Search found 328 matches

by pub_acco
06 Jul 2023, 17:16
Forum: IFRS-related topics
Topic: Interest rate swaps
Replies: 2
Views: 3222

Re: Interest rate swaps

The accounting treatment actually depends on a number of factors relating to the hedge accounting, but in the most likely scenario, where you have accounted for the IRS and borrowing as a fully effective cash flow hedging relationship, you will recognize the termination gain through other comprehens...
by pub_acco
04 Jul 2023, 17:36
Forum: IFRS-related topics
Topic: Inventory Costs including lease under IFRS 16
Replies: 4
Views: 3426

Re: Inventory Costs including lease under IFRS 16

That's covered by IAS 23, which specifically mentions lease interests as an example of borrowing costs. Generally, borrowing costs are not capitalized as part of inventories, but if the inventories in your case meet the definition of qualifying assets in IAS 23, the lease interest could be included ...
by pub_acco
04 Jul 2023, 11:43
Forum: IFRS-related topics
Topic: Trade Finance ECL, post modeling adjustment and PD of forebearance
Replies: 7
Views: 5744

Re: Trade Finance ECL, post modeling adjustment and PD of forebearance

Take a look at IFRS 9.B5.5.35 and IFRS 9 IE Example 12. They don't even distinguish PD and LGD.
by pub_acco
03 Jul 2023, 05:46
Forum: IFRS-related topics
Topic: Trade Finance ECL, post modeling adjustment and PD of forebearance
Replies: 7
Views: 5744

Re: Trade Finance ECL, post modeling adjustment and PD of forebearance

1. Looks good to me. 2. The simplified approach is generally intended for non-financial institutions that have little knowledge in ECLs but have a bunch of day-to-day trade receivables arising from their ordinary sale of goods and rendering of services. So if you get a "non often" case, yo...
by pub_acco
14 Jun 2023, 16:43
Forum: IFRS-related topics
Topic: FRC's Thematic Review on IFRS 13
Replies: 4
Views: 1156

Re: FRC's Thematic Review on IFRS 13

Yeah that's true, when we look at banks, we'd expect useful IFRS 9 disclosures. Corporates in other industries, such as manufacturing and retailers, still put a lot of boilerplate disclosures in the significant accounting policy section, even when trade receivables only are their material financial ...
by pub_acco
14 Jun 2023, 16:25
Forum: IFRS-related topics
Topic: FRC's Thematic Review on IFRS 13
Replies: 4
Views: 1156

Re: FRC's Thematic Review on IFRS 13

I do have experience putting a lot of bullsh*t boilerplate disclosures around IFRS 9 and 13 :lol: I believe it's partly because, outside of financial industries, basically nobody understands IFRS 9 or 13. Neither do auditors. Sometimes they don't even understand what they are disclosing/auditing. Ev...
by pub_acco
25 Mar 2023, 14:26
Forum: IFRS-related topics
Topic: IAS 8
Replies: 11
Views: 2600

Re: IAS 8

IAS 27.10 says: "The entity shall apply the same accounting for each category of investments." The standard is not actually clear about the meaning of category, but generally you're not supposed to choose one method or another for each investment.
by pub_acco
09 Mar 2023, 11:24
Forum: IFRS-related topics
Topic: Tax assessments results
Replies: 4
Views: 1336

Re: Tax assessments results

If the additional charge resulted from prior year errors, restate the prior year financials. Or, if the prior year tax calculation was a reasonable estimate but has come out a different result, then treat the tax charge as a change in estimate occurring in the current year. Generally speaking, tax p...
by pub_acco
11 Dec 2022, 08:18
Forum: IFRS-related topics
Topic: Deferred tax liability for loss making company
Replies: 9
Views: 2662

Re: Deferred tax liability for loss making company

A deferred tax "liability" should usually be recognized by a loss-making entity, shouldn't it? It's quite possible though that such a DTL is offset against a DTA for unused loss carryforwards.
by pub_acco
21 Oct 2022, 11:40
Forum: IFRS-related topics
Topic: Exchange Gain and Losses on Receipt Not billed transactions
Replies: 5
Views: 7397

Re: Exchange Gain and Losses on Receipt Not billed transactions

If you're correcting an error, you have to reverse all the original entries including forex gains/losses that your accounting software might have created automatically, as if nothing had happened at all. So, if you recorded expense and RNB for a phantom service, you'll reverse the expense and RNB. I...
by pub_acco
02 Oct 2022, 15:55
Forum: IFRS-related topics
Topic: Presentation of investment in subsidiary 100 %
Replies: 2
Views: 3188

Re: Presentation of investment in subsidiary 100 %

Does A not have a long-term interest (as defined in IAS 28) that should be reduced by the accumulated loss or a legal or construction obligation to repay B's debt on its behalf?
by pub_acco
13 Sep 2022, 00:32
Forum: IFRS-related topics
Topic: Foreign Exhange Gains and Losses and Inventory Valuation
Replies: 9
Views: 4834

Re: Foreign Exhange Gains and Losses and Inventory Valuation

The carrying amount of inventories is adjusted by the hedging gain or loss as of the date of inventories recognition, which usually is different than the settlement date of trade payable and currency forward contract. So even with the hedge accounting, the inventories cannot be recorded initially at...
by pub_acco
01 Sep 2022, 00:59
Forum: IFRS-related topics
Topic: Financial contribution to subsidiary
Replies: 9
Views: 2392

Re: Financial contribution to subsidiary

You can account for investments in subsidiaries either at cost, in accordance with IFRS 9 or using the equity method.

https://ifrscommunity.com/knowledge-bas ... tatements/
by pub_acco
30 Aug 2022, 15:30
Forum: IFRS-related topics
Topic: Impairment review of proportonate goodwill
Replies: 13
Views: 3087

Re: Impairment review of proportonate goodwill

Nope. Impairment losses on partial goodwill directly hit the profit attributable to owners of parent.
by pub_acco
30 Aug 2022, 14:43
Forum: IFRS-related topics
Topic: Impairment review of proportonate goodwill
Replies: 13
Views: 3087

Re: Impairment review of proportonate goodwill

Consolidated financial statements consist of separate FSs of parent and subsidiaries and consolidation adjusting entries. You can record and write down partial goodwill through consolidation adjusting entries. Separate PL of a subsidiary is usually auto-allocated to NCI by consolidation software, bu...
by pub_acco
28 Aug 2022, 15:36
Forum: IFRS-related topics
Topic: About Dividend Distribution affects Fair Value Adjustment of Investment in Equity Instrument IFRS 9
Replies: 2
Views: 1222

Re: About Dividend Distribution affects Fair Value Adjustment of Investment in Equity Instrument IFRS 9

Reducing the carrying amount of an FVT* asset doesn't mean a lot because such an asset is anyway carried at fair value. If a dividend clearly is a recovery of cost, the carrying amount of the investment is first reduced by the dividend and then adjusted to fair value through PL or OCI. If the divide...
by pub_acco
27 Aug 2022, 20:27
Forum: IFRS-related topics
Topic: About IFRS 9.B5.2.2 Amortisation of Commission Fees on Disposal of Financial Assets FVOCI
Replies: 2
Views: 1212

Re: About IFRS 9.B5.2.2 Amortisation of Commission Fees on Disposal of Financial Assets FVOCI

I believe "the transaction costs" in the underlined statement mean the purchase commission of CU 2 only, but B5.2.2 is very confusing....
by pub_acco
21 Aug 2022, 16:55
Forum: IFRS-related topics
Topic: Are Accruals Financial Liabilities
Replies: 13
Views: 6242

Re: Are Accruals Financial Liabilities

Perhaps, IAS 37.11 provides an answer. IFRS technically allows both approaches: presenting accruals integrally with payables and separately.
by pub_acco
21 Aug 2022, 16:41
Forum: IFRS-related topics
Topic: Are Accruals Financial Liabilities
Replies: 13
Views: 6242

Re: Are Accruals Financial Liabilities

+1 to the opinions to include accruals in trade payables (or the related liabilities). In practice, I've seen some practices not to record a trade payable until the invoice is issued, but that's simply because the uninvoiced portion is immaterial. If material, a trade payable must be recognized even...
by pub_acco
13 Jul 2022, 16:59
Forum: IFRS-related topics
Topic: Realized vs Unrealized timing
Replies: 33
Views: 17028

Re: Realized vs Unrealized timing

For FVTOCI equity investments, the calculation of "realized" gains/losses effectively is a kind of IFRS requirement under IFRS 7.11B (c), which requires the disclosure of "the cumulative gain or loss on disposal." I believe "the cumulative gain or loss" here is equivale...
by pub_acco
11 Jul 2022, 12:05
Forum: IFRS-related topics
Topic: IFRS 9 Expected Credit Loss Expense Classification
Replies: 12
Views: 6732

Re: IFRS 9 Expected Credit Loss Expense Classification

See also Page 16 of https://www.ifrs.org/content/dam/ifrs/project/revenue-from-contracts-with-customers/project-summary-feedback-statement.pdf There had been strong opinions to present revenue net of credit risk charges during the standard-setting process, but that approach was finally discarded by ...
by pub_acco
09 Jul 2022, 01:54
Forum: IFRS-related topics
Topic: IAS 16 - Key component of equipment used to replace a broken one
Replies: 1
Views: 2158

Re: IAS 16 - Key component of equipment used to replace a broken one

I'd see them as spare parts capitalized as PP&E in accordance with IAS 16.8.

Btw, are they some paper or plastic cards like credit cards or some devices like network cards? How can a card be a critical component of a machine?
by pub_acco
02 Jul 2022, 10:43
Forum: IFRS-related topics
Topic: IAS 19 Employee Benefits
Replies: 2
Views: 2245

Re: IAS 19 Employee Benefits

That's other long-term benefit if not expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related services.
by pub_acco
02 Jul 2022, 02:08
Forum: IFRS-related topics
Topic: call/put option to non controlling interests
Replies: 8
Views: 5308

Re: call/put option to non controlling interests

I'm not aware of all the super complex debates over NCI put, but my understanding is IAS 32.23 is a key, which specifically requires to record a liability at the redemption amount relating to some options over own equity instruments. That's perhaps why the gross liability is recognized in the first ...
by pub_acco
01 Jul 2022, 15:01
Forum: IFRS-related topics
Topic: call/put option to non controlling interests
Replies: 8
Views: 5308

Re: call/put option to non controlling interests

The first put deals P's equity (i.e. non-controlling interest) whereas the second call effectively deals P's assets and liabilities (i.e. control over S). Not really sure though if that's the reason for the different treatments.
by pub_acco
30 Jun 2022, 01:30
Forum: General accounting and financial reporting discussion
Topic: This way of presenting amortisation
Replies: 8
Views: 4793

Re: This way of presenting amortisation

Just learned this way of presentation was about to be banned. https://www.ifrs.org/news-and-events/updates/iasb/2022/iasb-update-june-2022/#4 to withdraw the proposal to specifically prohibit the use of columns for presenting management performance measures in the statement(s) of financial performan...
by pub_acco
01 Jun 2022, 02:05
Forum: General accounting and financial reporting discussion
Topic: Possible changes to the EY structure
Replies: 17
Views: 25506

Re: Possible changes to the EY structure

To curtail the unhealthy dominance of the ‘Big Four’ audit firms, FTSE350 companies will be required to conduct part of their audit with a challenger firm.
Cool! I'd hire flexible challengers for some tough areas e.g. impairment testing :roll: