Search found 328 matches
- 06 Jul 2023, 17:16
- Forum: IFRS-related topics
- Topic: Interest rate swaps
- Replies: 2
- Views: 3262
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...
- 04 Jul 2023, 17:36
- Forum: IFRS-related topics
- Topic: Inventory Costs including lease under IFRS 16
- Replies: 4
- Views: 3469
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 ...
- 04 Jul 2023, 11:43
- Forum: IFRS-related topics
- Topic: Trade Finance ECL, post modeling adjustment and PD of forebearance
- Replies: 7
- Views: 5816
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.
- 03 Jul 2023, 05:46
- Forum: IFRS-related topics
- Topic: Trade Finance ECL, post modeling adjustment and PD of forebearance
- Replies: 7
- Views: 5816
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...
- 14 Jun 2023, 16:43
- Forum: IFRS-related topics
- Topic: FRC's Thematic Review on IFRS 13
- Replies: 4
- Views: 1213
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 ...
- 14 Jun 2023, 16:25
- Forum: IFRS-related topics
- Topic: FRC's Thematic Review on IFRS 13
- Replies: 4
- Views: 1213
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...
- 25 Mar 2023, 14:26
- Forum: IFRS-related topics
- Topic: IAS 8
- Replies: 11
- Views: 2691
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.
- 09 Mar 2023, 11:24
- Forum: IFRS-related topics
- Topic: Tax assessments results
- Replies: 4
- Views: 1385
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...
- 11 Dec 2022, 08:18
- Forum: IFRS-related topics
- Topic: Deferred tax liability for loss making company
- Replies: 9
- Views: 2739
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.
- 21 Oct 2022, 11:40
- Forum: IFRS-related topics
- Topic: Exchange Gain and Losses on Receipt Not billed transactions
- Replies: 5
- Views: 7457
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...
- 02 Oct 2022, 15:55
- Forum: IFRS-related topics
- Topic: Presentation of investment in subsidiary 100 %
- Replies: 2
- Views: 3224
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?
- 13 Sep 2022, 00:32
- Forum: IFRS-related topics
- Topic: Foreign Exhange Gains and Losses and Inventory Valuation
- Replies: 9
- Views: 4929
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...
- 01 Sep 2022, 00:59
- Forum: IFRS-related topics
- Topic: Financial contribution to subsidiary
- Replies: 9
- Views: 2540
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/
https://ifrscommunity.com/knowledge-bas ... tatements/
- 30 Aug 2022, 15:30
- Forum: IFRS-related topics
- Topic: Impairment review of proportonate goodwill
- Replies: 13
- Views: 3198
Re: Impairment review of proportonate goodwill
Nope. Impairment losses on partial goodwill directly hit the profit attributable to owners of parent.
- 30 Aug 2022, 14:43
- Forum: IFRS-related topics
- Topic: Impairment review of proportonate goodwill
- Replies: 13
- Views: 3198
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...
- 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: 1275
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...
- 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: 1253
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....
- 21 Aug 2022, 16:55
- Forum: IFRS-related topics
- Topic: Are Accruals Financial Liabilities
- Replies: 13
- Views: 6795
Re: Are Accruals Financial Liabilities
Perhaps, IAS 37.11 provides an answer. IFRS technically allows both approaches: presenting accruals integrally with payables and separately.
- 21 Aug 2022, 16:41
- Forum: IFRS-related topics
- Topic: Are Accruals Financial Liabilities
- Replies: 13
- Views: 6795
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...
- 11 Aug 2022, 12:50
- Forum: IFRS-related topics
- Topic: IFRS 16: Treatment of lease liability under IAS 17
- Replies: 6
- Views: 1902
Re: IFRS 16: Treatment of lease liability under IAS 17
Does IAS 17 exist?
- 13 Jul 2022, 16:59
- Forum: IFRS-related topics
- Topic: Realized vs Unrealized timing
- Replies: 33
- Views: 17243
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...
- 11 Jul 2022, 13:47
- Forum: IFRS-related topics
- Topic: IFRS 9 Expected Credit Loss Expense Classification
- Replies: 12
- Views: 6859
- 11 Jul 2022, 12:05
- Forum: IFRS-related topics
- Topic: IFRS 9 Expected Credit Loss Expense Classification
- Replies: 12
- Views: 6859
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 ...
- 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: 2210
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?
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?
- 02 Jul 2022, 10:43
- Forum: IFRS-related topics
- Topic: IAS 19 Employee Benefits
- Replies: 2
- Views: 2297
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.
- 02 Jul 2022, 02:08
- Forum: IFRS-related topics
- Topic: call/put option to non controlling interests
- Replies: 8
- Views: 5530
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 ...
- 01 Jul 2022, 15:01
- Forum: IFRS-related topics
- Topic: call/put option to non controlling interests
- Replies: 8
- Views: 5530
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.
- 30 Jun 2022, 01:30
- Forum: General accounting and financial reporting discussion
- Topic: This way of presenting amortisation
- Replies: 8
- Views: 5003
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...
- 16 Jun 2022, 15:10
- Forum: General accounting and financial reporting discussion
- Topic: P&L or P/L?
- Replies: 9
- Views: 5090
- 01 Jun 2022, 02:05
- Forum: General accounting and financial reporting discussion
- Topic: Possible changes to the EY structure
- Replies: 17
- Views: 25901
Re: Possible changes to the EY structure
Cool! I'd hire flexible challengers for some tough areas e.g. impairment testingTo 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.