Search found 44 matches
- 10 Feb 2024, 06:48
- Forum: IFRS-related topics
- Topic: Souscription of preference shares after closing
- Replies: 12
- Views: 650
Re: Souscription of preference shares after closing
For me, yes, you are in the presence of a derivative, a forward specifically (since it is over-the-counter, unlike futures that are traded on the stock exchange), since (1) based on the conditions it would not be a regular-way purchase transaction considering the term does not aligns with market con...
- 10 Feb 2024, 06:26
- Forum: IFRS-related topics
- Topic: Recognition of rights issues
- Replies: 1
- Views: 160
Recognition of rights issues
Hi, According to the law of corporates in Chile, my country, every time a corporate carries out a capital increase via the issuance of new shares, it must first offer them to its shareholders in proportion to the number of shares they own, giving them rights issues (of course, without consideration)...
- 10 Feb 2024, 05:47
- Forum: IFRS-related topics
- Topic: Instruments to be treated according to the equity method
- Replies: 5
- Views: 1401
Re: Instruments to be treated according to the equity method
Thanks guys. important clarifications. They have helped me clarify my doubts about it.
- 10 Feb 2024, 05:46
- Forum: IFRS-related topics
- Topic: Determination of significance influence - IAS 28
- Replies: 2
- Views: 713
Re: Determination of significance influence - IAS 28
thanks Ketan, interesting and useful observations
- 21 Jan 2024, 22:56
- Forum: IFRS-related topics
- Topic: Instruments to be treated according to the equity method
- Replies: 5
- Views: 1401
Instruments to be treated according to the equity method
Hello again IFRS community. I am writing to you on this occasion since I have a question of practical application related to the application method, specifically about what instruments (if any) should be measured according to the equity method when there is significant influence. There may be cases ...
- 21 Jan 2024, 22:21
- Forum: IFRS-related topics
- Topic: Determination of significance influence - IAS 28
- Replies: 2
- Views: 713
Determination of significance influence - IAS 28
Hello IFRS Community, I am writing on this occasion because I have a question regarding the determination of whether an investment implies significant influence or not. Specifically, if the entity so wishes, it may solely base the accounting treatment of its investment in an investee on the percenta...
- 21 Sep 2023, 05:06
- Forum: IFRS-related topics
- Topic: Portion current/noncurrent of ECL allowance
- Replies: 5
- Views: 21988
Re: Portion current/noncurrent of ECL allowance
Thanks for your help Jacob. The last comment got me thinking. I infer that you are referring to credit enhancement elements. Using, if possible, the data from the example case that I used, could you give me an example to dimension what you are telling me in a better way, please. Of course, if you ne...
- 19 Sep 2023, 18:57
- Forum: IFRS-related topics
- Topic: Portion current/noncurrent of ECL allowance
- Replies: 5
- Views: 21988
Re: Portion current/noncurrent of ECL allowance
Hello jakoblavrod, ;) Thanks for your answer. To clarify my question, it is just a fictitious case that I have invented to find an answer to my question, therefore, I ask you not to give much importance to how the cash shortfall were calculated, just for simplification reasons I assumed that they wi...
- 19 Sep 2023, 00:11
- Forum: IFRS-related topics
- Topic: Portion current/noncurrent of ECL allowance
- Replies: 5
- Views: 21988
Portion current/noncurrent of ECL allowance
Hello everyone, I have a question regarding the presentation of the ECL allowance in the Statement of financial position, classifying the assets and liabiities in current/noncurrent. Consider a constant coupon bond with semiannual coupons adquiring at June 30, 2023. The bond amortization table is as...
- 12 Sep 2023, 15:36
- Forum: IFRS-related topics
- Topic: ECL on bank current accounts
- Replies: 14
- Views: 36270
Re: ECL on bank current accounts
Thanks Jacob,
interesting and useful analysis.
interesting and useful analysis.
- 12 Sep 2023, 04:00
- Forum: IFRS-related topics
- Topic: ECL on bank current accounts
- Replies: 14
- Views: 36270
Re: ECL on bank current accounts
Hi Giannos and Community: Giannos, you mention that you reviewed technical articles that dealt with the ECL in relation to bank balances... could you (or other member of community) share the links to these, please. For my part, I share two papers, one from PWC that would indicate that ECL does not a...
- 12 Sep 2023, 03:36
- Forum: IFRS-related topics
- Topic: Interests accrued previously to investment in bonds
- Replies: 1
- Views: 15706
Interests accrued previously to investment in bonds
Hello community, I have a question for which I ask for your help, please. Let's assume that we invested in a corporate bullet bond on April 20, 20x1 that pays coupons quarterly, and that the last coupon was paid on March 31, 20x1. My question is: What happens in accounting terms with the interest th...
- 21 Jul 2023, 17:55
- Forum: IFRS-related topics
- Topic: Property held as inventory - nrv and finance costs
- Replies: 6
- Views: 1937
- 21 Jul 2023, 17:50
- Forum: IFRS-related topics
- Topic: Property held as inventory - nrv and finance costs
- Replies: 6
- Views: 1937
Re: Property held as inventory - nrv and finance costs
Sorry, I don't consider the latter. If the construction of the property has been completed and it is ready for its expected sale, the borrowing costs would no longer be capitalized, but should be recognized as financial costs in profit or loss. In this sense, they would no longer be necessary costs ...
- 21 Jul 2023, 16:39
- Forum: IFRS-related topics
- Topic: Property held as inventory - nrv and finance costs
- Replies: 6
- Views: 1937
Re: Property held as inventory - nrv and finance costs
Hi. That's how it is. Although it does not appear explicitly in IAS 2, the definition of NRV indicates that all the costs necessary to complete its production must be included, and we are talking about a qualifying asset, these will include the borrowing costs of according to IAS 23. I have a source...
- 21 Jul 2023, 05:37
- Forum: IFRS-related topics
- Topic: impact of indirect interest in equity method in individual, separated and consolidated financial statements
- Replies: 2
- Views: 1690
impact of indirect interest in equity method in individual, separated and consolidated financial statements
Hello everyone, I am reviewing IAS 28, and I have some doubts that I have not been able to solve, and I would like to share them. I will use an example to expose these. Assume that investor A purchases on January 1, 2023 80% of the voting shares of investee B and 25% of the voting shares of investee...
- 01 Jul 2023, 02:24
- Forum: IFRS-related topics
- Topic: Dismantling provisions IAS 16
- Replies: 4
- Views: 1674
Re: Dismantling provisions IAS 16
Hello Marek and Ketan. Thanks for your comments. Okay. IFRIC 1, sorry, I did not realize the error when I wrote my comment. IFRIC 1 addresses the changes in the decommissioning provision associated with the initial estimate of the costs of removing the asset and rehabilitating the place where it is ...
- 23 Jun 2023, 20:17
- Forum: IFRS-related topics
- Topic: Dismantling provisions IAS 16
- Replies: 4
- Views: 1674
Dismantling provisions IAS 16
Hello IFRS Community, After reading paragraphs 16(c) and 18 of IAS 16, I have some doubts. Thinking about an extractive company, my doubts are: 1- Are the dismantling provisions recognized in the production stage due to additional "damages" to those caused at the beginning with the install...
- 31 May 2023, 19:02
- Forum: IFRS-related topics
- Topic: First Business Model or First SPPI test?
- Replies: 16
- Views: 6197
Re: First Business Model or First SPPI test?
Thank you all for your comments. Ketan Marwah probably did not read explicitly that the order of the tests does not matter, but that "regardless of the order, the same results are reached". Is it then possible to subdivide the portfolios despite the fact that they are managed in a similar ...
- 31 May 2023, 06:30
- Forum: IFRS-related topics
- Topic: First Business Model or First SPPI test?
- Replies: 16
- Views: 6197
Re: First Business Model or First SPPI test?
Thanks JakobLavrod.
For this reason it seems strange to me that the Big Four literature sometimes mentions that the order of both tests does not matter.
For this reason it seems strange to me that the Big Four literature sometimes mentions that the order of both tests does not matter.
- 31 May 2023, 06:28
- Forum: IFRS-related topics
- Topic: First Business Model or First SPPI test?
- Replies: 16
- Views: 6197
Re: First Business Model or First SPPI test?
Hello Mark Muc. No, I mean that the order in which both tests are carried out could in certain cases impact the classification and, therefore, the initial and subsequent measurement, of the financial instruments that lie in a portfolio. Imagine that you have a portfolio of instruments that, seen in ...
- 29 May 2023, 15:40
- Forum: IFRS-related topics
- Topic: First Business Model or First SPPI test?
- Replies: 16
- Views: 6197
First Business Model or First SPPI test?
Hello everyone, I have a query regarding the relationship between the SPPI (Solely Payments of Principal and Interests) test and the identification of the Business Model, for the classification and measurement of financial assets under IFRS 9; specifically the sequence in which these "steps&quo...
- 25 May 2023, 06:35
- Forum: IFRS-related topics
- Topic: IAS 8 Accounting Policies
- Replies: 5
- Views: 1114
Re: IAS 8 Accounting Policies
Do not, as the paragraph 17 of IAS 8 (which you cited it) indicates that if you used the cost model and to change revaluation model only you should to realize a revaluation (not a retrospective application). Now, only you can go from cost model to revaluation model, but not opposite direction as Mar...
- 20 May 2023, 01:37
- Forum: IFRS-related topics
- Topic: IAS 8 Accounting Policies
- Replies: 5
- Views: 1114
Re: IAS 8 Accounting Policies
Hi, I don't fully understand the question. What I can say is that the choice of the cost model or the revaluation model is a matter of accounting policy, and that the change from one model to the other, as with any accounting policy, must be justified by the delivery of more useful information, as r...
- 15 May 2023, 22:12
- Forum: IFRS-related topics
- Topic: ias32
- Replies: 13
- Views: 2353
Re: ias32
I would not say that the fact that the dividend is derived from a financial instrument as shares, for example, is what defines the classification of "dividend payable" as a financial liability. The approval of the dividend by the shareholders' meeting (or a similar entity) in itself for me...
- 15 May 2023, 21:04
- Forum: IFRS-related topics
- Topic: ias32
- Replies: 13
- Views: 2353
Re: ias32
Hello everyone, Reading the previous posts, it seems to me (I could be wrong, of course) that the moment of recognition of the dividend is being confused with the fact of whether or not it meets the definition of a financial liability. Of course, a dividend payable cannot be recognized before it has...
- 12 May 2023, 20:42
- Forum: IFRS-related topics
- Topic: Interest on credit impaired financial asset
- Replies: 19
- Views: 3017
Re: Interest on credit impaired financial asset
Beautiful example!
- 12 May 2023, 20:15
- Forum: IFRS-related topics
- Topic: IAS 16 - Assets under construction - when to account for capital projects
- Replies: 27
- Views: 13431
Re: IAS 16 - Assets under construction - when to account for capital projects
Hello, Although it is about inventories, I leave the following paragraph that shows that for the purposes of lack of detailed guidance on the recognition of an asset, refer to IFRS 15 as a guide to determine obtaining control of the asset, and therefore, its recognition is the correct thing practica...
- 08 May 2023, 18:10
- Forum: IFRS-related topics
- Topic: Revaluation of subsidiary
- Replies: 4
- Views: 1047
Re: Revaluation of subsidiary
Hello. Are you sure which subsidiary? because it means you have control and must consolidate financial statements unless you are talking about separate financial statements. Both for consolidate or for purposes of investments measured according to the equity method (in separate financial statements)...
- 05 May 2023, 20:45
- Forum: IFRS-related topics
- Topic: Subsequent expenditures relates to biological assets
- Replies: 2
- Views: 1621
Re: Subsequent expenditures relates to biological assets
thanks for your answer. Yes, I read it. My doubt arises from the Practical Case of biological assets in module 34 of the IFRS for SMEs, which is based on the same principles of IAS 41 (I understand) and where livestock feed is illustrated (along with other subsequent expenditures) incurred and paid ...