Search found 3303 matches
- 17 May 2024, 17:04
- Forum: IFRS-related topics
- Topic: Sublease for a back to back contract
- Replies: 2
- Views: 53
Re: Sublease for a back to back contract
Posting here often helps clarify a problem in one's mind ;) I agree with your perspective. I would focus on whether Entity B has the practical ability to store goods from other clients in that warehouse. If not, I would understand why and then reconcile these reasons with IFRS 16 criteria for lease ...
- 16 May 2024, 17:03
- Forum: IFRS-related topics
- Topic: Payments to previous tenants
- Replies: 3
- Views: 34
Re: Payments to previous tenants
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...
- 16 May 2024, 16:22
- Forum: IFRS-related topics
- Topic: First financial period as per IFRS
- Replies: 4
- Views: 23
Re: First financial period as per IFRS
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 ...
- 16 May 2024, 16:17
- Forum: IFRS-related topics
- Topic: Payments to previous tenants
- Replies: 3
- Views: 34
Re: Payments to previous tenants
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).
- 16 May 2024, 16:15
- Forum: IFRS-related topics
- Topic: IAS 19: actuarial assumptions, discount rate
- Replies: 4
- Views: 75
Re: IAS 19: actuarial assumptions, discount rate
I'd use yields on government bonds in economies with similar risk profiles and economic conditions then.
- 15 May 2024, 18:14
- Forum: IFRS-related topics
- Topic: Uncertainty over Income Tax Treatments
- Replies: 2
- Views: 37
Re: Uncertainty over Income Tax Treatments
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...
- 15 May 2024, 18:06
- Forum: IFRS-related topics
- Topic: IAS 19: actuarial assumptions, discount rate
- Replies: 4
- Views: 75
Re: IAS 19: actuarial assumptions, discount rate
What's the practice for determining risk-free rate for various discounting purposes for your currency then?
- 10 May 2024, 21:06
- Forum: IFRS-related topics
- Topic: POCI Credit Adjusted EIR
- Replies: 2
- Views: 56
Re: POCI Credit Adjusted EIR
Worked example available in https://ifrscommunity.com/knowledge-bas ... justed-eir
- 10 May 2024, 21:04
- Forum: IFRS-related topics
- Topic: FVTPL bonds interest shares dividend
- Replies: 9
- Views: 119
Re: FVTPL bonds interest shares dividend
@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 ...
- 10 May 2024, 20:36
- Forum: IFRS-related topics
- Topic: Financial guarantee
- Replies: 2
- Views: 50
Re: Financial guarantee
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/
- 09 May 2024, 15:44
- Forum: IFRS-related topics
- Topic: How to recognize Revenue for e-commerce.
- Replies: 5
- Views: 103
Re: How to recognize Revenue for e-commerce.
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?
- 06 May 2024, 16:22
- Forum: IFRS-related topics
- Topic: IFRS 16 Lease (Sublease)
- Replies: 5
- Views: 109
Re: IFRS 16 Lease (Sublease)
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?
- 06 May 2024, 16:00
- Forum: IFRS-related topics
- Topic: Termination Benefits IAS 19 or IAS 37
- Replies: 3
- Views: 440
Re: Termination Benefits IAS 19 or IAS 37
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)).
- 06 May 2024, 15:40
- Forum: IFRS-related topics
- Topic: IFRS 2 fixed bonus pool
- Replies: 13
- Views: 321
- 02 May 2024, 17:22
- Forum: IFRS-related topics
- Topic: variable debt repricing
- Replies: 1
- Views: 60
Re: variable debt repricing
1. immediately prior to the modification
2. yes, you should be looking at amortised cost of the loan
2. yes, you should be looking at amortised cost of the loan
- 02 May 2024, 17:18
- Forum: IFRS-related topics
- Topic: IFRS 2 fixed bonus pool
- Replies: 13
- Views: 321
Re: IFRS 2 fixed bonus pool
Thanks! They certainly hold a different opinion.
- 01 May 2024, 13:52
- Forum: IFRS-related topics
- Topic: IFRS 2 fixed bonus pool
- Replies: 13
- Views: 321
Re: IFRS 2 fixed bonus pool
@IFRS1054 - Please share the most relevant excerpt
- 01 May 2024, 13:50
- Forum: IFRS-related topics
- Topic: Ias 36 question - impairment
- Replies: 4
- Views: 96
Re: Ias 36 question - impairment
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/
* Inspired by https://quoteinvestigator.com/2017/11/30/salary/
- 01 May 2024, 13:45
- Forum: IFRS-related topics
- Topic: Group Restructuring - Common control
- Replies: 6
- Views: 146
Re: Group Restructuring - Common control
If Subsidiary A doesn’t have enough accumulated profits, this should be recognised as a decrease in the investment in A.
- 01 May 2024, 13:43
- Forum: IFRS-related topics
- Topic: Pre-Operational Expenses treatment
- Replies: 7
- Views: 120
Re: Pre-Operational Expenses treatment
(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...
- 01 May 2024, 13:33
- Forum: IFRS-related topics
- Topic: Debt pricing re-set
- Replies: 16
- Views: 308
Re: Debt pricing re-set
The tenor mismatch is likely to cause the loan to fail the SPPI test (IFRS 9.B4.1.9A-E).
- 01 May 2024, 13:28
- Forum: IFRS-related topics
- Topic: Exit Fee - SPPI test
- Replies: 4
- Views: 84
Re: Exit Fee - SPPI test
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.
- 01 May 2024, 13:25
- Forum: General accounting and financial reporting discussion
- Topic: Overall vs planning materiality
- Replies: 2
- Views: 127
Re: Overall vs planning materiality
I see, thank you!
- 30 Apr 2024, 15:42
- Forum: General accounting and financial reporting discussion
- Topic: Overall vs planning materiality
- Replies: 2
- Views: 127
Overall vs planning materiality
What’s the difference between overall and planning materiality?
https://www.bp.com/content/dam/bp/busin ... f#page=168
https://www.bp.com/content/dam/bp/busin ... f#page=168
- 29 Apr 2024, 17:15
- Forum: IFRS-related topics
- Topic: IFRS 2 fixed bonus pool
- Replies: 13
- Views: 321
Re: IFRS 2 fixed bonus pool
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.
- 29 Apr 2024, 17:09
- Forum: IFRS-related topics
- Topic: Debt pricing re-set
- Replies: 16
- Views: 308
Re: Debt pricing re-set
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
- 29 Apr 2024, 17:04
- Forum: IFRS-related topics
- Topic: IFRS 2 fixed bonus pool
- Replies: 13
- Views: 321
Re: IFRS 2 fixed bonus pool
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.
- 26 Apr 2024, 18:15
- Forum: IFRS-related topics
- Topic: IFRS 2 fixed bonus pool
- Replies: 13
- Views: 321
Re: IFRS 2 fixed bonus pool
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.
- 26 Apr 2024, 18:09
- Forum: IFRS-related topics
- Topic: Debt pricing re-set
- Replies: 16
- Views: 308
Re: Debt pricing re-set
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?
- 26 Apr 2024, 18:03
- Forum: IFRS-related topics
- Topic: Recognition the right to use the software as an intangible asset or expense
- Replies: 13
- Views: 616
Re: Recognition the right to use the software as an intangible asset or expense
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.