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@IFRS1054 - Please share the most relevant excerpt

It is difficult to get a man to understand something, when his workload will be much lower if he doesn't understand it

* Inspired by https://quoteinvestigator.com/2017/11/30/salary/

If Subsidiary A doesn’t have enough accumulated profits, this should be recognised as a decrease in the investment in A.

(And sorry for long question) That question was the perfect length! :lol: Directly attributable costs must be allocated as a matter of fact. If the involvement of C-level executives remains consistent over the years, and the company decides to include this as part of the PP&E's cost (BTW, excel...

The tenor mismatch is likely to cause the loan to fail the SPPI test (IFRS 9.B4.1.9A-E).

I'd say it is essentially a commission, but it's settled at the end rather than upfront. This does not cause the loan to fail the SPPI test IMO.

I see, thank you!

What’s the difference between overall and planning materiality?

https://www.bp.com/content/dam/bp/busin ... f#page=168

Only the monetary amount is guaranteed, not the number of shares. So, the shares are merely a method of settlement, not the actual consideration for the services performed.

This change of a benchmark rate will result in a one-off P/L gain or loss as in https://ifrscommunity.com/knowledge-bas ... tual-terms

Thanks for illustrating this. From what I can see, this is purely within the scope of IAS 19 and not IFRS 2, given that the bonus is not dependent on share value.

Is the total bonus amount fixed, with the settlement being either in cash or shares? In other words, does this mean a variable number of shares is required to settle the fixed bonus amount? It would be helpful if you could provide a brief numerical example to illustrate this arrangement.

How do handle each tranche having distinct initial recognition dates while being accounted for as a single financial asset/liability? Does each new tranche lead to a one-off P/L adjustment to the amortised cost of earlier ones?

If you provide clients with a software package that they can install on their own IT infrastructure, it can be classified as an intangible asset.

There were no changes in IFRS in this respect.

It is a common control transaction but not a business combination under common control because no party gains control over a business that it didn't already control. Regarding A's separate financial statements, see https://ifrscommunity.com/knowledge-base/intragroup-transactions-in-separate-financia...

See the second example in https://ifrscommunity.com/knowledge-bas ... ate-loans/

Seems like a SaaS solution i.e. an access to the app installed on vendor's infrastructure -> revenue expense rather than an intangible asset: https://ifrscommunity.com/knowledge-bas ... rvice-saas

Please provide more details on the terms of the arrangement between the software developer and its clients

@hubertd - I'd say each drawdown is subject to its own amortised cost calculation, independent of other tranches within the same loan facility.

What's your opinion after reading our knowledge base article? https://ifrscommunity.com/knowledge-bas ... g-a-lease/

What are the reasons for this change?

Are these fees treated as separate performance obligations? If they aren't, how do you recognise revenue for the performance obligations that include these fees?

https://ifrscommunity.com/knowledge-bas ... obligation

As I see it, this doesn't constitute a modification since the repricing occurs under the original terms. Technically, you will need to recalculate the amortised cost using the revised cash flows and the original EIR. However, as the interest rates remain unchanged at the consolidation date, there wi...

There won't be any P/L impact, just a new RoU asset and lease liability:
https://ifrscommunity.com/knowledge-bas ... rate-lease

My question is that should we even be recognizing the asset in the books of the lessee in the first place as for the lack of lessee's control over the leasehold improvement to later reduce it by the reimbursement amount? It's quite common to recognise leasehold improvements as assets by lessees. Fo...

Licences for on-premise use can be recognised as intangible assets by your clients. Conversely, if it's just an access to software on your servers, then it's a revenue expense. See: https://ifrscommunity.com/knowledge-base/recognition-and-cost-of-intangible-assets/#software-as-a-service-saas The dev...

Mapu22 wrote: ↑19 Apr 2024, 13:21 First I have to book the premium to p&l. DR option CR cost

Since when costs are booked on the credit side? And you seem to missing the cash payment from these initial entries. Try again

It's a business combination under common control, so you have lots of flexibility in how you account for this transaction: https://ifrscommunity.com/knowledge-bas ... on-control