Search found 1580 matches

by Marek Muc
15 Jun 2021, 12:56
Forum: IFRS-related topics
Topic: Parental guarantee on outstanding debt
Replies: 1
Views: 24

Re: Parental guarantee on outstanding debt

to me it sounds like a commitment to capital contribution in the future. I would not recognise anything with respect to this commitment. Instead, I would focus on testing the investment in subsidiary for impairment. Does this investment have positive carrying value?
by Marek Muc
15 Jun 2021, 12:29
Forum: IFRS-related topics
Topic: free interest loan from the Parent
Replies: 3
Views: 38

Re: free interest loan from the Parent

1. yes, it will remain as part of the cost even after it's repaid
2. yes, this approach can be used for associates as well
by Marek Muc
13 Jun 2021, 19:50
Forum: IFRS-related topics
Topic: Reversal of Impairment Loss
Replies: 1
Views: 14

Re: Reversal of Impairment Loss

what kind of assets do you have in mind? PP&E? if so, see here:
https://ifrscommunity.com/knowledge-bas ... le-assets/
by Marek Muc
10 Jun 2021, 10:45
Forum: IFRS-related topics
Topic: discount on revenue
Replies: 6
Views: 63

Re: discount on revenue

too bad, a disclosure explaining what happened is strongly recommended :)
by Marek Muc
09 Jun 2021, 22:29
Forum: IFRS-related topics
Topic: discount on revenue
Replies: 6
Views: 63

Re: discount on revenue

then it's a performance penalty, to be accounted for as a revenue decrease

does this result in debit balance for total of revenue reported by this entity?
by Marek Muc
09 Jun 2021, 09:17
Forum: IFRS-related topics
Topic: discount on revenue
Replies: 6
Views: 63

Re: discount on revenue

in any case, you need to decrease revenue, does this result in debit balance for total of revenue reported by this entity?
by Marek Muc
08 Jun 2021, 18:48
Forum: IFRS-related topics
Topic: Prepayments-cash flow (IFRS 16)
Replies: 5
Views: 44

Re: Prepayments-cash flow (IFRS 16)

Makes sense!
by Marek Muc
07 Jun 2021, 17:51
Forum: IFRS-related topics
Topic: Prepayments-cash flow (IFRS 16)
Replies: 5
Views: 44

Re: Prepayments-cash flow (IFRS 16)

I also thought about it, but didn't like this solution because identical payments are treated differently depending on the timing
by Marek Muc
07 Jun 2021, 14:01
Forum: IFRS-related topics
Topic: Prepayments-cash flow (IFRS 16)
Replies: 5
Views: 44

Re: Prepayments-cash flow (IFRS 16)

hm, I'm tempted to show it within financing activities provided that such a prepayment decreases lease liability to be recognised at the commencement of the lease. What are your thoughts?
by Marek Muc
04 Jun 2021, 01:21
Forum: IFRS-related topics
Topic: Embedded derivative
Replies: 11
Views: 85

Re: Embedded derivative

True
by Marek Muc
03 Jun 2021, 15:05
Forum: IFRS-related topics
Topic: Embedded derivative
Replies: 11
Views: 85

Re: Embedded derivative

It's not a derivative instrument, there's no 'underlying':

https://ifrscommunity.com/knowledge-bas ... -in-ifrs-9
by Marek Muc
03 Jun 2021, 13:49
Forum: IFRS-related topics
Topic: Embedded derivative
Replies: 11
Views: 85

Re: Embedded derivative

a floor or a cap relates to the price that you will pay for eg commodity, so such an option has economic value

what do you mean exactly when you refer to a 'prepayment option' in relation to non-financial services? an option to pay in advance for those services?
by Marek Muc
02 Jun 2021, 12:48
Forum: IFRS-related topics
Topic: IFRS 9 and Loan Holidays
Replies: 12
Views: 61

Re: IFRS 9 and Loan Holidays

Dr Financial Liabilities $50m / Cr Cash $50m – to reflect the repayment of principal
so you just derecognised this loan :)

for derecognition of financial assets, there is a specific decision framework:

https://ifrscommunity.com/knowledge-bas ... al-assets/
by Marek Muc
02 Jun 2021, 12:13
Forum: IFRS-related topics
Topic: IFRS 9 and Loan Holidays
Replies: 12
Views: 61

Re: IFRS 9 and Loan Holidays

the 10% threshold applies to financial liabilities only, so let's start with borrower's accounts - what entries do you have in mind?
by Marek Muc
02 Jun 2021, 11:21
Forum: IFRS-related topics
Topic: IFRS 9 and Loan Holidays
Replies: 12
Views: 61

Re: IFRS 9 and Loan Holidays

what entries (debits and credits) would you recognise if the loan is repaid but not derecognised?
by Marek Muc
02 Jun 2021, 09:57
Forum: IFRS-related topics
Topic: IFRS 9 and Loan Holidays
Replies: 12
Views: 61

Re: IFRS 9 and Loan Holidays

I agree with pub_acco, and this discussion would be even more complicated as loan commitments are generally scoped out of IFRS 9 @smitpay, even if you kept the gross amount of liability in the balance sheet, then you would have to recognise some kind of financial asset representing the loan (cash) t...
by Marek Muc
02 Jun 2021, 09:49
Forum: IFRS-related topics
Topic: IAS 38 Intangible Assets
Replies: 3
Views: 39

Re: IAS 38 Intangible Assets

@JRSB, the OP asks about costs that can be included in the cost of the intangible asset, not whether it meets the recognition criteria @Muzaffar, IAS 38 requirements mostly mirror those of IAS 16, so see this page for guidance: https://ifrscommunity.com/knowledge-base/cost-of-property-plant-equipmen...
by Marek Muc
01 Jun 2021, 19:21
Forum: IFRS-related topics
Topic: IFRS 9 and Loan Holidays
Replies: 12
Views: 61

Re: IFRS 9 and Loan Holidays

The principal is repaid upon entering into this restructuring arrangement, and what happens with interest accrued and unpaid at that date?
by Marek Muc
31 May 2021, 12:25
Forum: IFRS-related topics
Topic: IFRS 16 Advance Payment
Replies: 8
Views: 35

Re: IFRS 16 Advance Payment

it depends on your assessment: https://ifrscommunity.com/knowledge-base/ifrs-16-lease-term/#link-options-to-extend-or-terminate-a-lease if you include this 1 optional year in lease term, then you have to recognise it as a lease liability (which means you will recognise unwinding of discount and fina...
by Marek Muc
31 May 2021, 11:36
Forum: IFRS-related topics
Topic: IFRS 16 Advance Payment
Replies: 8
Views: 35

Re: IFRS 16 Advance Payment

do you include this 1 optional year in the lease term under IFRS 16?
by Marek Muc
31 May 2021, 11:20
Forum: IFRS-related topics
Topic: IFRS 16 Advance Payment
Replies: 8
Views: 35

Re: IFRS 16 Advance Payment

yep, there will be no discounting expense since there is no lease liability this is of course assuming that the lease term is the same as the prepaid period: https://ifrscommunity.com/knowledge-base/ifrs-16-lease-term/ you can find lease examples with excel working files on this page: https://ifrsco...
by Marek Muc
31 May 2021, 10:52
Forum: IFRS-related topics
Topic: IFRS 16 Advance Payment
Replies: 8
Views: 35

Re: IFRS 16 Advance Payment

you simply won't have any lease liability for the amounts paid, they will be included in the right of use asset

https://ifrscommunity.com/knowledge-bas ... ement-date
by Marek Muc
31 May 2021, 10:50
Forum: IFRS-related topics
Topic: Pre-combination information
Replies: 4
Views: 45

Re: Pre-combination information

As I understand, you're discussing additional disclosure in explanatory notes, not primary financial statements, right? then there is no need to "reverse" anything in 2021, just prepare the pro-forma information for two full years as if the business combination took effect at the earliest opening ba...
by Marek Muc
30 May 2021, 17:23
Forum: IFRS-related topics
Topic: Associate accounting
Replies: 7
Views: 61

Re: Associate accounting

You will pass this conso adjustment for the period up to the day of disposal, and then derecognise the investment at carrying amount under the equity method. Be careful not to recognise the expense representing the carrying amount of investment twice (depending on your consolidation mechanics some e...
by Marek Muc
28 May 2021, 16:52
Forum: IFRS-related topics
Topic: Pre-combination information
Replies: 4
Views: 45

Re: Pre-combination information

Please illustrate how this delta arises
by Marek Muc
27 May 2021, 19:56
Forum: IFRS-related topics
Topic: Associate accounting
Replies: 7
Views: 61

Re: Associate accounting

You've probably applied equity method in consolidated financial statements, so the carrying amount of associate is different than in separate financial statements
by Marek Muc
27 May 2021, 17:25
Forum: IFRS-related topics
Topic: Above-par instruments and current/non-current distinction
Replies: 19
Views: 169

Re: Above-par instruments and current/non-current distinction

Yep, you need to split the current and non-current portion unless it's held for trading: Current assets also include assets held primarily for the purpose of trading (examples include some financial assets that meet the definition of held for trading in IFRS 9) and the current portion of non-current...
by Marek Muc
27 May 2021, 16:35
Forum: IFRS-related topics
Topic: IFRS16 backdated increase in lease payments
Replies: 1
Views: 19

Re: IFRS16 backdated increase in lease payments

You can treat it as a regular lease payment, i.e. add it to the RoU asset. IFRS 16 does not require lease payments to be spread evenly over time. Whether it should be discounted or not depends on timing of payment of "overdue" additional rent.