Search found 1675 matches

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: 5
Views: 88

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: 81

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: 53

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: 5
Views: 88

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 sta...
by Marek Muc
23 Sep 2021, 10:15
Forum: IFRS-related topics
Topic: IAS 23 Borrowings cost
Replies: 1
Views: 31

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: 81

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: 113

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: 89

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: 223

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...
by Marek Muc
03 Sep 2021, 11:49
Forum: General accounting and financial reporting discussion
Topic: Redeemable preference shares redeemed at a discount
Replies: 8
Views: 223

Re: Redeemable preference shares redeemed at a discount

LindsayM wrote: 03 Sep 2021, 11:08 So, how to account for the $488.
it stays within equity, you can transfer it to retained earnings if you don't want to keep the preference share reserve
by Marek Muc
03 Sep 2021, 10:27
Forum: General accounting and financial reporting discussion
Topic: Redeemable preference shares redeemed at a discount
Replies: 8
Views: 223

Re: Redeemable preference shares redeemed at a discount

is it classified as a 100% equity instrument? then there's no P&L impact, just debit the equity at $512 and you're done
by Marek Muc
02 Sep 2021, 12:26
Forum: General accounting and financial reporting discussion
Topic: Tax proof and intercompany operations
Replies: 5
Views: 167

Re: Tax proof and intercompany operations

if they do, you will have group's net income at 0 and tax at 0 as expected if they don't, you'll need to explain the difference on effective tax rate, but it doesn't really matter that this was an intercompany transaction, you need to explain that one of the entities incurred tax loss but didn't rec...
by Marek Muc
02 Sep 2021, 12:06
Forum: General accounting and financial reporting discussion
Topic: Tax proof and intercompany operations
Replies: 5
Views: 167

Re: Tax proof and intercompany operations

Did Company B regonise def tax asset for the carryforward of unused tax loss?
https://ifrscommunity.com/knowledge-bas ... ax-credits
by Marek Muc
02 Sep 2021, 10:12
Forum: General accounting and financial reporting discussion
Topic: Depreciation disclosure help
Replies: 2
Views: 90

Re: Depreciation disclosure help

the cost of vehicles may include assets that were fully depreciated already but still in use
by Marek Muc
26 Aug 2021, 09:17
Forum: IFRS-related topics
Topic: IFRS 16 IJARAH / FINANCE LEASE
Replies: 1
Views: 7551

Re: IFRS 16 IJARAH / FINANCE LEASE

I would not derecognise the property at all - it's just a collateral with a temporary transfer of the legal title. You still keep risk and rewards of ownership. So the entries would be: Dr cash 60 Cr loan 60 and then subsequent accounting under amortised cost: https://ifrscommunity.com/knowledge-bas...
by Marek Muc
23 Aug 2021, 14:02
Forum: IFRS-related topics
Topic: IFRS 16 OR IAS 16???
Replies: 3
Views: 4288

Re: IFRS 16 OR IAS 16???

you're probably right! an exam question or some kind of homework :)
by Marek Muc
22 Aug 2021, 21:03
Forum: IFRS-related topics
Topic: IFRS 16 OR IAS 16???
Replies: 3
Views: 4288

Re: IFRS 16 OR IAS 16???

And what is your opinion after reading this page?:

https://ifrscommunity.com/knowledge-bas ... g-a-lease/
by Marek Muc
19 Aug 2021, 09:13
Forum: IFRS-related topics
Topic: Lease Renewal - derecognise original ROU Asset?
Replies: 3
Views: 3763

Re: Lease Renewal - derecognise original ROU Asset?

If you were still using the asset on the last day of the lease term, it kind of implies that you had to reassess the lease term, so the lease wasn't terminated from an accounting point of view. Remember here that accounting lease term may differ from the contractual non-cancellable lease term: https...
by Marek Muc
13 Aug 2021, 11:41
Forum: IFRS-related topics
Topic: Related Party Disclousure
Replies: 1
Views: 3032

Re: Related Party Disclousure

please provide more details about this transaction
by Marek Muc
12 Aug 2021, 14:28
Forum: After hours
Topic: Just saying thanks Marek Muc
Replies: 1
Views: 4570

Re: Just saying thanks Marek Muc

thanks Gerald!
by Marek Muc
12 Aug 2021, 12:14
Forum: IFRS-related topics
Topic: IFRS 15 Point in Time/Over Time between Subsidiaries
Replies: 3
Views: 3744

Re: IFRS 15 Point in Time/Over Time between Subsidiaries

OK so A recognises net revenue only at a point time amounting to the expected margin to be earned there won't be any contract asset at group level, A won't show any expenses, just the margin, you will probably need to recognise some consolidation adjustments to match the desired revenue recognition ...
by Marek Muc
11 Aug 2021, 23:34
Forum: General accounting and financial reporting discussion
Topic: €(123) million or (€123) million?
Replies: 8
Views: 11330

Re: €(123) million or (€123) million?

Makes sense to me, similarly I would write €-123 rather than -€123
by Marek Muc
10 Aug 2021, 09:47
Forum: General accounting and financial reporting discussion
Topic: €(123) million or (€123) million?
Replies: 8
Views: 11330

Re: €(123) million or (€123) million?

it's interesting that you spotted inconsistencies even within IFRS, I guess this proves that there's no canonical rule :)
by Marek Muc
09 Aug 2021, 16:18
Forum: IFRS-related topics
Topic: IAS 19 Defined Benefit Plan - Past Service Cost
Replies: 4
Views: 3916

Re: IAS 19 Defined Benefit Plan - Past Service Cost

past service cost is recognised immediately in P&L
note that the CU 120 relates to service before 1 January 20X5, so it is already 'earned' at 1 January 20X5
by Marek Muc
09 Aug 2021, 13:12
Forum: IFRS-related topics
Topic: IAS 19 Defined Benefit Plan - Past Service Cost
Replies: 4
Views: 3916

Re: IAS 19 Defined Benefit Plan - Past Service Cost

Please quote the whole example as your post is unclear to me