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No revenue should be allocated to the Car given away to Customers.

The cost of the Car should instead be recorded as a deduction of Gross Revenue, as a Trade Terms or Deals, at $4,000, and thus recorded to Net Sales.

This is a Cash Flow Hedge under IFRS 9 - you would record the gains/losses from the derivative (being the instrument that converted the fixed into variable interest) to the profit & loss to match the timing and recording of the interest expenses and cash flows from the existing fixed rate loan t...

Free Goods given to customers, as part of a sale arrangement, is recorded as Trade Terms or Rebates to customers, under IFRS 15, which represents a deduction of the Gross Sales, and thus is recorded to Net Sales.

1. Yes, the difference represents the value (price paid) for the Put Option in this arrangement. 2. No, valuation is performed based on "as of now" business and assets that generates future cashflows, and cannot be depended on the occurrence of a future capital project that may change the ...

Activation or Put Into Use

We entered into a lease agreement with a business who sublets the land for 3 years. Payments quarterly £10,000. From the map it shows there is a building. As a sub-lessee: 1. Do I need to separate lease for building and land? If so how do I do that (lease doesn't provide separate prices)? 2. How to...

Hi thanks for your reply. What I meant on method 1 is. I create ANOTHER set OF BS AND P&L using average rate on top of the standard ones using Month-end rate. In other word, I use the month-end rate for usual consolidated BS and P&L and once I done with that, I created another BS and PL usi...

I read this twice and figured it out - at the time when the acquisition and business combination accounting was performed - there was a screw up in the business combination accounting that you are suffering as a result of now - i explain below. Q1. Simple - in Parent's separate financial statements ...

Method 1 is not allowed because you cannot translate the foreign subsidiary's Balance Sheet into the Group Currency at average rate - must always be at the financial year-end exchange rate for Balance Sheet while Profit & Loss can be translated using the financial year's average exchange rate fo...

If you have leave (sick, special, annual, etc.) for employees and a certain number of days can be carried forward to the next financial year for utilization by the employee, you must recognize a unutilized leave provision at year-end for this carried forward leave balance, even if the leave cannot b...

Yes it does - as long as on a monthly services are rendered, supported by roles & responsibilities and hours spent, during the month by the Holding Co for the region and the Invoice, and the revenue therefore, is billed and recognized, I do not see any specific issue with the current arrangement.

For your general Accounts Receivables, being Company B in this example, you should evaluate your historical default rate % with some adjustments for the future perhaps and apply a general provision for bad debts allowance to the Accounts Receivable, e.g. based on historical trends AR aged > 180 days...