Search found 3211 matches

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: 11
Views: 78

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: 11
Views: 78

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: 11
Views: 78

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: 30

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: 37

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: 36

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: 72

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: 11
Views: 78

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: 40

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: 72

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: 40

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: 94

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: 337

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: 50

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...
by Marek Muc
12 Mar 2024, 17:41
Forum: IFRS-related topics
Topic: IAS 40 Cost model with annual impairment
Replies: 3
Views: 364

Re: IAS 40 Cost model with annual impairment

Their approach is correct. Read more about impairment at https://ifrscommunity.com/knowledge-bas ... al-assets/
by Marek Muc
07 Mar 2024, 18:33
Forum: IFRS-related topics
Topic: IFRS 16 for underdeveloped land
Replies: 4
Views: 359

Re: IFRS 16 for underdeveloped land

I'm not familiar with arrangements like these. Based on your description, it seems that straight-line P/L recognition for non-refundable lease payments would be the best approach. Ultimately, it's the responsibility of the lessee to utilise the land efficiently. Considering the development potential...
by Marek Muc
07 Mar 2024, 17:44
Forum: IFRS-related topics
Topic: IAS 24 Related Party Disclosures
Replies: 2
Views: 325

Re: IAS 24 Related Party Disclosures

The list provided in IAS 24.9 is not exhaustive, and an entity may identify, for example, a director’s brother as a related party.
by Marek Muc
07 Mar 2024, 17:41
Forum: IFRS-related topics
Topic: IAS 40 Land and buildings
Replies: 5
Views: 435

Re: IAS 40 Land and buildings

yes
by Marek Muc
07 Mar 2024, 17:38
Forum: IFRS-related topics
Topic: IFRS 16 for underdeveloped land
Replies: 4
Views: 359

Re: IFRS 16 for underdeveloped land

Please provide a detailed explanation of the terms of this arrangement, they aren't clear to me.
by Marek Muc
07 Mar 2024, 17:12
Forum: IFRS-related topics
Topic: IFRS 16 Variable EIR
Replies: 3
Views: 327

Re: IFRS 16 Variable EIR

These are variable lease payments and you'll need to reassess the lease liability at reach date the rate resets: https://ifrscommunity.com/knowledge-base/ifrs-16-recognition-and-measurement-of-leases/#variable-lease-payments https://ifrscommunity.com/knowledge-base/ifrs-16-recognition-and-measuremen...
by Marek Muc
07 Mar 2024, 17:10
Forum: IFRS-related topics
Topic: Income Provision for Trade Payables
Replies: 2
Views: 297

Re: Income Provision for Trade Payables

The entry you proposed seems odd! The statute of limitations, as per your local law, may soon apply. Once it does, the right to legal action for debt recovery expires and you'll be able to derecognise the liability and recognise a gain in P/L. BTW, why the creditors aren't actively seeking payment?
by Marek Muc
05 Mar 2024, 15:39
Forum: IFRS-related topics
Topic: What constitutes "control" before goods are sold
Replies: 6
Views: 3548

Re: What constitutes "control" before goods are sold

Please start a new topic describing the situation you're dealing with.
by Marek Muc
05 Mar 2024, 15:38
Forum: IFRS-related topics
Topic: Fair Value of Investment Property
Replies: 6
Views: 428

Re: Fair Value of Investment Property

Always consider the 'highest and best use' regardless of the valuation method. Also, remember that for assets valued at fair value, there are no impairment losses, only changes in fair value. If two valuation techniques yield significantly different results, you need to recalibrate one of them. Sinc...
by Marek Muc
01 Mar 2024, 17:03
Forum: IFRS-related topics
Topic: Fair Value of Investment Property
Replies: 6
Views: 428

Re: Fair Value of Investment Property

In principle, the valuation technique you select should yield the same fair value. If the income approach yields much higher fair value compared to the market approach, it means that the necessary infrastructure investments and related risks might not have been adequately accounted for in the income...
by Marek Muc
01 Mar 2024, 16:15
Forum: IFRS-related topics
Topic: Fair Value of Investment Property
Replies: 6
Views: 428

Re: Fair Value of Investment Property

Fair value only reflects market conditions, meaning your company's financial issues shouldn't affect land valuation. Unless these issues stem directly from the land, like challenges in securing building permits etc. In such cases, these challenges should be reflected in both income and market valuat...
by Marek Muc
29 Feb 2024, 16:59
Forum: IFRS-related topics
Topic: Contra revenue vs expense
Replies: 13
Views: 854

Re: Contra revenue vs expense

Nothing specific really. I'd say that, in IFRS 15 terms, you need to determine whether your company acts as an agent between the stationery seller and your client, by applying this guidance: https://ifrscommunity.com/knowledge-bas ... ss-vs-net/
by Marek Muc
29 Feb 2024, 16:56
Forum: IFRS-related topics
Topic: IAS 16 - PPE transfer to Inventory
Replies: 7
Views: 504

Re: IAS 16 - PPE transfer to Inventory

I see, so some scrap parts are being repurposed. This isn't covered by IFRS, and I'd suggest estimating the proportion of these rods in the total carrying amount of PP&E, and then reclassifying this amount to inventory.
by Marek Muc
29 Feb 2024, 16:53
Forum: General accounting and financial reporting discussion
Topic: Depreciation of Diagnostic Laboratory Equipment
Replies: 8
Views: 493

Re: Depreciation of Diagnostic Laboratory Equipment

Tax depreciation rates differ from IFRS depreciation rates in their purpose, so don't depend heavily on tax rates. I doubt that this specific asset class has been analysed in terms of accounting depreciation rates. But you need to estimate an entity-specific useful life anyway. For example, a luxury...
by Marek Muc
29 Feb 2024, 10:35
Forum: General accounting and financial reporting discussion
Topic: Depreciation of Diagnostic Laboratory Equipment
Replies: 8
Views: 493

Re: Depreciation of Diagnostic Laboratory Equipment

I've moved this topic to 'General accounting and financial reporting discussion'. Please don't post general questions under 'IFRS-related topics', thanks!