Search found 1627 matches

by Marek Muc
21 Jul 2021, 16:43
Forum: IFRS-related topics
Topic: Financial Assets Classification for Mutual Fund
Replies: 5
Views: 63

Re: Financial Assets Classification for Mutual Fund

The only reasonable intention is to sell this bond before its maturity, so FVOCI in my opinion. This is also consistent with common sense, because you do need to sell this bond before maturity
by Marek Muc
21 Jul 2021, 09:17
Forum: IFRS-related topics
Topic: Financial Assets Classification for Mutual Fund
Replies: 5
Views: 63

Re: Financial Assets Classification for Mutual Fund

SPPI test and business model considerations are completely different things, have a look at this page, give it some more thought and post back your reflections:

https://ifrscommunity.com/knowledge-bas ... abilities/
by Marek Muc
20 Jul 2021, 13:18
Forum: IFRS-related topics
Topic: IFRS 16 - Lease Modification
Replies: 1
Views: 30

Re: IFRS 16 - Lease Modification

there's no defined order of priority as the impacts can be calculated in any order
by Marek Muc
19 Jul 2021, 10:31
Forum: IFRS-related topics
Topic: IFRS 16 - Determination of index/rate
Replies: 2
Views: 18

Re: IFRS 16 - Determination of index/rate

a. https://ifrscommunity.com/knowledge-base/ifrs-16-recognition-and-measurement-of-leases/#link-interest-rate-implicit-in-the-lease b. https://ifrscommunity.com/knowledge-base/ifrs-16-recognition-and-measurement-of-leases/#link-incremental-borrowing-rate c. those rates should be stated in the contract
by Marek Muc
16 Jul 2021, 18:33
Forum: IFRS-related topics
Topic: IAS 36 Impairment added to the cost of another asset?
Replies: 6
Views: 67

Re: IAS 36 Impairment added to the cost of another asset?

well, in that case there is no room for accelerated depreciation, what do you think JRSB?
by Marek Muc
15 Jul 2021, 12:54
Forum: IFRS-related topics
Topic: Current or non-current loan
Replies: 54
Views: 774

Re: Current or non-current loan

an important update: https://www.ifrs.org/news-and-events/updates/iasb/2021/iasb-update-june-2021/#6 The Board tentatively decided to amend IAS 1 so that: a. it specifies that if the right to defer settlement for at least 12 months is subject to an entity complying with conditions after the reportin...
by Marek Muc
15 Jul 2021, 10:58
Forum: IFRS-related topics
Topic: IFRS16 - Sublease
Replies: 4
Views: 62

Re: IFRS16 - Sublease

in the original post, you asked about accounting for the head lease :)

the sublease will be a finance lease under IFRS 16.63(c)
by Marek Muc
14 Jul 2021, 17:39
Forum: IFRS-related topics
Topic: IFRS 16 - Revision of Cancellable Period
Replies: 3
Views: 36

Re: IFRS 16 - Revision of Cancellable Period

oh, I thought the overall term was extended

so what's the impact on lease term and expected payments?
by Marek Muc
14 Jul 2021, 17:38
Forum: IFRS-related topics
Topic: IAS 36 Impairment added to the cost of another asset?
Replies: 6
Views: 67

Re: IAS 36 Impairment added to the cost of another asset?

that's clever 8-)

@zaur-511, what's the trigger for the impairment? did the equipment broke down or something?
by Marek Muc
14 Jul 2021, 15:27
Forum: IFRS-related topics
Topic: IFRS16 - Sublease
Replies: 4
Views: 62

Re: IFRS16 - Sublease

you are a lessee when it comes to the head lease, not a lessor, so the distinction between operating lease and finance lease does not apply to the head lease, hm?

https://ifrscommunity.com/knowledge-bas ... -subleases
by Marek Muc
09 Jul 2021, 20:26
Forum: General accounting and financial reporting discussion
Topic: Car Rental Accounting treatment
Replies: 1
Views: 89

Re: Car Rental Accounting treatment

strictly speaking you need to accrue revenue for those 5 days of June as you already earned part of rental income as at 30.06.2021
by Marek Muc
09 Jul 2021, 13:40
Forum: IFRS-related topics
Topic: Loss of control in a subsidiary
Replies: 3
Views: 87

Re: Loss of control in a subsidiary

Hi Leo, different question is being asked :D @kst, the reasoning of the IASB is set out in Basis for Conclusions paragraphs to IFRS 10: BCZ168–BCZ179 I guess the management needs to blame those silly accounting standards :D Warren Buffet often does that, e.g.: As I’ve emphasized many times, Charlie ...
by Marek Muc
09 Jul 2021, 13:32
Forum: IFRS-related topics
Topic: IAS 36 Impairment added to the cost of another asset?
Replies: 6
Views: 67

Re: IAS 36 Impairment added to the cost of another asset?

Hi, no, the impairment charge cannot be recognised in the cost of another asset, see paragraphs IAS 36.60-61
by Marek Muc
08 Jul 2021, 13:14
Forum: IFRS-related topics
Topic: IFRS 16_Cars right to purchase
Replies: 4
Views: 57

Re: IFRS 16_Cars right to purchase

yes this falls under IFRS 16 irrespective of whether the entity has the purchase option or not

https://ifrscommunity.com/knowledge-bas ... g-a-lease/
by Marek Muc
07 Jul 2021, 10:30
Forum: IFRS-related topics
Topic: IFRS16:32
Replies: 6
Views: 58

Re: IFRS16:32

I don't think you need the determine the cost of PP&E on reclassification, just carry on with the cost and carrying value of RoU
but it's true that there are no rules for such a reclassification
by Marek Muc
07 Jul 2021, 09:55
Forum: IFRS-related topics
Topic: IFRS16:32
Replies: 6
Views: 58

Re: IFRS16:32

yep, I would reclassify from RoU to PP&E when the lease ends and ownership is transferred to the lessee
besides, IFRS 16 allows to (and many entities do) show RoU as part of PP&E
by Marek Muc
06 Jul 2021, 11:31
Forum: IFRS-related topics
Topic: IFRS 16_Cars right to purchase
Replies: 4
Views: 57

Re: IFRS 16_Cars right to purchase

as I understand, it is Company X that leases the car, so yes, IFRS 16 applies the question is whether the purchase option should be taken into account by Company X when eg measuring lease liability, but if the contract is clear that only the employee can purchase the car, I guess Company X can ignor...
by Marek Muc
03 Jul 2021, 18:53
Forum: IFRS-related topics
Topic: IFRS 5
Replies: 3
Views: 54

Re: IFRS 5

IAS 2.38: The amount of inventories recognised as an expense during the period, which is often referred to as cost of sales , consists of those costs previously included in the measurement of inventory that has now been sold and unallocated production overheads and abnormal amounts of production cos...
by Marek Muc
03 Jul 2021, 13:31
Forum: IFRS-related topics
Topic: IFRS 5
Replies: 3
Views: 54

Re: IFRS 5

Hi, why ask me only instead of the whole community? ;)
by Marek Muc
02 Jul 2021, 09:15
Forum: IFRS-related topics
Topic: Consolidation Step Acquisition
Replies: 7
Views: 110

Re: Consolidation Step Acquisition

I guess that's in the first post in this topic :)
by Marek Muc
01 Jul 2021, 09:40
Forum: IFRS-related topics
Topic: Customer contracts under IFRS 3
Replies: 5
Views: 60

Re: Customer contracts under IFRS 3

tpeter81, these negative future cash flows are a result of the prepayment, which is recognised as a contract liability. Contract liability is the answer to your question. However, P&L impact will still be positive, as the whole amount of revenue (50 in your example) is still to be recognised in the ...
by Marek Muc
30 Jun 2021, 17:56
Forum: IFRS-related topics
Topic: Customer contracts under IFRS 3
Replies: 5
Views: 60

Re: Customer contracts under IFRS 3

Hi, first of all, the whole customer relationship is recognised as an asset, not only open orders if an order was prepaid, no revenue had been recognised, but this prepayment is a contract liability to be recognised when doing PPA: https://ifrscommunity.com/knowledge-base/ifrs-15-contract-assets-and...
by Marek Muc
29 Jun 2021, 16:57
Forum: IFRS-related topics
Topic: Consolidation Step Acquisition
Replies: 7
Views: 110

Re: Consolidation Step Acquisition

it seems to me that you're now talking about the mechanics of your consolidation software and how it attributes equity items to consolidated entities
by Marek Muc
29 Jun 2021, 13:29
Forum: IFRS-related topics
Topic: Capitalization of internally generated assets
Replies: 7
Views: 93

Re: Capitalization of internally generated assets

if you purchased this data subscription to develop your own intangible asset, I would treat subscription fee as any other professional fee and include it as part of the cost of new asset if recognition criteria are satisfied
by Marek Muc
29 Jun 2021, 13:08
Forum: IFRS-related topics
Topic: IFRS to local standard transition
Replies: 2
Views: 45

Re: IFRS to local standard transition

yep, that should be dealt with by your local GAAP

BTW, why do you want to transition back to local GAAP?
by Marek Muc
28 Jun 2021, 17:26
Forum: IFRS-related topics
Topic: Consolidation Step Acquisition
Replies: 7
Views: 110

Re: Consolidation Step Acquisition

it's much too loooong I'm afraid, try phrasing it as a short and succint question
by Marek Muc
28 Jun 2021, 17:23
Forum: IFRS-related topics
Topic: Borrowing Costs - Loan taken to construct a building was waived off and can it be set off against the asset?
Replies: 3
Views: 59

Re: Borrowing Costs - Loan taken to construct a building was waived off and can it be set off against the asset?

ok so this loan was repaid with proceeds from the sale of this piece of land, I don't see any basis for deducting this ammount from the carrying amount of the asset under construction In consolidated FS, I would show it as disposal of land, in parent's separate FS as capital withdrawal from subsidiary
by Marek Muc
28 Jun 2021, 17:19
Forum: IFRS-related topics
Topic: Capitalization of internally generated assets
Replies: 7
Views: 93

Re: Capitalization of internally generated assets

As I see it, migrating data from one system to another is akin to "expenditure on relocating or reorganising part or all of an entity" which is recognised as revenue expense in P&L under IAS 38.69(d)