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This analysis doesn't make sense. The only IFRS-compliant approach is to recognise the RoU asset and add this payment to its carrying amount. If they recognise it as an intangible asset, they're doing it incorrectly but at lease this wouldn't misstate the P/L statement (as far as this payment is con...

I'd prepare financial statements for the 12 months ending 31 December 2023 with a shorter comparative period. This will be consistent with the company's annual reporting period. As JRSB mentioned, they should verify if national law permits them to skip preparing financial statements for 31 December ...

I'd capitalise this payment as incremental costs of obtaining a lease and include it in the carrying amount of RoU asset (assuming IFRS-compliant accounting).

I'd use yields on government bonds in economies with similar risk profiles and economic conditions then.

Which country is it? In general, this applies: https://ifrscommunity.com/knowledge-base/deferred-tax/#uncertain-tax-treatments Deferred tax isn't a solution to this uncertainty as deferred tax arises on temporary differences only which fundamentally are just timing variations. Any expenses not allow...

What's the practice for determining risk-free rate for various discounting purposes for your currency then?

Worked example available in https://ifrscommunity.com/knowledge-bas ... justed-eir

@karleon37 - Can you explain a bit more why is it that you're not able to track dividends declared while being able to measure FV of the underlying investments? Re. Interest income on debt at FV. IFRS 7.B5(e) introduces an interesting nuance I didn't appreciate before. So it's acceptable to present ...

I also would recognise this as a loan receivable from the shareholder with any off-market terms recognised as described in https://ifrscommunity.com/knowledge-bas ... ate-loans/

If ABC operates as a marketplace and also handles delivery similar to Amazon's FBA model, they might only recognise gross revenue for the delivery service plus the commission on the sale price. Could you provide more details about ABC's business model, Nazmus?

But if it's a finance lease, the RoU has been derecognised. So I'd recognise all reassessments of the lease liability on the head lease through P/L, even those that normally would be recognised as an addition to RoU asset. What are your thoughts on this, Ketan?

I agree with Ketan's views. It's also worth mentioning that IAS 37 doesn't apply to items that are covered by other IFRSs (IAS 37.1(c)).

1. immediately prior to the modification
2. yes, you should be looking at amortised cost of the loan

Thanks! They certainly hold a different opinion.

@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.