Search found 1695 matches

by Marek Muc
15 Oct 2021, 19:32
Forum: IFRS-related topics
Topic: Change in depreciation policy-IFRS Adoption
Replies: 13
Views: 724

Re: Change in depreciation policy-IFRS Adoption

:lol: :lol: :lol:

maybe they'll revisit this revolutionary idea in XXII century :lol:
by Marek Muc
15 Oct 2021, 17:29
Forum: IFRS-related topics
Topic: Savings prize draw accounts
Replies: 12
Views: 90

Re: Savings prize draw accounts

That may be a good solution too, to treat is as marketing expense (outside of finance costs). But this may not be in line with IFRS 15 is one believes we're in its scope.
by Marek Muc
15 Oct 2021, 16:20
Forum: IFRS-related topics
Topic: Savings prize draw accounts
Replies: 12
Views: 90

Re: Savings prize draw accounts

you're taking it out of context IMO - the bank is repaying a tiny bit of fees earned from customers
by Marek Muc
15 Oct 2021, 16:18
Forum: IFRS-related topics
Topic: Change in depreciation policy-IFRS Adoption
Replies: 13
Views: 724

Re: Change in depreciation policy-IFRS Adoption

JRSB wrote: 09 Jun 2020, 17:19 Every taxpayer in the UK reports for the period 6 April to following 5 April.
just came across :)

https://www.gov.uk/government/publicati ... r-end-date
by Marek Muc
15 Oct 2021, 15:53
Forum: IFRS-related topics
Topic: Savings prize draw accounts
Replies: 12
Views: 90

Re: Savings prize draw accounts

operating customer's bank accounts
by Marek Muc
15 Oct 2021, 09:45
Forum: IFRS-related topics
Topic: Savings prize draw accounts
Replies: 12
Views: 90

Re: Savings prize draw accounts

I think we already agreed that this is out of the scope of IFRS 9

This is not in the scope of IAS 37 IMO as (presumably) this is a contractual obligation and therefore in the scope of IFRS 15
by Marek Muc
15 Oct 2021, 09:42
Forum: IFRS-related topics
Topic: IFRS 9 General Question
Replies: 3
Views: 32

Re: IFRS 9 General Question

I understand it a bit differently. To me, unwinding of discount is a narrower term used for items recognised at discounted amount, i.e. lower than face value. For example, you buy a zero-coupon bond for $95 with a face value of $100, and then you unwind (i.e. accrue) discount to arrive at $100 at re...
by Marek Muc
14 Oct 2021, 17:52
Forum: IFRS-related topics
Topic: Savings prize draw accounts
Replies: 12
Views: 90

Re: Savings prize draw accounts

... but it's a promise made to customers, even though a customer receiving the price may be specified at a later date. So I wouldn't wait with the recognition in P&L until the payment (credit) is effected
by Marek Muc
14 Oct 2021, 17:43
Forum: IFRS-related topics
Topic: Recognizing non controlling interest based on profit sharing agreement
Replies: 11
Views: 129

Re: Recognizing non controlling interest based on profit sharing agreement

Then you would be more likely to classify this as equity (assuming no contractual repayment of the principal amount either). This page provides a neat overview on the distinction between debt and equity:

https://ifrscommunity.com/knowledge-bas ... vs-equity/
by Marek Muc
13 Oct 2021, 18:55
Forum: IFRS-related topics
Topic: Savings prize draw accounts
Replies: 12
Views: 90

Re: Savings prize draw accounts

to me, it's not an interest expense at all, I would account for it outside of financial instruments accounting

sounds more like a decrease of revenue earned from fees and commissions:
https://ifrscommunity.com/knowledge-bas ... a-customer
by Marek Muc
12 Oct 2021, 19:13
Forum: IFRS-related topics
Topic: Relation on FX on Cash in Cash Flow and Net finance
Replies: 7
Views: 251

Re: Relation on FX on Cash in Cash Flow and Net finance

well, this is not coming back to your initial question at all :D

OCI does not impact net result

can you attach here an example of P&L and CF where net result is different across those primary financial statements?
by Marek Muc
12 Oct 2021, 10:29
Forum: IFRS-related topics
Topic: Recognizing non controlling interest based on profit sharing agreement
Replies: 11
Views: 129

Re: Recognizing non controlling interest based on profit sharing agreement

To me it's also debt as you have contractual obligation to deliver cash on the money received ('rent'). Plus, as JRSB noted, there is no residual interest for the Purchaser.
by Marek Muc
08 Oct 2021, 00:56
Forum: IFRS-related topics
Topic: Expected Credit Loss
Replies: 7
Views: 193

Re: Expected Credit Loss

No, if it's a financial asset and it's debt - you need to recognise ECL
by Marek Muc
04 Oct 2021, 11:56
Forum: IFRS-related topics
Topic: IFRS 16 purchase option
Replies: 15
Views: 384

Re: IFRS 16 purchase option

I would stick to IFRS 16 requirements, non-binding lessee's verbal declarations are not enough to conclude on accounting treatment 10 years is a rather short term for a property lease, if the purchase option is for a price that is not considerably lower than fair value, I would treat it as an operat...
by Marek Muc
04 Oct 2021, 11:41
Forum: After hours
Topic: Software update
Replies: 2
Views: 169

Re: Software update

yep, mostly behind the scenes code maintenance There is one change on the front end though. Members who are subscribed to receive email notifications will receive only one email for each new topic. Previously, they received also a second notification email when a first reply to a new topic was poste...
by Marek Muc
02 Oct 2021, 21:22
Forum: IFRS-related topics
Topic: Knock off the sales Invoice amount with Purchase amount
Replies: 2
Views: 128

Re: Knock off the sales Invoice amount with Purchase amount

it seems that net presentation is more suitable, either under principal vs agent considerations or consideration payable to a customer https://ifrscommunity.com/knowledge-base/principal-vs-agent-revenue-gross-vs-net/ https://ifrscommunity.com/knowledge-base/ifrs-15-transaction-price/#link-considerat...
by Marek Muc
02 Oct 2021, 21:18
Forum: IFRS-related topics
Topic: IFRS 16 purchase option
Replies: 15
Views: 384

Re: IFRS 16 purchase option

How does the exercise price of the option compare with the fair value of the building? Is the exercise price significantly lower than fair value?
by Marek Muc
02 Oct 2021, 19:55
Forum: After hours
Topic: Software update
Replies: 2
Views: 169

Software update

Hi All,
I've just updated the forum software, please let me know if you notice anything unexpected.

M.
by Marek Muc
23 Sep 2021, 21:24
Forum: IFRS-related topics
Topic: Relation on FX on Cash in Cash Flow and Net finance
Replies: 7
Views: 251

Re: Relation on FX on Cash in Cash Flow and Net finance

Note that some fx effects on cash are not reflected in P&L, but go through OCI if they arise on translation of a foreign operation. Therefore, they won't be included in the finance costs line that is shown as an adjustment to net income in cash flow statement
by Marek Muc
23 Sep 2021, 10:51
Forum: IFRS-related topics
Topic: Prepayments
Replies: 7
Views: 247

Re: Prepayments

It couldn't be more relevant :)

And you are obviously right that this is not a financial instrument.

So I guess the best option is to keep it as a prepayment and accrue interest income over time
by Marek Muc
23 Sep 2021, 10:23
Forum: IFRS-related topics
Topic: BCUCC or IFRS 3?
Replies: 4
Views: 154

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?
by Marek Muc
23 Sep 2021, 10:20
Forum: IFRS-related topics
Topic: Relation on FX on Cash in Cash Flow and Net finance
Replies: 7
Views: 251

Re: Relation on FX on Cash in Cash Flow and Net finance

I guess you're talking about the position that is in the top section of the cash flow statement? If so, this is the part that adjusts net/ gross income for a non-cash P&L position, and actual payments should be visible in other lines, eg. interest paid. You can attach a screenshot of a cash flow...
by Marek Muc
23 Sep 2021, 10:15
Forum: IFRS-related topics
Topic: IAS 23 Borrowings cost
Replies: 1
Views: 101

Re: IAS 23 Borrowings cost

How do the criteria described below apply to your project?

https://ifrscommunity.com/knowledge-bas ... talisation
by Marek Muc
23 Sep 2021, 10:10
Forum: IFRS-related topics
Topic: Prepayments
Replies: 7
Views: 247

Re: Prepayments

So it seems to me that this should be accounted for as a loan. If you don't want to do that, then it's best to follow the approach that you outlined, though IFRS 15 does not apply strictly speaking from the perspective of the Company lending money, as it is a buyer in this arrangement. Ps. It's an o...
by Marek Muc
15 Sep 2021, 13:01
Forum: IFRS-related topics
Topic: IFRS16 lease modification
Replies: 2
Views: 198

Re: IFRS16 lease modification

the approach is set out on this page:
https://ifrscommunity.com/knowledge-bas ... fications/

if you're still struggling after having read this, please be more specific with your concerns
by Marek Muc
08 Sep 2021, 12:53
Forum: IFRS-related topics
Topic: IFRS 16 - Lease novation
Replies: 1
Views: 149

Re: IFRS 16 - Lease novation

I would go for termination and new lease in separate financial statements, but without any impact on consolidated financial statements, so consolidation adjustments will be necessary
by Marek Muc
03 Sep 2021, 11:55
Forum: General accounting and financial reporting discussion
Topic: Redeemable preference shares redeemed at a discount
Replies: 8
Views: 384

Re: Redeemable preference shares redeemed at a discount

PS. I'm not sure if you can find a more specific IFRS reference than IAS 1.109 Changes in an entity’s equity between the beginning and the end of the reporting period reflect the increase or decrease in its net assets during the period. Except for changes resulting from transactions with owners in t...