Search found 949 matches
- 08 May 2024, 10:11
- Forum: IFRS-related topics
- Topic: How to recognize Revenue for e-commerce.
- Replies: 4
- Views: 63
Re: How to recognize Revenue for e-commerce.
Who's holding the stock? Does ABC operate in the same way as an agent or as a principal?
- 05 May 2024, 10:25
- Forum: IFRS-related topics
- Topic: Irredeemable bond in foreign currency
- Replies: 12
- Views: 130
Re: Irredeemable bond in foreign currency
Again, it seems there are different views on this. I partially share your conclusion. But I also see another conclusion which is entirely liability because it's not fixed for fixed.
Thanks Ketan. Again, if someone in this forum like to contribute some thoughts, that'd be welcoming.
Thanks Ketan. Again, if someone in this forum like to contribute some thoughts, that'd be welcoming.
- 04 May 2024, 17:19
- Forum: IFRS-related topics
- Topic: Irredeemable bond in foreign currency
- Replies: 12
- Views: 130
Re: Irredeemable bond in foreign currency
1. A principal only payable on liquidation is not a liability. A perpetual debt, is a debt not because it's payable on liquidation, it's because the interest, if it is payable, will "eat up" the principal so that there is no amount left to be recognised in equity. 2. In the case that the h...
- 04 May 2024, 16:18
- Forum: IFRS-related topics
- Topic: Irredeemable bond in foreign currency
- Replies: 12
- Views: 130
Re: Irredeemable bond in foreign currency
But the initial investment is immaterial, is it a derivative?
- 04 May 2024, 15:25
- Forum: IFRS-related topics
- Topic: Irredeemable bond in foreign currency
- Replies: 12
- Views: 130
Re: Irredeemable bond in foreign currency
Thanks for taking time to discuss. My point is whether we treat this as a non-derivative, then, it seems that the wording seems to suggest only the obligation to deliver fixed number of shares, without the other leg being fixed cash. If the bond is to deliver a fixed number of shares in the function...
- 04 May 2024, 13:32
- Forum: IFRS-related topics
- Topic: Irredeemable bond in foreign currency
- Replies: 12
- Views: 130
Re: Irredeemable bond in foreign currency
In usd, shares will be issued in usd
- 04 May 2024, 12:37
- Forum: IFRS-related topics
- Topic: Irredeemable bond in foreign currency
- Replies: 12
- Views: 130
Re: Irredeemable bond in foreign currency
No interest.
- 03 May 2024, 20:36
- Forum: IFRS-related topics
- Topic: Irredeemable bond in foreign currency
- Replies: 12
- Views: 130
Irredeemable bond in foreign currency
A irredeemable bond in usd that is convertible into a fixed numbers of shares in use at the option of the holder, issued by an entity with a functional currency in euros.
Would it be classified as liability or equity?
Would it be classified as liability or equity?
- 30 Apr 2024, 19:31
- Forum: IFRS-related topics
- Topic: IFRS 2 fixed bonus pool
- Replies: 13
- Views: 266
Re: IFRS 2 fixed bonus pool
It matters if it's equity settled?
- 30 Apr 2024, 13:09
- Forum: IFRS-related topics
- Topic: Group Restructuring - Common control
- Replies: 6
- Views: 101
Re: Group Restructuring - Common control
If it's the distribution approach you've chosen, then, in Hodco, it should go to P&L, and impairment considerations in Hodco around it's investment in Company A.
- 28 Apr 2024, 15:48
- Forum: IFRS-related topics
- Topic: Preference shares
- Replies: 14
- Views: 452
Re: Preference shares
Yes Ketan, that aligns with my view too. You see that, depending on the assessment, one can have the entire proceed in liability or most of the proceed in equity.
So, I think this has the merit to be raised and discussed further.
Appreciate you taking time to think and reflect. thanks.
So, I think this has the merit to be raised and discussed further.
Appreciate you taking time to think and reflect. thanks.
- 28 Apr 2024, 11:35
- Forum: IFRS-related topics
- Topic: Preference shares
- Replies: 14
- Views: 452
Re: Preference shares
Hi, regarding this case, as I really want to get to the nitty gritty, please @DJP, @ kevin.aycardo, let me know what do you think. I can see your point, because, if the holder exercise their option, the issuer cannot avoid delivering a variable number of shares, therefore it's a financial liability ...
- 27 Apr 2024, 16:56
- Forum: IFRS-related topics
- Topic: Question on convertible bond
- Replies: 4
- Views: 70
Re: Question on convertible bond
Yes, let's assumed it's interst free or dividend at the discretion of the issuer.
- 27 Apr 2024, 16:48
- Forum: IFRS-related topics
- Topic: Preference shares
- Replies: 14
- Views: 452
Re: Preference shares
Hi Ketan, My point on diversity in practice is that a preference share/bond that is no mandatorily converted into cash or a variable number of shares but has an option to the holder to convert into a variable number of shares, for some people, e.g., DJP, is a financial liability in its entirety. As ...
- 27 Apr 2024, 14:51
- Forum: IFRS-related topics
- Topic: Preference shares
- Replies: 14
- Views: 452
Re: Preference shares
fixed to fixed is only applicable to non-derivative that is converted into a variable number of equity or derivative converted into a variable number of equity. So, if you only look at the redemption feature (not the conversion feature) it has no these characteristics, therefore, the fixed to fixed ...
- 27 Apr 2024, 14:45
- Forum: IFRS-related topics
- Topic: Question on convertible bond
- Replies: 4
- Views: 70
Re: Question on convertible bond
agree with the item 2, but disagree with the item 1. Please let's discuss, please have a look at this case, don't you think they are similar? Thanks!
- 27 Apr 2024, 14:40
- Forum: IFRS-related topics
- Topic: Preference shares
- Replies: 14
- Views: 452
Re: Preference shares
I think on this one, there is diversity in practice, it can be argued that the redemption feature and the conversion feature should be looked at separately. The redemption feature being an equity instrument, i.e., because no obligation to deliver cash or fixed number of equity instruments. But the c...
- 27 Apr 2024, 11:19
- Forum: IFRS-related topics
- Topic: Preference shares
- Replies: 14
- Views: 452
Re: Preference shares
Just getting back to this, why it cannot be an equity host,I.e., no contractual obligation to pay cash for the redemption feature. And a derivative for the conversion feature?
Ias32 requires an instrument with a conversion feature to be analyzed separately isn't it?
Ias32 requires an instrument with a conversion feature to be analyzed separately isn't it?
- 27 Apr 2024, 10:34
- Forum: IFRS-related topics
- Topic: Question on convertible bond
- Replies: 4
- Views: 70
Question on convertible bond
1. If a convertible bond doesn't provide with mandatory redemption, but has a conversion option at the holder's discretion to be converted into a variable number of common shares, would the convertible bond include an equity host and an embedded derivative or, a liability in its entirety? 2. If a co...
- 18 Apr 2024, 23:42
- Forum: IFRS-related topics
- Topic: Buying shares at fair value if certain conditions are met
- Replies: 2
- Views: 594
Re: Buying shares at fair value if certain conditions are met
Or eventually, Dr financial asset (for it will receive the shares in company C) Dr liability Eventually, the financial asset is fair valued, same as the financial liability, therefore, the effect of the financial assets cancel the liability so no P&L changes until the shares actually bought out?
- 18 Apr 2024, 20:32
- Forum: IFRS-related topics
- Topic: Buying shares at fair value if certain conditions are met
- Replies: 2
- Views: 594
Re: Buying shares at fair value if certain conditions are met
Or
Dr other equity
Cr liability
I think this makes more sense
Dr other equity
Cr liability
I think this makes more sense
- 18 Apr 2024, 17:47
- Forum: IFRS-related topics
- Topic: Buying shares at fair value if certain conditions are met
- Replies: 2
- Views: 594
Buying shares at fair value if certain conditions are met
Company A and company B hold Company C (60% by A and 40% by B). What would be the accounting entries in company A, if company A has entered into an agreement with company B over the shares of C, if PBT of C reaches a certain level, then Company A is obliged to by 5% of company C at fair value at the...
- 14 Apr 2024, 18:14
- Forum: IFRS-related topics
- Topic: IFRS 2, good/bad leavers, settlement alternatives, and IPO/exit
- Replies: 4
- Views: 769
Re: IFRS 2, good/bad leavers, settlement alternatives, and IPO/exit
How the shares will be valued?
- 12 Apr 2024, 09:25
- Forum: IFRS-related topics
- Topic: Cross-currency swaps
- Replies: 5
- Views: 504
Re: Cross-currency swaps
You need to record the swap instrument as a derivative instrument, in accordance with IFRS 9. All the fluctuation in fair value is recognised in OCI.
- 11 Apr 2024, 17:49
- Forum: IFRS-related topics
- Topic: Perpetual bonds
- Replies: 5
- Views: 699
Re: Perpetual bonds
sorry I read too quick, interest is also at the discretion of the issuer, yes, full equity I agree.
- 11 Apr 2024, 17:07
- Forum: IFRS-related topics
- Topic: Perpetual bonds
- Replies: 5
- Views: 699
Re: Perpetual bonds
Similar to preference shares with principal at the discretion of the issuer and dividends are mandatory, They are not equity for the same reason.
- 11 Apr 2024, 17:03
- Forum: IFRS-related topics
- Topic: Perpetual bonds
- Replies: 5
- Views: 699
Re: Perpetual bonds
my understand is that the principal is perpetual, but the interest is mandatory, so I don't agree with the assessment that it's an equity instrument, because for me it is a compound instrument, with equity being the residual value. because the principal is at the issuer's discretion but the interest...
- 11 Apr 2024, 16:59
- Forum: IFRS-related topics
- Topic: Cross-currency swaps
- Replies: 5
- Views: 504
Re: Cross-currency swaps
you should follow the requirement of a cash flow hedge accounting.
- 11 Apr 2024, 13:54
- Forum: IFRS-related topics
- Topic: Cross-currency swaps
- Replies: 5
- Views: 504
Re: Cross-currency swaps
Are you going to elect for hedge accounting?
- 08 Apr 2024, 18:29
- Forum: IFRS-related topics
- Topic: Prior year adjustments
- Replies: 8
- Views: 836
Re: Prior year adjustments
So nightmarish that they deleted it?