Search found 1703 matches

by Marek Muc
24 Oct 2021, 10:21
Forum: IFRS-related topics
Topic: IFRS 9-Expected Credit Losses
Replies: 5
Views: 26

Re: IFRS 9-Expected Credit Losses

Makes no sense at all!
by Marek Muc
24 Oct 2021, 08:54
Forum: IFRS-related topics
Topic: IAS12 & IAS34
Replies: 6
Views: 49

Re: IAS12 & IAS34

it could be a material difference depending on the local tax law, e.g. some tax credits/reliefs settled only on annual tax return But it will be interesting to hear from Leo what is the reason of significant difference between tax expense as per H1 tax return and ETR approach (and which country this...
by Marek Muc
24 Oct 2021, 08:51
Forum: IFRS-related topics
Topic: IFRS 9-Expected Credit Losses
Replies: 5
Views: 26

Re: IFRS 9-Expected Credit Losses

yes, it's an error warranting a retrospective restatement but are you sure that this is material? remember that you shouldn't use hindsight, i.e. don't use information that became available this year to assess ECL at previous year-end how did you conclude that this is material? https://ifrscommunity...
by Marek Muc
23 Oct 2021, 09:50
Forum: IFRS-related topics
Topic: IAS12 & IAS34
Replies: 6
Views: 49

Re: IAS12 & IAS34

So it's a change in accounting policy with retrospective application at best, but you're dangerously close to a correction of error as IAS 34 is quite clear on income tax recognition in interim FS
by Marek Muc
22 Oct 2021, 17:35
Forum: IFRS-related topics
Topic: IAS12 & IAS34
Replies: 6
Views: 49

Re: IAS12 & IAS34

How did you determine income tax charge in interim financial statements last year?
by Marek Muc
18 Oct 2021, 11:51
Forum: IFRS-related topics
Topic: IAS 20 treatment
Replies: 1
Views: 74

Re: IAS 20 treatment

can you show your debits and credits relevant to the whole arrangement (incurred expenses and received/recognised grant) more clearly please?
by Marek Muc
18 Oct 2021, 11:49
Forum: IFRS-related topics
Topic: Change in depreciation policy-IFRS Adoption
Replies: 16
Views: 849

Re: Change in depreciation policy-IFRS Adoption

wow! I'm going to add your post to our knowledge base shortly ;)
by Marek Muc
15 Oct 2021, 19:32
Forum: IFRS-related topics
Topic: Change in depreciation policy-IFRS Adoption
Replies: 16
Views: 849

Re: Change in depreciation policy-IFRS Adoption

:lol: :lol: :lol:

maybe they'll revisit this revolutionary idea in XXII century :lol:
by Marek Muc
15 Oct 2021, 17:29
Forum: IFRS-related topics
Topic: Savings prize draw accounts
Replies: 12
Views: 152

Re: Savings prize draw accounts

That may be a good solution too, to treat is as marketing expense (outside of finance costs). But this may not be in line with IFRS 15 is one believes we're in its scope.
by Marek Muc
15 Oct 2021, 16:20
Forum: IFRS-related topics
Topic: Savings prize draw accounts
Replies: 12
Views: 152

Re: Savings prize draw accounts

you're taking it out of context IMO - the bank is repaying a tiny bit of fees earned from customers
by Marek Muc
15 Oct 2021, 16:18
Forum: IFRS-related topics
Topic: Change in depreciation policy-IFRS Adoption
Replies: 16
Views: 849

Re: Change in depreciation policy-IFRS Adoption

JRSB wrote: 09 Jun 2020, 17:19 Every taxpayer in the UK reports for the period 6 April to following 5 April.
just came across :)

https://www.gov.uk/government/publicati ... r-end-date
by Marek Muc
15 Oct 2021, 15:53
Forum: IFRS-related topics
Topic: Savings prize draw accounts
Replies: 12
Views: 152

Re: Savings prize draw accounts

operating customer's bank accounts
by Marek Muc
15 Oct 2021, 09:45
Forum: IFRS-related topics
Topic: Savings prize draw accounts
Replies: 12
Views: 152

Re: Savings prize draw accounts

I think we already agreed that this is out of the scope of IFRS 9

This is not in the scope of IAS 37 IMO as (presumably) this is a contractual obligation and therefore in the scope of IFRS 15
by Marek Muc
15 Oct 2021, 09:42
Forum: IFRS-related topics
Topic: IFRS 9 General Question
Replies: 3
Views: 72

Re: IFRS 9 General Question

I understand it a bit differently. To me, unwinding of discount is a narrower term used for items recognised at discounted amount, i.e. lower than face value. For example, you buy a zero-coupon bond for $95 with a face value of $100, and then you unwind (i.e. accrue) discount to arrive at $100 at re...
by Marek Muc
14 Oct 2021, 17:52
Forum: IFRS-related topics
Topic: Savings prize draw accounts
Replies: 12
Views: 152

Re: Savings prize draw accounts

... but it's a promise made to customers, even though a customer receiving the price may be specified at a later date. So I wouldn't wait with the recognition in P&L until the payment (credit) is effected
by Marek Muc
14 Oct 2021, 17:43
Forum: IFRS-related topics
Topic: Recognizing non controlling interest based on profit sharing agreement
Replies: 11
Views: 219

Re: Recognizing non controlling interest based on profit sharing agreement

Then you would be more likely to classify this as equity (assuming no contractual repayment of the principal amount either). This page provides a neat overview on the distinction between debt and equity:

https://ifrscommunity.com/knowledge-bas ... vs-equity/
by Marek Muc
13 Oct 2021, 18:55
Forum: IFRS-related topics
Topic: Savings prize draw accounts
Replies: 12
Views: 152

Re: Savings prize draw accounts

to me, it's not an interest expense at all, I would account for it outside of financial instruments accounting

sounds more like a decrease of revenue earned from fees and commissions:
https://ifrscommunity.com/knowledge-bas ... a-customer
by Marek Muc
12 Oct 2021, 19:13
Forum: IFRS-related topics
Topic: Relation on FX on Cash in Cash Flow and Net finance
Replies: 7
Views: 280

Re: Relation on FX on Cash in Cash Flow and Net finance

well, this is not coming back to your initial question at all :D

OCI does not impact net result

can you attach here an example of P&L and CF where net result is different across those primary financial statements?
by Marek Muc
12 Oct 2021, 10:29
Forum: IFRS-related topics
Topic: Recognizing non controlling interest based on profit sharing agreement
Replies: 11
Views: 219

Re: Recognizing non controlling interest based on profit sharing agreement

To me it's also debt as you have contractual obligation to deliver cash on the money received ('rent'). Plus, as JRSB noted, there is no residual interest for the Purchaser.
by Marek Muc
08 Oct 2021, 00:56
Forum: IFRS-related topics
Topic: Expected Credit Loss
Replies: 7
Views: 262

Re: Expected Credit Loss

No, if it's a financial asset and it's debt - you need to recognise ECL
by Marek Muc
04 Oct 2021, 11:56
Forum: IFRS-related topics
Topic: IFRS 16 purchase option
Replies: 15
Views: 465

Re: IFRS 16 purchase option

I would stick to IFRS 16 requirements, non-binding lessee's verbal declarations are not enough to conclude on accounting treatment 10 years is a rather short term for a property lease, if the purchase option is for a price that is not considerably lower than fair value, I would treat it as an operat...
by Marek Muc
04 Oct 2021, 11:41
Forum: After hours
Topic: Software update
Replies: 2
Views: 239

Re: Software update

yep, mostly behind the scenes code maintenance There is one change on the front end though. Members who are subscribed to receive email notifications will receive only one email for each new topic. Previously, they received also a second notification email when a first reply to a new topic was poste...
by Marek Muc
02 Oct 2021, 21:22
Forum: IFRS-related topics
Topic: Knock off the sales Invoice amount with Purchase amount
Replies: 2
Views: 164

Re: Knock off the sales Invoice amount with Purchase amount

it seems that net presentation is more suitable, either under principal vs agent considerations or consideration payable to a customer https://ifrscommunity.com/knowledge-base/principal-vs-agent-revenue-gross-vs-net/ https://ifrscommunity.com/knowledge-base/ifrs-15-transaction-price/#link-considerat...
by Marek Muc
02 Oct 2021, 21:18
Forum: IFRS-related topics
Topic: IFRS 16 purchase option
Replies: 15
Views: 465

Re: IFRS 16 purchase option

How does the exercise price of the option compare with the fair value of the building? Is the exercise price significantly lower than fair value?
by Marek Muc
02 Oct 2021, 19:55
Forum: After hours
Topic: Software update
Replies: 2
Views: 239

Software update

Hi All,
I've just updated the forum software, please let me know if you notice anything unexpected.

M.
by Marek Muc
23 Sep 2021, 21:24
Forum: IFRS-related topics
Topic: Relation on FX on Cash in Cash Flow and Net finance
Replies: 7
Views: 280

Re: Relation on FX on Cash in Cash Flow and Net finance

Note that some fx effects on cash are not reflected in P&L, but go through OCI if they arise on translation of a foreign operation. Therefore, they won't be included in the finance costs line that is shown as an adjustment to net income in cash flow statement
by Marek Muc
23 Sep 2021, 10:51
Forum: IFRS-related topics
Topic: Prepayments
Replies: 7
Views: 292

Re: Prepayments

It couldn't be more relevant :)

And you are obviously right that this is not a financial instrument.

So I guess the best option is to keep it as a prepayment and accrue interest income over time