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Mr. Y and Mr. X both are independence. These are family members only but not close family members.

In my view, Entity A & B are not related parties.[Paragraph 9(b)(vi)–(a)(iii)]

Because Mr. X has only significant influence (not control) over A. So, A & B are not related.

Hi, Mr. X is a director of Company A (Key management personnel). Mr. Y is a director of Company B (Key management personnel) and hold the 53% shareholding in B. Mr. Y is a son of Mr. X. Mr. Y is independent from Mr. X. Mr. X is also a key management personnel in Company B. Company A and B are relate...

An contract has been signed between two parties. The terms of agreement are drafted in view to avoid taxation.

Hi, A Company has an agreement with Company B as: Company B will purchase all shareholding of Company A in consideration of $ 100 : 1. Immediately payment of $50; and 2. remaining amount ($50) will be settled as rendering of service by company A to B in exchange of transfer of share of B in favour o...

In continuity of question " Classification of non-current liabilities as current", and base on below para 72 of IAS 1, Is accounting treatment of the entity is seem to be correct? Because, as at reporting date, the entity has full intention to pay off its all loan obligation (entity write ...

As per Para BC 141, IFRS 16 requires a lessee to initially recognise and measure right-of-use assets and lease liabilities at the commencement date (ie the date on which the lessor makes the underlying asset available for use by the lessee). In our case, assets (vehicle) not delivered to the entity ...

Entity 'A' lease a vehicle from a bank B. Reporting date of A is 30 September 2023. Lease commencement date is 01 September 2023. Rental shall be paid monthly. Entity A has paid one rental till reporting date but underlying asset (vehicle) not yet delivered to the A... As at reporting date, Are leas...

Sir, i am still awaiting your valuable opinion.

Certain companies engaged in manufacture and sale of sugar and allied products and sugarcane is a raw material. Financial institution not provide loan to individual growers and required guarantee. Sugar mills given guarantee to the financial institutions for payments of loan amount. Process: 1. Bank...

Hi,

A sugar industry recognized trade receivable from growers against sale of agriculture store items which will be settled against purchase of sugarcane. A non-financial assets. Cash and cash equivalents will not received.

What we off sett this non-financial assets with financial liability ?

Thanks for good gaudiness.

Transaction costs are different from transport costs, which are the costs that would be incurred to transport the asset from its current location to its principal (or most advantageous) market. Unlike transaction costs, which arise from a transaction and do not change the characteristics of the asse...

"Disposal of an asset" in my view, it mean this indicate that disposal does not mean a sale transaction. If a company grow agriculture produce for its own consumption, it has to harvest in each and every condition for its effective use (harvest and then transfer to location for its usage)....

Hi, A sugar industry also managed the corporate farms for cultivation of sugarcane for its own consumption. 75% portion of its own cultivated sugarcane used in manufacturing of sugar. Sugarcane is a biological produce under IAS 41 and should be measured at FV less costs to sell and recognized FV gai...

Thanks.

Hi ! Long term loan having term 5 year. In 3rd year end, the Company has decided to repay all loan obligation within 12 month after reporting date. Reporting date 30 September 2023. As at 30 September 2023, the Company has classified all non-current maturity of loan as current liabilities. Subsequen...

Thanks.

You used the original EIR 7 %, why ?

what will be carrying amount of original loan ?
Remaining cash flows discounted on original EIR ?

sorry for error in description. I am re-writing the description as: On 04 July 2022, ABC Limited entered into a restructuring plan to modify the original terms of a loan with the bank. According to the new plan, ABC Limited will make a 33 equal quarterly payment of $. 5,095,345 till 13 Dec 2027, ins...

Hi, On 04 July 2022, ABC entered into a restructuring plan to modify the original terms of a loan with the bank. According to the plan, ABC will make a 30 equal payment of Rs. 920 million till 13 July 2027, instead of originally scheduled payments. The market interest rate at the time of restructuri...

Hi, Entity A has entered into lease agreement with entity B for period of 12 month. On expiry of lease period, further extend for next 12 month. No notice period is mentioned in the agreement. Is it is consider as short term lease OR modification of lease ? If it consider as modification of lease, w...

Entity A is Government own entity. Entity A is engaged in its principal activities like to provide loans to small businessmen / entrepreneur for income generation, goods on credits etc. Entity B is another entity which also provide microfinancing. Entity B is not Government own entity. Government ma...

No. Because PPE are own assets and useful life is very important.

Question is that, why we not we classified PPE as current in final year ? answer is that we have no any intention to sell him (we have control and right on it)

Sir, I have some questions and in my view ROU should be classified as current assets to the extent of it will consume within next 12 month. Grounds facts: In simple scenario: 1. We recognized lease liabilities equivalent to ROU under IFRS 16. 2. Lease liabilities should be classified (current & ...

Hi,

A company recognized ROU and its lease liabilities. Lease term is 5 year.

Question is that:

At end of 4 year, ROU will be also classified as current assets like lease liabilities ?

In my view, IFRS 16, do not provide any guideline for classification of ROU as current and non current.

Thanks for your prompt reply. Sir, I extract the statement form the document as : "Loan will be repay on dissolution (winding up) of the entity A". It is interest free loan. I think , Its mean it has indefinite loan term / repayment is conditional and subject to winding up of the entity A ...

Hi, Government of Pakistan (GoP) has provided long term loan to another Government own entity 'A'. Repayment of loan agreed as till dissolution of A. The GoP has right (as per rules) to Winding up the A at any time. Question: 1. What will be the loan term as per IFRS 9 for subsequent measurement of ...

Hi, I have a question. Entity A has an agreement with Entity B, any payment of provident fund to workers will be pass through item e.g. recoverable from Entity B. What will its accounting treatment? 1. Expense debit / payable credit when recover from entity B, Payable debit / other income credit OR ...

Its means, it will be classified as operating lease?

Hi, Question is that: Entity A lease 250 Acre land from Entity B for period of 5 years and recognized lease liability and ROU as per IFRS 16. On 3rd year of lease, entity A sub lease 200 acre to entity C for period of one year. We have recognized ROU for 5 year on 250 acre of land. Either, we have t...