the g...

You should disclose the following as per IAS 1.25:
- the fact that the company is no longer going concern
- the basis on which it prepared the financial statements
- the reason why the entity is not regarded as a going concern