Search found 53 matches
- 24 Aug 2023, 09:50
- Forum: IFRS-related topics
- Topic: Change in Functional Currency
- Replies: 1
- Views: 6532
Change in Functional Currency
Hi, I work in the finance department of a telecommunications company. Our financial year runs from 1st January to 31st December. As of 1st July 2023, the company transitioned its functional currency from EUR to USD. Here's what I did: As of 1st July 2023, I converted all assets, liabilities, and equ...
- 24 Aug 2023, 05:28
- Forum: IFRS-related topics
- Topic: Long term contract
- Replies: 3
- Views: 9184
Long term contract
I'm part of a telecommunications firm with long-term bandwidth agreements that run from 2019 to 2039. Suppose my company secured a deal worth USD 50 million for 20 years. Would it be accurate to make an initial accounting entry by debiting 'Contract Assets' with USD 50 million and crediting 'Deferre...
- 09 Nov 2022, 18:48
- Forum: IFRS-related topics
- Topic: Deemed disposal of Subsidiary
- Replies: 1
- Views: 867
Deemed disposal of Subsidiary
I have a Subsidiary which is under liquidation.
I know that I need to derecognise the assets and liabilities of the Subsidiary at Group Level.
DR Liability
CR Assets
DR/CR difference???
Where should I adjust the remaining amount.
I know that I need to derecognise the assets and liabilities of the Subsidiary at Group Level.
DR Liability
CR Assets
DR/CR difference???
Where should I adjust the remaining amount.
- 31 Oct 2022, 08:07
- Forum: IFRS-related topics
- Topic: Disposal of Subsidiary
- Replies: 1
- Views: 8997
Disposal of Subsidiary
Hello, Suppose that a Parent has disposed its Subsidiary on the last day of the financial year, At Parent Level, we will DR Bank (Proceed received) CR Carrying amount of the Subsidiary CR Gain on disposal At Group level, I understand that we should recognize a Group gain/(loss). Group gain = Proceed...
- 31 Oct 2022, 07:11
- Forum: IFRS-related topics
- Topic: Winding up of Subsidary
- Replies: 2
- Views: 9074
Winding up of Subsidary
Hello, If A Subsidiary has wound up during the year, when calculating gain/loss [Proceed - Carrying amount] on deemed disposal of the Subsidiary at the Parent Level, Can we say that proceeds = net assets of the Subsidiary? In the book of the Parent Investment in Subsidiary $100,000 In the book of th...
- 26 Sep 2021, 23:22
- Forum: IFRS-related topics
- Topic: Translation difference on consolidation
- Replies: 1
- Views: 979
Translation difference on consolidation
Hi,
Should we calculate NCI on translation differences arising on foreign subsidiaries?
Should we calculate NCI on translation differences arising on foreign subsidiaries?
- 30 Apr 2021, 22:06
- Forum: IFRS-related topics
- Topic: Equalization
- Replies: 1
- Views: 931
Equalization
How to account equalisation credit / deficits in accordance with IFRS?
- 30 Apr 2021, 22:05
- Forum: IFRS-related topics
- Topic: Futures
- Replies: 1
- Views: 909
Futures
If a Fund trades in futures and have a margin accounts.
Should we recognise futures as derivatives financial assets in the BS?
Should we recognise futures as derivatives financial assets in the BS?
- 25 Apr 2021, 22:16
- Forum: IFRS-related topics
- Topic: Disposal of Subsidiary
- Replies: 3
- Views: 1328
Disposal of Subsidiary
When disposing a Subsidiary, should we remove all accumulated profits of that Subsidiary in the consolidated statement of changes in equity.
As the consolidated opening balance of the SOCE includes the accumulated profits of that Subsidiary.
As the consolidated opening balance of the SOCE includes the accumulated profits of that Subsidiary.
- 27 Nov 2020, 04:02
- Forum: IFRS-related topics
- Topic: Disposal of Subsidiary
- Replies: 4
- Views: 1836
Re: Disposal of Subsidiary
Subsidiary set up from scratch
Sopl - st of profit or loss
Sofp - st of Financial position
Sopl - st of profit or loss
Sofp - st of Financial position
- 26 Nov 2020, 22:18
- Forum: IFRS-related topics
- Topic: Disposal of Subsidiary
- Replies: 4
- Views: 1836
Disposal of Subsidiary
Please consider the below scenario: Parent A owned 100% equity share in its Subsidiary. In the book of the Parent, investment in Subsidiary was USD 100,000. Parent has disposed its Subsidiary for USD 150,000. Therefore, a gain of USD 50,000 has been recognized in P&L of the Parent. Share Capital...
- 22 Nov 2020, 02:51
- Forum: IFRS-related topics
- Topic: Free Subsidiary from controlling shareholder
- Replies: 3
- Views: 1284
Free Subsidiary from controlling shareholder
Usually investment in subsidiary is the purchase consideration, paid to acquire a Subsidiary. What if, the Subsidiary was gifted by the Ultimate Shareholder? At Consolidation level, Investment in Subsidiary is usually offset against Share Capital of the Subsidiary. Therefore, I believe that investme...
- 22 Nov 2020, 02:21
- Forum: IFRS-related topics
- Topic: Acquisition Method Vs Book Value Method
- Replies: 5
- Views: 1484
Re: Acquisition Method Vs Book Value Method
In the event that pooling of interest is being used, no goodwill/gain on bargain will be recognised? If Purchase consideration > Book Value of investee Company, a negative merger reserve will be recognised and If Purchase consideration < Book Value of investee Company, a positive merger reserve will...
- 21 Nov 2020, 20:53
- Forum: IFRS-related topics
- Topic: Acquisition Method Vs Book Value Method
- Replies: 5
- Views: 1484
Acquisition Method Vs Book Value Method
Please consider the below scenario: Mr A holds 100% equity shares in Company X. Mr B holds 100% equity shares in Company Y and Company Z respectively. Mr A and Mr B are two brothers. Mr B gifted Company Z to Company X. At consolidation level, which method should Company X use? Acquisition method or ...
- 21 Nov 2020, 12:28
- Forum: IFRS-related topics
- Topic: Interest Free Loan
- Replies: 3
- Views: 1027
Interest Free Loan
A Parent has made an interest free loan to its Subsidiary. The loan will be repaid fully in 10 years (in only one installment). The principal activity of the Parent is Investing Holding and to manage the activity of its Subsidiary. The Subsidiary is involved in trading activities. Should the loan be...
- 15 Nov 2020, 15:28
- Forum: IFRS-related topics
- Topic: Revenue IFRS 15
- Replies: 6
- Views: 1462
Re: Revenue IFRS 15
The individual owns all the 3 entities.
- 15 Nov 2020, 14:18
- Forum: IFRS-related topics
- Topic: Income vs Revenue
- Replies: 2
- Views: 970
Re: Income vs Revenue
Thank you
- 15 Nov 2020, 14:17
- Forum: IFRS-related topics
- Topic: Revenue IFRS 15
- Replies: 6
- Views: 1462
Re: Revenue IFRS 15
X is a Subsidiary as well.
The Ultimate Shareholder is an individual.
The Ultimate Shareholder is an individual.
- 15 Nov 2020, 14:16
- Forum: IFRS-related topics
- Topic: Net assets attributable to redeemable preference shareholders
- Replies: 7
- Views: 2229
Re: Net assets attributable to redeemable preference shareholders
Preference shares are redeemed at their issued price.
Holders are entitled to a fixed dividend every year, provided that the Company made sufficient profits.
Holders are entitled to a fixed dividend every year, provided that the Company made sufficient profits.
- 15 Nov 2020, 12:09
- Forum: IFRS-related topics
- Topic: Net assets attributable to redeemable preference shareholders
- Replies: 7
- Views: 2229
Re: Net assets attributable to redeemable preference shareholders
- No right to receive notice of any shareholder’s meeting and no voting rights
- Be redeemable at the option of the shareholder or the Fund.
- Be redeemable at the option of the shareholder or the Fund.
- 15 Nov 2020, 11:56
- Forum: IFRS-related topics
- Topic: Net assets attributable to redeemable preference shareholders
- Replies: 7
- Views: 2229
Re: Net assets attributable to redeemable preference shareholders
The issuer's perspective.
For the holder's perspective, it's measured at FVTPL? Am I right?
For the holder's perspective, it's measured at FVTPL? Am I right?
- 15 Nov 2020, 09:01
- Forum: IFRS-related topics
- Topic: Revenue IFRS 15
- Replies: 6
- Views: 1462
Revenue IFRS 15
Company X, Y and Z are within the same Group. The have the same Ultimate Shareholder. Company X has an investment management agreement with Company Y. At the end of the year, performance obligation was satisfied. However, the ultimate shareholder has instructed Company Y to pay the investment manage...
- 15 Nov 2020, 08:42
- Forum: IFRS-related topics
- Topic: Income vs Revenue
- Replies: 2
- Views: 970
Income vs Revenue
Is there any difference between income and revenue? Lets say the principal activity of an entity is Investment Manager. The IM is entitled to management fee, performance fee and advisory fee. Additionally, the IM has received interest income from its bank accounts. On the face on the SOPL, can I inc...
- 15 Nov 2020, 08:36
- Forum: IFRS-related topics
- Topic: Net assets attributable to redeemable preference shareholders
- Replies: 7
- Views: 2229
Net assets attributable to redeemable preference shareholders
How should Net assets attributable to redeemable preference shareholders be measured under IFRS 9?
- 12 Nov 2020, 04:53
- Forum: IFRS-related topics
- Topic: Investment in debentures
- Replies: 5
- Views: 1602
Re: Investment in debentures
Scnerario 1:
Redeemable preference shares (at option of the holders)
Scenario 2:
Irredeemable preference shares
Fixed dividend per annum
In the case, we're gonna to measure these investments at FVPL, which valuation method should we use?
Redeemable preference shares (at option of the holders)
Scenario 2:
Irredeemable preference shares
Fixed dividend per annum
In the case, we're gonna to measure these investments at FVPL, which valuation method should we use?
- 11 Nov 2020, 19:52
- Forum: IFRS-related topics
- Topic: Investment in debentures
- Replies: 5
- Views: 1602
Re: Investment in debentures
As per the agreement, it will be compulsorily converted to preference shares after x years. I would like to know whether, these investments should be measured at FVTPL or amortised cost. Example: Company X has purchased compulsory convertible debentures amounting to USD 100,000 and is not entitled t...
- 11 Nov 2020, 17:43
- Forum: IFRS-related topics
- Topic: Investment in debentures
- Replies: 5
- Views: 1602
Investment in debentures
How should investment in compulsory convertible debentures (interest free) be accounted as per IFRSs?
- 28 Aug 2020, 04:37
- Forum: IFRS-related topics
- Topic: Investment in Subsidiaries at no consideration
- Replies: 12
- Views: 3428
Re: Investment in Subsidiaries at no consideration
Yes, it was a direct subsidiary of the Ultimate Parent. The Auditor (Big 4) of Parent X said that, it should not be accounted as Investment in Subsidiaries, since no consideration was transferred. In my opinion, it should be accounted as a capital contribution & investment in sub. My only issue ...
- 27 Aug 2020, 20:42
- Forum: IFRS-related topics
- Topic: Investment in Subsidiaries at no consideration
- Replies: 12
- Views: 3428
Investment in Subsidiaries at no consideration
Company X has acquired a Subsidiary within the same Group at No consideration? The Share Capital of the Subsidiary was USD 15,000 on the date of acquisition. I have made the following entries at Company X level: Dr Investment in subsidiary $40,000 CR Capital Contributions $40,000 Please advise if it...
- 31 Jul 2020, 18:33
- Forum: IFRS-related topics
- Topic: Impairment of subsidiary
- Replies: 7
- Views: 6013
Re: Impairment of subsidiary
Yes, it's a business combination at group level.