Search found 77 matches
- 30 Apr 2023, 08:51
- Forum: IFRS-related topics
- Topic: Project Revenue under IFRS 15
- Replies: 2
- Views: 1541
Re: Project Revenue under IFRS 15
I am questioning whether IFRS should even be applied here. I don’t think the receipt of funds / grants qualify as revenue.
- 30 Apr 2023, 08:44
- Forum: IFRS-related topics
- Topic: Hedge Accounting
- Replies: 30
- Views: 15454
Re: Hedge Accounting
Yes that will be a cash flow hedge
- 30 Apr 2023, 08:38
- Forum: IFRS-related topics
- Topic: Intercompany Asset Transfer from PVT to partnership by same ownership
- Replies: 4
- Views: 1369
Re: Intercompany Asset Transfer from PVT to partnership by same ownership
As far as I know, IFRS is not applicable on partnerships as a partnership by itself doesn’t constitute a separate legal entity / person. However you can always structure it as a sale of asset to the partnership and for accounting purposes assume the consideration to the cost of the building but this...
- 18 Jan 2022, 05:49
- Forum: IFRS-related topics
- Topic: Discounting an obligation to a Group company
- Replies: 4
- Views: 1513
Re: Discounting an obligation to a Group company
There are transfer pricing regulations but because it is within the same jurisdiction and there is no CIT (UAE), the transfer pricing regulations only have consequences on cross border transactions.
- 17 Jan 2022, 06:38
- Forum: IFRS-related topics
- Topic: Discounting an obligation to a Group company
- Replies: 4
- Views: 1513
Discounting an obligation to a Group company
What are the circumstances in which you can get away with not discounting a long term obligation (to a related party)? Would an argument that the working capital cycle of a real estate developer spans over multiple accounting periods (24 to 36 months) be sufficient for such an argument? A Group comp...
- 14 Oct 2021, 12:26
- Forum: IFRS-related topics
- Topic: Recognizing non controlling interest based on profit sharing agreement
- Replies: 11
- Views: 3150
Re: Recognizing non controlling interest based on profit sharing agreement
Well if the agreement is worded as though there is no obligation to deliver cash but it would be on discretion of PropCo to declare dividend. Would that change your view?
- 12 Oct 2021, 08:51
- Forum: IFRS-related topics
- Topic: Recognizing non controlling interest based on profit sharing agreement
- Replies: 11
- Views: 3150
Re: Recognizing non controlling interest based on profit sharing agreement
This is the whole point.
The transaction is in essence a borrowing transaction but the company wants to achieve equity accounting with it as the debt ratios are stressed right now. Hence it is being structured like this.
The transaction is in essence a borrowing transaction but the company wants to achieve equity accounting with it as the debt ratios are stressed right now. Hence it is being structured like this.
- 11 Oct 2021, 15:42
- Forum: IFRS-related topics
- Topic: Recognizing non controlling interest based on profit sharing agreement
- Replies: 11
- Views: 3150
- 11 Oct 2021, 14:35
- Forum: IFRS-related topics
- Topic: Recognizing non controlling interest based on profit sharing agreement
- Replies: 11
- Views: 3150
Re: Recognizing non controlling interest based on profit sharing agreement
Well the Group still controls PropCo so I am not sure we can establish joint control here.
- 11 Oct 2021, 13:53
- Forum: IFRS-related topics
- Topic: Recognizing non controlling interest based on profit sharing agreement
- Replies: 11
- Views: 3150
Recognizing non controlling interest based on profit sharing agreement
Hello all As the title suggests is it possible to recognize non controlling interest based on profit sharing agreement? Let me give you brief background to the arrangement: A newly formed entity (“PropCo”), will be formed Group A into which Group A shall contribute all of its portfolio of properties...
- 02 Feb 2021, 07:28
- Forum: IFRS-related topics
- Topic: ias 24
- Replies: 8
- Views: 2533
Re: ias 24
You still have some flexibility with regards to what constitutes as key management as that is a matter of judgement.
- 02 Feb 2021, 07:15
- Forum: IFRS-related topics
- Topic: IAS 21 - selection of exchange rates source in practice
- Replies: 7
- Views: 2524
Re: IAS 21 - selection of exchange rates source in practice
It is not a matter of compliance with IAS 21 per say as the standard doesn't say which rate to use but more a question on reasonableness of management's judgement and estimate with regards to exchange rate. This can become very tricky when it comes to some of the economies where there is a wide disc...
- 26 Jan 2021, 14:25
- Forum: IFRS-related topics
- Topic: Equity under FVTOCI
- Replies: 4
- Views: 1944
Re: Equity under FVTOCI
You live by the sword and you die by the sword if you decided to avoid loss in P&L back in the day now you have to be consistent with the treatment.
- 26 Jan 2021, 12:35
- Forum: IFRS-related topics
- Topic: Common control transaction
- Replies: 8
- Views: 2996
Re: Common control transaction
My bad, forgot to draw an arrow there. Yes, the ultimate shareholder owns both A and C.
- 26 Jan 2021, 12:34
- Forum: IFRS-related topics
- Topic: IFRS 16 Assignment of Lease
- Replies: 9
- Views: 4369
Re: IFRS 16 Assignment of Lease
Is the "assignment of lease" agreement between you and the new tenant or land lord and the new tenant?
- 26 Jan 2021, 12:26
- Forum: IFRS-related topics
- Topic: Common control transaction
- Replies: 8
- Views: 2996
Re: Common control transaction
Thanks Marek, good to be back. Yes we are talking about the consolidated FS of A. I know this is a very simple case of deconsolidation but a board member had me confused by saying that because we had already impaired the receivable balance in the stand alone financial statements of A by 100, that ch...
- 26 Jan 2021, 08:17
- Forum: IFRS-related topics
- Topic: Common control transaction
- Replies: 8
- Views: 2996
Common control transaction
Been a while since I have been around and have a question on a common control transaction that is happening and I need some help regarding this. The transaction in its simplest form looks like this: Deconsolidation.JPG Background information Entity A has been paying salary of some entity B employees...
- 29 Dec 2020, 10:59
- Forum: IFRS-related topics
- Topic: Interest-free loans or loans at below-market interest rate
- Replies: 27
- Views: 21097
Re: Interest-free loans or loans at below-market interest rate
Right, things can get blurred under common control. I guess you have two choices in such a case: 1. Treat such a loan as repayable on demand and therefore proceeds = fair value or 2. Consider the loan to be in substance equity contribution in full What are your observations in practice? Mostly no. ...
- 21 Oct 2020, 12:49
- Forum: IFRS-related topics
- Topic: Contribution to joint operation
- Replies: 20
- Views: 4600
Re: Contribution to joint operation
On second thought my idea doesn't make sense. You should continue with the approach you are currently using.
- 21 Oct 2020, 12:43
- Forum: IFRS-related topics
- Topic: Inventories at cost and NRV
- Replies: 3
- Views: 1282
Re: Inventories at cost and NRV
Well the original cost was 100 so you should write it back up to 100, provided the NRV is at 100 or above 100.
- 21 Oct 2020, 12:41
- Forum: IFRS-related topics
- Topic: offsetting receivable and lease liability
- Replies: 7
- Views: 2073
Re: offsetting receivable and lease liability
What @JRSB said, it depends on whether there is a legal enforceable right to settle. Usually any receivables / prepayments on date of adoption of IFRS 16 form part of right-of-use asset as opposed to being netted off against lease liability.
- 21 Oct 2020, 12:38
- Forum: IFRS-related topics
- Topic: Contribution to joint operation
- Replies: 20
- Views: 4600
Re: Contribution to joint operation
I personally like to keep things simple. Why not treat it simply as an advance and treat the receipt of excess as settlement of this advance.
- 21 Oct 2020, 08:43
- Forum: IFRS-related topics
- Topic: Selling 50% of a level of consolidation
- Replies: 6
- Views: 1796
Re: Selling 50% of a level of consolidation
When you classify a line of business or subsidiary as held for sale you classify all its assets (current and non current) in a separate line after current assets as assets held for sale and the liabilities are classified as held for sale in a separate line after current liabilities. You could either...
- 30 Sep 2020, 08:34
- Forum: IFRS-related topics
- Topic: Derivative transaction double entries
- Replies: 12
- Views: 2814
Re: Derivative transaction double entries
You do not have to recognize the asset and liabilities with respect to the notional amount of the derivative. What you carry on your balance sheet is the fair value of the derivative (which is net of receive and pay legs). In absence of any hedge accounting, the fair value changes go to P&L and ...
- 16 Sep 2020, 14:52
- Forum: IFRS-related topics
- Topic: Best Free Resource for learning IFRS
- Replies: 3
- Views: 1351
Re: Best Free Resource for learning IFRS
Plenty of videos available on youtube as well. Bottom line is it is not practical to get thorough understanding of all IFRSs by just reading through the text or watching videos. I would suggest targeted research in areas of IFRS which you encounter in practical life.
- 16 Sep 2020, 14:49
- Forum: IFRS-related topics
- Topic: Practical approaches to lease term under IFRS 16
- Replies: 10
- Views: 3401
Re: Practical approaches to lease term under IFRS 16
I think it's more a question of substance over form and that's what makes the whole thing a bit subjective. No entity would make investments in furniture, fixtures and fittings with the intention of abandoning the premises within 12 months. We generally look at the underlying useful life of assets o...
- 31 Aug 2020, 15:13
- Forum: IFRS-related topics
- Topic: IFRS 16 Covid rent concessions
- Replies: 20
- Views: 5325
Re: IFRS 16 Covid rent concessions
IFRS as approved by IASB.
- 31 Aug 2020, 14:34
- Forum: IFRS-related topics
- Topic: IFRS 16 Covid rent concessions
- Replies: 20
- Views: 5325
Re: IFRS 16 Covid rent concessions
This statement is interesting: 'Where companies use the reliefs permitted by the IFRS 16 amendment, they are expected to disclose this in the notes to their financial statements.' I thought there will rather a 'don't ask, don't tell' approach with materiality considerations in the background We pre...
- 31 Aug 2020, 09:24
- Forum: IFRS-related topics
- Topic: IFRS 16 for small Airlines with all dry operating leases
- Replies: 2
- Views: 1174
Re: IFRS 16 for small Airlines with all dry operating leases
Why are you using LIBOR to discount the lease rentals? IFRS 16 requires the entity to use incremental borrowing rate (if implicit rate of return is not available). I am pretty sure any entity (specially one in Pakistan and that too in aviation industry) would be able to borrow at LIBOR. Second, you ...
- 03 Aug 2020, 16:39
- Forum: IFRS-related topics
- Topic: Impairment of subsidiary
- Replies: 7
- Views: 6229
Re: Impairment of subsidiary
Exactly as @jonyicheng said, when you are performing consolidation you reverse the impairment against i.e. credit Retailed earnings / impairment charge and debit the investment in subsidiary and then the investment in subsidiary is eliminated against share capital / pre-acquisition reserves of the s...