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Hi, Yes you can do that unless you want to show them separately as a matter of accounting policy for the reasons which I shared previously. The separate line item for interest revenue calculated using the effective interest method (that might be labelled ‘interest revenue’ or ‘interest income’ or si...

Hi, What it means is that assume a scenario where the instrument measured at FVTPL has suffered significant FV losses, entities may need to consider whether the presentation of gross ‘interest’ separately from the fair value gains and losses is still appropriate. If such a presentation is adopted, e...

Hi, What is your judgement I.e. whether you are invested in companies growth or you have made the investments for the sole purpose of capital appreciation, investment income (such as dividends, interest or rental income), or both. While via the contracted terms, it seems that you have secured your r...

Hi, Paragraph 85 of IAS 1 permits an entity to present additional line items in the income statement where such a presentation is relevant to an understanding of the entity’s financial performance. This is consistent with paragraphs B5 and BC34 of IFRS 7 which envisage that an entity can present int...

Giannos wrote: ↑09 May 2024, 11:18 reclassify the amount of the right of use and of the carrying amount of its accumulated depreciation from Right of use assets to PPE?

Hi, the former (what I have quoted from your question).

Hi, Both items should be recorded on the PnL in the specific case you mentioned unless dividend distribution represents a recovery of part of the cost of the investment, or accumulated profits. Refer the below: Interest: https://ifrscommunity.com/knowledge-base/ifrs-9-measurement-of-financial-instru...

Hi, The answer to your question might get a bit lengthy but hoping that a careful reading of the response might assist you. Most of the E-Commerce entities around the globe work on a “marketplace” model, which means they provide a technology powered virtual shopping mall where sellers and buyers can...

In certain exceptional situations if a company is able to clearly demonstrate that the employee costs of the project manager and CFO are directly attributable costs for bringing the PPE/project to the location and condition necessary for it to be capable of operating in the manner intended by the m...

Hi, Just adding my two cents worth. Share based Payment Arrangement is defined as an agreement between the entity (or another group entity or any shareholder of any group entity) and another party (including an employee) that entitles the other party to receive (a) cash or other assets of the entity...

Hi, Paragraph 99 of IAS 1 allows a choice in the presentation of an analysis of expenses depending on which method (ie ‘function of expense’ method or a ‘nature of expense’ method) provides information that is reliable and more relevant. IAS 1 allows entities to use judgement on the level of detail ...

Hi Marek,

Agree with you.

Hi, I did not attribute the liability nature owing to the perpetual nature of the instrument. I clarified that point upfront in the discussion with the question about interest bearing nature of the instrument. I attributed the liability nature due to an unavoidable contractual obligation for an amou...

Hi, Let me elaborate: The preferred approach to classification is that when classifying a financial instrument, an entity would firstly identify an obligation that has a feature of a non-derivative financial liability. The obligation to pay a fixed amount at liquidation (perpetual debt) would be cla...

Hey Leo, No worries. Any amount of IFRS sparring is always welcome and appreciated. A request though that please don’t paste full para’s in your replies as that makes the post lengthy. You can trust on my ability to access IFRS para’s basis what you quote :) . Let’s discuss it further now: 1) Curren...

So isn’t this the same discussion then as we had the other day. It could be presented as: 1) Either equity (Non-interest bearing perpetual debt) + liability (conversion feature derivative) OR 2) Liability as the entity is not obliged to deliver a fixed number of its own equity instruments for fixed ...

How about characteristics of amount when converted?

Hi, The operator accounts for construction or upgrade services in accordance with IFRS 15. Refer the following: https://ifrscommunity.com/knowledge-base/ifrs-15-contract-costs/ If the operator provides construction or upgrade services the consideration received or receivable by the operator is recog...

Hi, Coincidentally happened to look at this thread. I have a different opinion thus thought of activating the post again as it quite a frequently asked question: IAS 19 scope says it includes items where an obligation arises and where there is no realistic alternative but to pay the benefit. Provisi...

Hi,

Is the amount fixed in USD, Euros or neither of two?
Is the bond interest bearing?

Hi, As I advised on the previous post that the intermediate lessor accounts for the head lease and the sub-lease as two different contracts, applying both the lessee and the lessor accounting requirements. Apply variable lease payment requirement stated under IFRS 16 after going through the contract...

Hi, The intermediate lessor accounts for the head lease and the sub-lease as two different contracts, applying both the lessee and the lessor accounting requirements. I would simply reinstate ROU balance on the date as it would have had the asset not been subleased. NIL would on the other hand would...

Hi, What do you find strange here? On one hand you have a debt of USD 1.6m and on the other hand you have a receivable of USD 0.5m so you are bound to have a net interest expense on the PnL (don't read it as that those two items could be netted). It is a very common scenario so in my view nothing un...

Hi Asees,

Yes, exchange differences that arise when translating an investee’s financial statements into the investor’s presentation currency are recognised in OCI (IAS 21.44).

Hi,

How did you form that understanding from my response? There is no accumulated impairment concept. Please spend some time reading the linked page and revert back if you have doubts still:

https://ifrscommunity.com/knowledge-bas ... units-cgu/

Hi JBFH, Try referring this to get better understanding: https://ifrscommunity.com/knowledge-base/cash-generating-units-cgu/#sequence-of-impairment-tests-and-allocation-of-losses Let me still try and help you with your questions: Q1: You must first and foremost ensure that CGUs with impairment indic...

Hi JRSB, As I read the post it clearly said that "That company used to charge the operational/admin expenses like Salary of CEO, CFO, project manager,etc. to P/L" so basis that I don't think there is historic pile up that requires some sort of clean up. Secondly, restating historic stateme...

Hi, We can capitalize any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management (IAS 16.16(b)). In the paragraph 17 of IAS 16 there are the examples of what expenses are considered to be direct...

Hi, When I rethink about this topic then I find merit in the liability classification too. So the right answer seems to be that it could be classified as either of two: Liability or a hybrid contract (Equity Host + Liability derivative). Paragraph 16(b)(i) of IAS 32 states that, in order to be class...

Hi Kevin, Often, lease contracts include extension, termination or purchase options. Such options would not qualify as embedded derivatives where their only underlying is the price of renting or purchasing the leased asset. Such an underlying is a non-financial variable which is specific to a party ...

Hi Leo,

Thanks. I would not agree with that “diversity” though

I would stick to classifying it as a hybrid instrument (equity + derivative liability) and not just liability alone.