Do you mean to treat it as a "new lease agreement" and to calculate the right of use by discounting the lease payments from the date of the extension of the agreement until its expiration (i.e. after 9 months)?
Thank you
Search found 37 matches
- 23 Apr 2024, 09:52
- Forum: IFRS-related topics
- Topic: Extension of lease agreement
- Replies: 6
- Views: 57
- 23 Apr 2024, 07:29
- Forum: IFRS-related topics
- Topic: Extension of lease agreement
- Replies: 6
- Views: 57
Re: Extension of lease agreement
Thank you for your answer
- 22 Apr 2024, 15:41
- Forum: IFRS-related topics
- Topic: Extension of lease agreement
- Replies: 6
- Views: 57
Extension of lease agreement
For a time charter hire agreement of a vessel with duration of more than 12 months, a right of use of the vessel should be recognized on the balance sheet of the charterer. If at the expiration of the hire period the parties signed an extension of the existing time charter hire agreement for further...
- 13 Nov 2023, 17:15
- Forum: IFRS-related topics
- Topic: Sub-lease
- Replies: 2
- Views: 302
Re: Sub-lease
Thank you
- 11 Nov 2023, 18:42
- Forum: IFRS-related topics
- Topic: Sub-lease
- Replies: 2
- Views: 302
Sub-lease
Hello, In the cases of sub-lease, where the intermediate lessor derecognize the rights of use and recognize the investment in sublease. My question is whether the difference between the right of use and the investment in sublease must be posted to P&L immediately or whether it should be posted i...
- 23 Oct 2023, 12:40
- Forum: IFRS-related topics
- Topic: Deferred tax on revaluation of PPE
- Replies: 3
- Views: 537
Re: Deferred tax on revaluation of PPE
Thank you a lot!
- 20 Oct 2023, 13:55
- Forum: IFRS-related topics
- Topic: Deferred tax on revaluation of PPE
- Replies: 3
- Views: 537
Deferred tax on revaluation of PPE
Hello, I have a question about the deferred tax on revaluation of immovable property, which is under the category of PPE. A company bought a building for EUR 1,000,000 and at the year end this building was revalued to EUR 1,500,000. The tax rate is 10%, which means that the deferred tax on revaluati...
- 25 Jul 2023, 16:43
- Forum: IFRS-related topics
- Topic: Negative goodwill from SWAP contract
- Replies: 2
- Views: 824
Re: Negative goodwill from SWAP contract
Dear Marec, thank you for your really useful answer!!
- 24 Jul 2023, 16:57
- Forum: IFRS-related topics
- Topic: Negative goodwill from SWAP contract
- Replies: 2
- Views: 824
Negative goodwill from SWAP contract
Hi, I have a question about the negative goodwill on acquisition of a subsidiary in the consolidation. The company A acquired the company B at the price of US$10.000. At the date of acquisition, the fair value of the net assets of company A was US$11.000, including an interest rate SWAP contract, wh...
- 06 Jul 2023, 16:31
- Forum: IFRS-related topics
- Topic: Interest rate swaps
- Replies: 2
- Views: 3259
Interest rate swaps
A company was entered into an interest rate swap with the Bank in order to convert its floating borrowing interest rate into fixed. Before the expiration date of the swap contract, the company agreed with the bank to terminate it. At the time of termination, the fair value of the swap was in favor o...
- 01 Jun 2023, 16:52
- Forum: IFRS-related topics
- Topic: Control - consolidated accounts
- Replies: 13
- Views: 1751
Control - consolidated accounts
Hi A company A has entered into an agreement in 2022 for the purchase of the 100% of the share capital of the company B, in two instalments. It has bought and paid for 49% in 2022 and is obliged to buy the other 51% by 31/12/2024 (it has not bought it yet). The whole deal (not just the 51%) is subje...
- 22 May 2023, 10:28
- Forum: IFRS-related topics
- Topic: Leases in vessels industry
- Replies: 4
- Views: 666
Re: Leases in vessels industry
Thank you Marek!
- 21 May 2023, 19:04
- Forum: IFRS-related topics
- Topic: Leases in vessels industry
- Replies: 4
- Views: 666
Re: Leases in vessels industry
Hi Marec, For example, a company committed to lease a vessel under time charter hire agreement (not bareboat hire) for a period of 18 months at a daily hire rate of EUR 10.000. This arrangement, is obviously subject to the provisions of IFRS 16 and consequently a right of use asset should be recogni...
- 19 May 2023, 16:05
- Forum: IFRS-related topics
- Topic: Leases in vessels industry
- Replies: 4
- Views: 666
Leases in vessels industry
A company recognized a right of use to reflect its contractual obligation for the hire of a vessel under time charter for a period which exceeds 12 months. How can they reflect properly the future off-hire periods and the delays? Is there an exemption from IFRS 16 of the time charter hire agreements...
- 09 Nov 2022, 10:32
- Forum: IFRS-related topics
- Topic: Capitalization of mortgage fees
- Replies: 7
- Views: 1679
Re: Capitalization of mortgage fees
Ok, therefore it should be amortized over the useful life of the asset and not over the lifecycle of the loan. Right?
- 09 Nov 2022, 09:46
- Forum: IFRS-related topics
- Topic: Capitalization of mortgage fees
- Replies: 7
- Views: 1679
Re: Capitalization of mortgage fees
The capitalization of the mortgage fees should be done in PPE as part of the value of the factory or separately as deferred financing costs?
Thank you
Thank you
- 09 Nov 2022, 08:54
- Forum: IFRS-related topics
- Topic: Capitalization of mortgage fees
- Replies: 7
- Views: 1679
Re: Capitalization of mortgage fees
Thank you for your answer. Therefore should be capitalized and amortized as part of the interest over the lifecycle of the loan?
- 08 Nov 2022, 16:08
- Forum: IFRS-related topics
- Topic: Capitalization of mortgage fees
- Replies: 7
- Views: 1679
Capitalization of mortgage fees
I have a question in relation to the treatment of loan mortgage fees. A company will apply to the bank to obtain a loan for the construction of a factory, with a guarantee the mortgage of a piece of land which belongs to the company. The company will pay a significant amount as mortgaged charges as ...
- 09 Oct 2022, 18:48
- Forum: IFRS-related topics
- Topic: ECL on bank current accounts
- Replies: 14
- Views: 36238
Re: ECL on bank current accounts
Thank you Jakob. Very useful article!
- 09 Oct 2022, 12:14
- Forum: IFRS-related topics
- Topic: ECL on bank current accounts
- Replies: 14
- Views: 36238
Re: ECL on bank current accounts
Hi This is the reason for which I placed this question in the forum! I was confused by what I was reading in the various technical articles and from the discussions with colleagues about ECL on bank balances. Some articles and colleagues argue that the ECL on bank deposits are applicable on deposits...
- 05 Oct 2022, 08:17
- Forum: IFRS-related topics
- Topic: ECL on bank current accounts
- Replies: 14
- Views: 36238
Re: ECL on bank current accounts
Thank you!
- 05 Oct 2022, 07:40
- Forum: IFRS-related topics
- Topic: ECL on bank current accounts
- Replies: 14
- Views: 36238
ECL on bank current accounts
Are the bank current accounts subject to ECL under IFRS 9 or they are exempt?
Thank you
Thank you
- 15 Sep 2022, 21:07
- Forum: IFRS-related topics
- Topic: Provision of financing to related companies
- Replies: 13
- Views: 5512
Re: Provision of financing to related companies
I think that the company's external borrowing rate would be appropriate OR alternatively the interest rate for bank/external loans for similar type of loans in the country of operation of the Company. Do you agree with this?
- 15 Sep 2022, 12:39
- Forum: IFRS-related topics
- Topic: Provision of financing to related companies
- Replies: 13
- Views: 5512
Re: Provision of financing to related companies
Thank you a lot Mark. Now is very clear!!
- 15 Sep 2022, 12:30
- Forum: IFRS-related topics
- Topic: Provision of financing to related companies
- Replies: 13
- Views: 5512
Re: Provision of financing to related companies
So company A should debit the "equity component" in its equity in a separate reserve and company B should recognize a credit in its equity as "contribution from shareholder". Am I right?
Thank you
Thank you
- 15 Sep 2022, 12:20
- Forum: IFRS-related topics
- Topic: Provision of financing to related companies
- Replies: 13
- Views: 5512
Re: Provision of financing to related companies
How else can you recognize it, given there is no formal direct ownership relation between the two companies?
Will you create a "dummy" investment in the books of the lender?
Thank you
Will you create a "dummy" investment in the books of the lender?
Thank you
- 15 Sep 2022, 11:51
- Forum: IFRS-related topics
- Topic: Provision of financing to related companies
- Replies: 13
- Views: 5512
Re: Provision of financing to related companies
The distribution between the companies should be recognized through profit and loss account. Right?
- 15 Sep 2022, 11:09
- Forum: IFRS-related topics
- Topic: Provision of financing to related companies
- Replies: 13
- Views: 5512
Re: Provision of financing to related companies
What happen if the shareholder of both of the companies is a physical person?
Thank you!
Thank you!
- 15 Sep 2022, 07:40
- Forum: IFRS-related topics
- Topic: Provision of financing to related companies
- Replies: 13
- Views: 5512
Provision of financing to related companies
I have a question about the provision of interest free financing between related companies, which have no equity relationship between them. It is clear by IFRS 9 that when a parent gives an interest free loan to its subsidiary or at an interest rate which is lower than the market rate, the present v...
- 16 Jul 2022, 11:32
- Forum: IFRS-related topics
- Topic: Transfer of building from PPE to investment property
- Replies: 2
- Views: 2710
Re: Transfer of building from PPE to investment property
Thank you a lot Mark!