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by Marek Muc
18 May 2022, 13:16
Forum: IFRS-related topics
Topic: IAS21 Query - bonds
Replies: 15
Views: 87

Re: IAS21 Query - bonds

so this is an EUR-denominated receivable, you don't retranslate it after initial recognition, you just record 100 EUR and ignore fx rates movements
by Marek Muc
18 May 2022, 12:26
Forum: IFRS-related topics
Topic: IAS21 Query - bonds
Replies: 15
Views: 87

Re: IAS21 Query - bonds

how much do you actually receive if the spot rate changes to 1 EUR for 2 USD?
by Marek Muc
18 May 2022, 11:05
Forum: IFRS-related topics
Topic: IAS21 Query - bonds
Replies: 15
Views: 87

Re: IAS21 Query - bonds

it seems you're mixing up monetary and non-monetary items Leo, have a read:

https://ifrscommunity.com/knowledge-bas ... ting-dates
by Marek Muc
17 May 2022, 20:45
Forum: IFRS-related topics
Topic: IAS21 Query - bonds
Replies: 15
Views: 87

Re: IAS21 Query - bonds

This sounds like some administrative task only, I would carefully consider the derecognition criteria.
by Marek Muc
17 May 2022, 19:38
Forum: IFRS-related topics
Topic: IAS21 Query - bonds
Replies: 15
Views: 87

Re: IAS21 Query - bonds

If you keep them at year-end, then use the year-end fx rate. But double check if you don't need to derecognise these bonds before year-end. BTW what's the reason for the delay between signing the contract and the actual sale? What needs to happen between these two dates. Related KB page: https://ifr...
by Marek Muc
16 May 2022, 15:34
Forum: IFRS-related topics
Topic: IFRS 9 - Loans
Replies: 31
Views: 187

Re: IFRS 9 - Loans

this part is also relevant: https://ifrscommunity.com/knowledge-base/financial-liabilities-vs-equity/#link-contracts-settled-in-the-entitys-own-equity-instruments Entered into a $9M loan that requires a minimum fixed amount of quarterly payments of $200,000 that is not interest-bearing [...]. Also a...
by Marek Muc
13 May 2022, 13:15
Forum: IFRS-related topics
Topic: Crypto assets and liablities
Replies: 17
Views: 121

Re: Crypto assets and liablities

General principles apply, I think it will be useful to look for general guidance for entities holding clients' funds, e.g. this one:

https://www.grantthornton.global/global ... oint-1.pdf
by Marek Muc
12 May 2022, 13:38
Forum: IFRS-related topics
Topic: Crypto assets and liablities
Replies: 17
Views: 121

Re: Crypto assets and liablities

it could be an interesting topic to dig into... for example, Interactive Brokers, one of the biggest broker that is a public company, shows client assets as their assets: IB.PNG https://investors.interactivebrokers.com/en/index.php?f=2244&t=10-K&i=100&d=2022-02-25&a=1645828800&fm...
by Marek Muc
12 May 2022, 00:33
Forum: IFRS-related topics
Topic: Crypto assets and liablities
Replies: 17
Views: 121

Re: Crypto assets and liablities

Well maybe 'under own name' wasn't the most accurate expression when it comes to crypto assets :lol:
by Marek Muc
12 May 2022, 00:02
Forum: IFRS-related topics
Topic: Crypto assets and liablities
Replies: 17
Views: 121

Re: Crypto assets and liablities

Good question, are you really holding them on behalf of clients, or just hold a net position in your own name
by Marek Muc
11 May 2022, 23:58
Forum: IFRS-related topics
Topic: IFRS16 - Lease Incentives
Replies: 7
Views: 141

Re: IFRS16 - Lease Incentives

If you received all those lease incentives, then you won't see any impact on lease liability now. There would be some really minor differences in terms of timing of interest expense if you had accounted for the second payment at the beginning, but I wouldn't care about it.
by Marek Muc
11 May 2022, 23:48
Forum: IFRS-related topics
Topic: Are VNAV MMFs monetary items?
Replies: 12
Views: 98

Re: Are VNAV MMFs monetary items?

Ps. What about this agenda decision:

https://www.ifrs.org/news-and-events/up ... ch-2018/#7

That could apply to fx gains or losses too
by Marek Muc
10 May 2022, 22:06
Forum: IFRS-related topics
Topic: Are VNAV MMFs monetary items?
Replies: 12
Views: 98

Re: Are VNAV MMFs monetary items?

I was thinking about paras B5.7.2A and B5.7.3 but they are not conclusive really for assets at FVTPL so I guess you're right, i.e. it is possible to show the foreign exchange impact separately from the impact of the price component
by Marek Muc
10 May 2022, 18:56
Forum: IFRS-related topics
Topic: Are VNAV MMFs monetary items?
Replies: 12
Views: 98

Re: Are VNAV MMFs monetary items?

I think that IFRS 9 mentions somewhere that you don't 'bifurcate' fx movements for assets carried at fair value but I can't find it right now, I'll try to revisit this tomorrow
by Marek Muc
10 May 2022, 17:37
Forum: General accounting and financial reporting discussion
Topic: Revaluation of subsidiary
Replies: 7
Views: 117

Re: Revaluation of subsidiary

Leo wrote: 10 May 2022, 11:10 is that possible to elect only one of them for FVTOCI?
yes, it's an election made on a share-by-share basis
Leo wrote: 10 May 2022, 11:10 Is that possible for investments initially recognised as FVTPL to subsequently opting for the option FVTOCI ?
no, it's an option available at initial recognition only
by Marek Muc
10 May 2022, 17:25
Forum: IFRS-related topics
Topic: Journal entries for ordinary shares
Replies: 5
Views: 69

Re: Journal entries for ordinary shares

as Leo wrote, the issuer does not remeasure financial instruments classified as equity

https://ifrscommunity.com/knowledge-bas ... -as-equity
by Marek Muc
10 May 2022, 17:19
Forum: IFRS-related topics
Topic: Are VNAV MMFs monetary items?
Replies: 12
Views: 98

Re: Are VNAV MMFs monetary items?

Especially because it would be weird to have an investment presented as a cash equivalent that was not a monetary item. spot on, I think that an asset that satisfies the definition of cash equivalent in IAS 7 must be a monetary asset I appreciate that this may not have a big impact on financial rep...
by Marek Muc
10 May 2022, 13:44
Forum: General accounting and financial reporting discussion
Topic: Interesting way of reporting key audit matters
Replies: 4
Views: 39

Re: Interesting way of reporting key audit matters

You're right JRSB, there's no point is showing items that scored 'low' on both axis
by Marek Muc
09 May 2022, 15:20
Forum: General accounting and financial reporting discussion
Topic: Revaluation of subsidiary
Replies: 7
Views: 117

Re: Revaluation of subsidiary

Yes IAS 27 allows to measure investments in subs under IFRS 9, which in turns allows to classify equity investments as FVOCI https://ifrscommunity.com/knowledge-base/ias-27-separate-financial-statements/#link-preparation-of-separate-financial-statements https://ifrscommunity.com/knowledge-base/ifrs-...
by Marek Muc
08 May 2022, 14:02
Forum: General accounting and financial reporting discussion
Topic: Interesting way of reporting key audit matters
Replies: 4
Views: 39

Interesting way of reporting key audit matters

I was browsing the annual report of the IFRS foundation* and noticed an interesting visualisation of key audit matters and other risks in audit report by GT: GT.PNG I think this approach can be very useful as opposed to the usual binary approach taken by auditors https://www.ifrs.org/content/dam/ifr...
by Marek Muc
06 May 2022, 23:23
Forum: IFRS-related topics
Topic: Carbon credits net zero
Replies: 4
Views: 88

Re: Carbon credits net zero

A recent publication by pwc, but I haven't read it:

https://viewpoint.pwc.com/dt/gx/en/pwc/ ... _gx_en_ext

Anything interesting in it?
by Marek Muc
06 May 2022, 13:16
Forum: IFRS-related topics
Topic: Investment in associate - Impairment?
Replies: 5
Views: 77

Re: Investment in associate - Impairment?

You would need to determine fair value anyway, but if expected proceeds are close to nil then fair value probably won't be significant enough to bother. So I would too write off the whole investment
by Marek Muc
06 May 2022, 13:14
Forum: IFRS-related topics
Topic: Investment in associate - Conso vs separate financials
Replies: 14
Views: 109

Re: Investment in associate - Conso vs separate financials

Most jurisdictions simply require each legal entity to produce separate financial statements. And if an entity is part of an IFRS group, it is allowed or required (depending on the jurisdiction) to use IFRS for those separate financial statements. If so, IAS 27 applies.
by Marek Muc
06 May 2022, 13:11
Forum: IFRS-related topics
Topic: Common control transaction
Replies: 8
Views: 1078

Re: Common control transaction

Wow, been thinking about this for over a year? ;)
by Marek Muc
06 May 2022, 09:36
Forum: IFRS-related topics
Topic: Investment in associate - Conso vs separate financials
Replies: 14
Views: 109

Re: Investment in associate - Conso vs separate financials

The possibility to use equity method in separate financial statements is a relatively recent amendment to IAS 27 (issued in 2014) so maybe your boss wasn't aware of it
by Marek Muc
05 May 2022, 20:26
Forum: IFRS-related topics
Topic: Investment in associate - Conso vs separate financials
Replies: 14
Views: 109

Re: Investment in associate - Conso vs separate financials

jrn816 wrote: 05 May 2022, 19:23 I can't find any technical reference that says this is the case so I am confused.
IAS 27.9-10
by Marek Muc
05 May 2022, 18:13
Forum: IFRS-related topics
Topic: Investment in associate - Conso vs separate financials
Replies: 14
Views: 109

Re: Investment in associate - Conso vs separate financials

Hi, you won't prepare consolidated financial statements if you don't have any subsidiaries. In separate financial statements, you can present the investment in associate at cost, under IFRS 9, or using the equity method. It's an accounting policy choice, i.e. you can decide freely. In consolidated f...