Search found 3226 matches

by Marek Muc
26 Mar 2024, 21:58
Forum: IFRS-related topics
Topic: IFRS 16 vs discontinuing operations
Replies: 3
Views: 39

Re: IFRS 16 vs discontinuing operations

The lease termination costs can be presented within discontinued operations. But I may have missed the essence of your question. If so, please elaborate further.
by Marek Muc
26 Mar 2024, 20:07
Forum: IFRS-related topics
Topic: IFRS 16 vs discontinuing operations
Replies: 3
Views: 39

Re: IFRS 16 vs discontinuing operations

After the subsidiary is wound up, what plans does the group have for the lease contract?
by Marek Muc
26 Mar 2024, 20:03
Forum: IFRS-related topics
Topic: Significant insurance risk - 1% Death Benefit IFRS 17
Replies: 1
Views: 37

Re: Significant insurance risk - 1% Death Benefit IFRS 17

Unfortunately, we don't have insurance experts in our Community.
by Marek Muc
26 Mar 2024, 19:55
Forum: IFRS-related topics
Topic: IAS 23- interest expense as per IFRS 9
Replies: 3
Views: 52

Re: IAS 23- interest expense as per IFRS 9

Hi, please start separate topics for each issue
by Marek Muc
25 Mar 2024, 18:47
Forum: IFRS-related topics
Topic: Alignment of joint venture's accounting policies in equity accounting
Replies: 6
Views: 73

Re: Alignment of joint venture's accounting policies in equity accounting

The second option would constitute a change in group's accounting policy with all the IAS 8 implications like retrospective restatement.
Also, IAS 40.31 states that switching from the fair value model to the cost model will rarely lead to a more relevant financial statement presentation.
by Marek Muc
25 Mar 2024, 18:43
Forum: IFRS-related topics
Topic: IAS 7 - cashflow
Replies: 5
Views: 50

Re: IAS 7 - cashflow

You need to address two elements:
1. P/L charge – treat this as a non-cash expense, similar to depreciation.
2. Equity movement: ignore this as it had no effect on P/L and didn't involve any cash flow.
by Marek Muc
25 Mar 2024, 18:39
Forum: IFRS-related topics
Topic: IFRS16 lease -Finance cost grouping
Replies: 5
Views: 83

Re: IFRS16 lease -Finance cost grouping

In my view, classifying interest expense on lease liabilities as R&D (operating costs) in P/L statement isn't appropriate. These expenses are more about financing the asset, rather than its actual use. IFRS 16.49 is the correct IFRS reference.
by Marek Muc
25 Mar 2024, 18:33
Forum: IFRS-related topics
Topic: ECL for short term lending
Replies: 10
Views: 109

Re: ECL for short term lending

Interesting topic! I’d say that PD decreases as we near the repayment date, mainly because the likelihood of external risks such as economic downturns or geopolitical unrest lessens. But risks specific to the borrower remain unknown to the lender, so we shouldn’t assume these are nearly zero a day b...
by Marek Muc
25 Mar 2024, 18:21
Forum: IFRS-related topics
Topic: Accrued Interest - Loan Write Off
Replies: 3
Views: 52

Re: Accrued Interest - Loan Write Off

good point, the entity might have initially recognised too much interest revenue
by Marek Muc
25 Mar 2024, 18:17
Forum: IFRS-related topics
Topic: Reversal of liability
Replies: 4
Views: 59

Re: Reversal of liability

Why is this part of the consideration no longer deemed payable?
by Marek Muc
20 Mar 2024, 11:06
Forum: IFRS-related topics
Topic: ECL for short term lending
Replies: 10
Views: 109

Re: ECL for short term lending

Hi, I've split your post into a separate topic, feel free to provide more background information and context
by Marek Muc
15 Mar 2024, 14:57
Forum: General accounting and financial reporting discussion
Topic: Companies acts consolidation exemption and IFRS 10 exemptions
Replies: 15
Views: 129

Re: Companies acts consolidation exemption and IFRS 10 exemptions

Once again, what inconsistencies have you identified between IFRS and CA06?
by Marek Muc
15 Mar 2024, 11:17
Forum: General accounting and financial reporting discussion
Topic: Companies acts consolidation exemption and IFRS 10 exemptions
Replies: 15
Views: 129

Re: Companies acts consolidation exemption and IFRS 10 exemptions

I think you are simply looking in the wrong place. UK-based entities use IFRS or UK GAAP so I don't think you should expect CA 2006 to have overlapping requirements with these accounting standards.
by Marek Muc
14 Mar 2024, 15:33
Forum: General accounting and financial reporting discussion
Topic: Companies acts consolidation exemption and IFRS 10 exemptions
Replies: 15
Views: 129

Re: Companies acts consolidation exemption and IFRS 10 exemptions

I'd assume that local law aligns with IFRS. The investment entity exception under IFRS 10 is mandatory so there'd be issues if it conflicts with local regulations. In such cases, entities would follow local law and be effectively using a local version of IFRS, such as IFRS 'as adopted by [a country]...
by Marek Muc
13 Mar 2024, 18:47
Forum: IFRS-related topics
Topic: Accounting for Investment in subs
Replies: 2
Views: 40

Re: Accounting for Investment in subs

It's great to see our forums are aiding your internal discussions, Leo :lol:
by Marek Muc
13 Mar 2024, 18:46
Forum: IFRS-related topics
Topic: IFRS 16 - Lease expenses
Replies: 2
Views: 49

Re: IFRS 16 - Lease expenses

This is a lease expense, but a variable one, which isn't included in the lease liability: https://ifrscommunity.com/knowledge-base/ifrs-16-recognition-and-measurement-of-leases/#variable-lease-payments This holds true unless the lessor is responsible for maintaining the printers, in which case these...
by Marek Muc
13 Mar 2024, 18:41
Forum: IFRS-related topics
Topic: IAS 38 - Intangible Assets
Replies: 3
Views: 39

Re: IAS 38 - Intangible Assets

It appears to be a lease, and you have the option to apply either IAS 38 or IFRS 16, as outlined in IFRS 16.4 (most entities opt for IAS 38). For a licence spanning five years, you should recognise a liability and related intangible asset covering the entire period, taking into account that these fu...
by Marek Muc
13 Mar 2024, 18:33
Forum: IFRS-related topics
Topic: Retail CGU's
Replies: 4
Views: 75

Re: Retail CGU's

Yes, geographical. Take, for instance, a Tesco store in London: its revenue is independent from the cash inflows of another store, say, in Manchester.

Could you please share the most relevant disclosures you've come across?
by Marek Muc
13 Mar 2024, 18:29
Forum: General accounting and financial reporting discussion
Topic: Companies acts consolidation exemption and IFRS 10 exemptions
Replies: 15
Views: 129

Re: Companies acts consolidation exemption and IFRS 10 exemptions

I've moved this topic to 'General accounting and financial reporting discussion'. Please don't post local law questions under 'IFRS-related topics', thanks!
by Marek Muc
13 Mar 2024, 18:28
Forum: IFRS-related topics
Topic: IFRS 16 & IFRS 15 for Interconnected purchase & SALT
Replies: 3
Views: 43

Re: IFRS 16 & IFRS 15 for Interconnected purchase & SALT

I'm not sure what kind of adjustment you have in mind, can you clarify a bit more?
by Marek Muc
12 Mar 2024, 18:11
Forum: IFRS-related topics
Topic: Retail CGU's
Replies: 4
Views: 75

Re: Retail CGU's

Retail stores typically have different customer bases, so in principle they should be treated as separate CGUs due to independent cash *inflows*. However, companies often consolidate CGUs, as tracking hundreds of small ones is practically challenging. You could look at the financial statements of pu...
by Marek Muc
12 Mar 2024, 18:04
Forum: IFRS-related topics
Topic: IFRS 16 & IFRS 15 for Interconnected purchase & SALT
Replies: 3
Views: 43

Re: IFRS 16 & IFRS 15 for Interconnected purchase & SALT

A similar scenario is discussed in IFRS 16.B46-47. To me, it seems possible to avoid sale and leaseback accounting if the initial contract with lessor 'A' is made just before exercising the purchase option and entering into the SALT with lessor B.
by Marek Muc
12 Mar 2024, 17:54
Forum: IFRS-related topics
Topic: Cash pooling
Replies: 10
Views: 101

Re: Cash pooling

Orange's Polish subsidiary classifies such funds as cash equivalents:
cash pooling.PNG
https://www.orange-ir.pl/wp-content/upl ... df#page=48
by Marek Muc
12 Mar 2024, 17:50
Forum: IFRS-related topics
Topic: Time deposits
Replies: 5
Views: 345

Re: Time deposits

When designing the layout of SoFP, consider what would be most helpful while satisfying the minimum requirements in IAS 1.54. For instance, you can present the following line items:
- Cash & cash equivalents
- Term deposits
- Trade receivables
- Bonds
- Other financial assets
by Marek Muc
12 Mar 2024, 17:43
Forum: IFRS-related topics
Topic: How to distinguish an entity preparing accounts under IFRS 10 para 27-33 or IAS 27 fair value option
Replies: 5
Views: 55

Re: How to distinguish an entity preparing accounts under IFRS 10 para 27-33 or IAS 27 fair value option

See IAS 27.8A :) An investment entity that is required, throughout the current period and all comparative periods presented, to apply the exception to consolidation for all of its subsidiaries in accordance with paragraph 31 of IFRS 10 presents separate financial statements as its only financial sta...