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Can i request expert views on below please ?

Prior to transition to IFRS 16, rent payments are accounted under R&D for IFRS reporting and there was no Depreciation. Upon transition, Depreciation of ROU is classified under R&D Category as the functional presentation is followed for IFRS similar to depreciation on any other PPE/ Intangib...

An entity has obtained a building on lease. This building will be used for performing certain R&D activities. Para 49 of IFRS 16 states, Interest on Lease liability shall be accounted under finance cost. However since the entity is using the building for R&D activities, is it appropriate to ...

The company did not specifically assess on the held back amounts specifically as contingent consideration ( as it is not material or not significant). USD 1 mn is recorded along with regular consideration as payable.

Entity A had acquired business from Entity B for a total consideration of USD 10 million during Financial year ended 31 March 2020.Entity A accounted assets and liabilities acquired at Fair values and paid total consideration of USD 9 million. USD 1 million is kept on hold for certain reconciliation...

This guidance helps, but can you share if there is any explicit guidance from Holder perspective ?

Interest rate was kept at minimum as the intention was to obtain financing initially by way of CCD without diluting the current owner ship % till the conversion period.

An entity A has invested in 0.01% convertible debentures in entity C. These debentures are to be converted into equity shares if entity C at 1:1 ratio at the end of 10th year. Considering the above scenario, there is guidance available from Issuer point of view ( i.e., entity C). How should entity A...

Hi Wanted to take views pertaining to accounting treatment for investments made in a entity by way of SAFE agreements. Below are the few details for better understanding: a. Entity A is incorporated on April 01,2022 and is a start up entity with 4 share holders of 25% share each B In FY 2023, Entity...

Hi Ketan, Thanks for sharing the guidance. In a case where holding company which is granting financial support to subsidiary does not want to treat it as loan or receivable and would like to treat financial support is for meeting the funding requirements by Subsidiary for projects of Parent company,...

Hi A parent company has given financial support to its subsidiary company to reimburse for all costs which will be incurred by subsidiary in coming financial year. Subsidiary would incur costs on the projects which will be helpful to the business of its Parent company Is there any accounting implica...

An entity has 2 segments, Segment A and Segment B. Segment B has its own customers and also renders captive transfer requirements to Segment A. Captive transfers are made from Plant X of Segment B. Management reviews Gross margins of respective segments to assess the performance. During the period i...

Is there any different guidance for conducting impairment evaluation for startup business/ new business segments ? Generally new businesses initiatives taken by an entity requires investment in various assets, how ever it takes time to grab the market and increase its share. In these situations, whi...

Para 71 of IAS 38 refers to past expenses not to be recognised as an asset. Does this paragraph restrict capitalization of expenses relating to intangible asset which were recognised as an expense ? i.e., if an entity has charged off Intangible asset without knowing that it was as asset , can the en...

The objective for which the company is building the assets meet the service objectives of charitable organisation.. as a matter of encouragement, charitable organization wants to provide amounts to Company A.
Company A will do the construction of the assets and it will be owned by Company A

Company A is constructing an Asset ( Building and equipment). Entity X is a charitable organization ( not government entity )interested in activity of company A and intends to provide funding for construction to Company A. Total Cost expected to incurr- USD 20 mn Amounts to be received as funding fr...

Lease term as per IFRS 16: Although general exemption applies for leases with term of less than 12 months, as per IFRS 16 lessee also needs to consider extended periods under the contract. Lease contract may give the lessee with an option to extend or terminate the existing lease. Due to the presenc...

Thanks for the clarification.. Extending this example further, In case of accounting in books of buyer, functional currency of buyer is USD and he had procured inventory in USD. In order to protect his exposure of his purchases due to variable component in pricing linked to INR VS USD rate, if Buyer...

A company is invoicing its sales to its subsidiary with price linked to Forex rate. Eg: Initial invoice value is USD 100 on 30 Jan 2023 ( considering INR 1= USD 100), if by due date i.e., on 30 March 2023 if exchange rate increases by 1%, invoice rate would be adjusted accordingly ( as per terms of ...

Guidance seems to be applicable for investment entity... but my clarification is how should the stake be accounted by Investor A. i.e., whether at FVTPL or FVTOCI !

X LLP is venture capital entity and it has accumulated funds from investor A and Investor B. X LLp would utilise the funds received from Investors A a B for investing in Startup entities. After 10 years, X llp would redeem the capital from Investors A along with returns ( obtained by disposing the s...

Where can i get example of Net investment hedge using Forward contracts illustration under IFRS ?

Hi Marek, I agree with your post which is inline with IAS 2, but is there any technical guideline/ clarification to bifurcate such expenses ? or whether it is completely based on judgement of management. For example: A plant finance head can be treated as providing service indirectly to Plant, which...

How are plant related Admin costs treated under IAS 2, ( eg: Plant HR team cost and accounts team cost). whether these can be allowed to as overheads for absorption in inventory Valuation as per IAS 2? any reference to industry practice ?