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Marek Muc wrote: ↑09 Apr 2024, 10:48 Yeah, my post wasn't clear Say the ship's owner pays $100 of which the subsidiary receives $90.

Accounting by parent:
Revenue $100
COS $90

Accounting by subsidiary:
Revenue $90
COS [actual costs incurred]

Okay makes perfect sense now, thank you so much!!

Yeah that makes sense. Also you are saying that the subsidiary should recognise as revenue the gross amount of the service and maybe expense the commission from the parent company or am I misunderstanding this and should recognise as revenue the net amount since it should be disclosed as revenue fro...

Nope, basically the parent company has a contract with the ship's owner and since it is in spain's port, the subsidiary serves the ship based on that contract with the parent. Then the customer(ship's owner) pays the subsidiary and the parent company keeps a % as a marketing fee. What they are doing...

Basically parent company is in sweden for example and subsidiary is in spain. Both sell goods and services to ships. Subsidiary in spain can sell goods and provide services to ships that might be in spain's port based on the contracts and the prices they might have with the parent company that is lo...

Heyy, anyone who might know??

I see. Just out of curiosity, if we received a refund in the following year due to exceeding the agreed level of custom in the prior year (discount basically) and not because of error the accounting treatment would be the same? Decrease trade payables at year end?

Oh okay, thank you! I wasn't sure if i should decrease the trade payable since we haven't received the credit note as at year end.

Hey,

incorrect pricing basically from the supplier's side! They overcharged.

Anyone who might know please let me know! I was thinking if we could recognise a contract asset and credit the expense? Would that be correct?

Hey! In a more specific scenario, basically parent company charges to the subsidiary a % of each sale made by the subsidiary to a parent's client. It is like a sales commission/marketing fee if it makes sense.

What would be the best way to classify royalties and sales commissions on the pnl? As distribution expenses? COS? Decrease revenue by the same amount ( i have seen this once,not sure if it's correct). Happy to give more info if needed.

Thank you in advance!!

Yeah. Also tryna understand it from the client's sake when I decide to jump ships and move to industry.

Hey,

its the first one.

How to deal with a credit note received lets say in FY24 but relates to a purchase I made in FY23? Do I need to adjust the FY23 figures with a provision? What are the journal entries required? Basically the opposite of a sale with right of return lol

Should accrued expenses, income etc be included in the related parties note for both balances and transactions or only what has been invoiced?

Thank you!

Noted, thank you so much!

This may require a few discussions between management and auditors, but you can also make the case that the balances in the cash pool are a cash equivalent, as it meets the definition in IAS 7. If you conclude that it does not meet the definition of a cash equivalent, then these are I/C balances, a...

Thank you!! Approach 2 sounds reasonable and something I was considering as well. Im just unsure in which line to include it in financing activities or how to name it? I have seen it under borrowings once as an outflow but im not sure if its correct. Anyone else who happens to know please feel free ...

Hey thanks for your reply, appreciate it!!

We have to prepare a separate set of FS including a CFS for the sub for stat purposes in my country. Any idea how would the cash pooling would be presented in both sub's and parent's CFS(for educational purposes)?

So we are auditing a subsidiary company which transfers all of its cash to a cash pooling account at year end which is controlled by its parent company and is recharged the interest. How should this be presented on balance sheet? As an other receivable or as a loan or maybe something else?? Also how...

Thanks, appreciate you.

I know,so? I have 2 separate fslis on my balance sheet, financial assets at amortised cost which also includes some bonds and some other stuff and trade and other receivables. Where should i include the time/term deposits? Or it doesnt really matter is what you mean?

Hi!! How to present time deposits on balance sheet? As receivables or financial assets at amortised cost?? Duration is 3+ months.

Thank you!!