Search found 53 matches

by SaadOlath
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...
by SaadOlath
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...
by SaadOlath
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.
by SaadOlath
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...
by SaadOlath
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...
by SaadOlath
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?
by SaadOlath
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?
by SaadOlath
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?
by SaadOlath
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.
by SaadOlath
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
by SaadOlath
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...
by SaadOlath
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...
by SaadOlath
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...
by SaadOlath
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 ...
by SaadOlath
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...
by SaadOlath
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.
by SaadOlath
15 Nov 2020, 14:18
Forum: IFRS-related topics
Topic: Income vs Revenue
Replies: 2
Views: 970

Re: Income vs Revenue

Thank you
by SaadOlath
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.
by SaadOlath
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.
by SaadOlath
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.
by SaadOlath
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?
by SaadOlath
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...
by SaadOlath
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...
by SaadOlath
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?
by SaadOlath
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?
by SaadOlath
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...
by SaadOlath
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?
by SaadOlath
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 ...
by SaadOlath
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...
by SaadOlath
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.