Search found 190 matches

by Leo
21 May 2021, 12:16
Forum: IFRS-related topics
Topic: IFRS16 - by lessor
Replies: 4
Views: 63

Re: IFRS16 - by lessor

very insightful as always !

Thank you
by Leo
21 May 2021, 11:09
Forum: IFRS-related topics
Topic: IFRS16 - by lessor
Replies: 4
Views: 63

Re: IFRS16 - by lessor

Hi Marek,

Thank you very much for the accounting scheme.

I do have a last question, does it mean that at the commencement date the company have to recognise almost all the revenue at first ? During the subsequent periods, only interest income will be recognised in revenue?

thanks
by Leo
20 May 2021, 19:06
Forum: IFRS-related topics
Topic: IFRS16 - by lessor
Replies: 4
Views: 63

IFRS16 - by lessor

Hi guys, 1. Is that possible to give me a very simple example of the accounting of a finance lease by lessor ? I'm asking this question because I see that in some companies, in their P&L, there is a separate line called "Interest revenue from finance lease calculated using the effective interest met...
by Leo
14 May 2021, 14:01
Forum: IFRS-related topics
Topic: Interest rate swap on debt
Replies: 24
Views: 340

Re: Interest rate swap on debt

Hi guys,

Just came across an interesting article I wanna share with you on this topic :

https://www.cpajournal.com/2017/11/27/i ... lue-hedge/

Thanks !
by Leo
15 Apr 2021, 08:23
Forum: General accounting and financial reporting discussion
Topic: Consolidation problematic
Replies: 3
Views: 118

Re: Consolidation problematic

As you could see, Reseves should be at ZERO, because I have to make an accounting entry, Bidwill/Goodwill to neutralize it. But I don't know how to calculate it !!! I'm very very sorry for the question but really can't find another solution other than share it with you. Thank you very much for your ...
by Leo
15 Apr 2021, 08:20
Forum: General accounting and financial reporting discussion
Topic: Consolidation problematic
Replies: 3
Views: 118

Re: Consolidation problematic

on 02/01/2020, Mother has received Child C from another group, thus, Mother has restructured the group as follows: Mother owns Child B for 50%, and Child B owns Child A for 100% also, Child B owns Child C at 75%. (Mother has control over all the entities, full consolidation method) Previously, on 01...
by Leo
15 Apr 2021, 08:12
Forum: General accounting and financial reporting discussion
Topic: Consolidation problematic
Replies: 3
Views: 118

Consolidation problematic

Hi everyone, I'm struggling with a case that I really can't find the solution. I'd really need your help! At 31/12/2019, Mother has 75% of Child A and 100% of Child B. Statutory of Mother : Shares in Child A 75% 317K€ Shares in Child B 100% 35K€ Capital : -352K€ Statutory of Child A : Cash : 6 367K€...
by Leo
12 Apr 2021, 19:23
Forum: IFRS-related topics
Topic: Calculation of gain & loss on disposal of subsidiary
Replies: 3
Views: 57

Re: Calculation of gain & loss on disposal of subsidiary

I got the answer, I have to take 100M€, after the dividend distribution.
by Leo
12 Apr 2021, 19:08
Forum: IFRS-related topics
Topic: Calculation of gain & loss on disposal of subsidiary
Replies: 3
Views: 57

Calculation of gain & loss on disposal of subsidiary

Hi guys, My parent company Mother sold 100% of Child A on 30 September 2020 (100% Full consolidation before). The annual closing is on 31/12. And the net equity of Child A on 30 September is 100 M€. Child A had paid dividends to Mother previous to the disposal date, on 30/06, for 20M€. The net equit...
by Leo
16 Mar 2021, 14:04
Forum: IFRS-related topics
Topic: IFRS3 - Measurement period
Replies: 7
Views: 90

Re: IFRS3 - Measurement period

Thank you guys for your help !!!
by Leo
15 Mar 2021, 23:17
Forum: IFRS-related topics
Topic: IFRS3 - Measurement period
Replies: 7
Views: 90

IFRS3 - Measurement period

Hi guys, How should I interpret the measurement period of 1 year in IFRS3? If a purchase agreement was signed on 01/02/2020 (acquisition date) and the company close its financials on 31/12/2020. Hypothesis 1: On 15/03/2021, I've received information about some new intangible assets unidentified at t...
by Leo
15 Mar 2021, 09:11
Forum: IFRS-related topics
Topic: Forex exchange gain/loss IAS 21
Replies: 28
Views: 325

Re: Forex exchange gain/loss IAS 21

Marek is right.

I've never used another rate other than the one given by the central bank.
by Leo
05 Mar 2021, 15:14
Forum: IFRS-related topics
Topic: IFRS10 the choice to not consolidate
Replies: 6
Views: 101

Re: IFRS10 the choice to not consolidate

Very clear Marek.

True that we've paid 20M€ in October to acquire the group.

This group has +/- 20M€ of revenue (based on a estimation) and a total assets of 7M€ for FY19.

These are below the legal threshold of our country to establish consolidated statements.
by Leo
05 Mar 2021, 08:05
Forum: IFRS-related topics
Topic: IFRS10 the choice to not consolidate
Replies: 6
Views: 101

Re: IFRS10 the choice to not consolidate

Thank you exIFRS!

good point Marek, thank you!
by Leo
04 Mar 2021, 22:32
Forum: IFRS-related topics
Topic: IFRS10 the choice to not consolidate
Replies: 6
Views: 101

IFRS10 the choice to not consolidate

Hi, Our group has acquired a group of companies for 20M€ (paid full in cash) in early 2020, which is 80% of the shares, only us have the control. There are at least 20 small companies within the group. It's very onerous to create 20 reporting packages and consolidate them and this group had never ap...
by Leo
04 Mar 2021, 08:46
Forum: IFRS-related topics
Topic: Interest rate swap on debt
Replies: 24
Views: 340

Re: Interest rate swap on debt

Thank you Pub acco !!!

However, that means that if I'm applying the hedge accounting, my loan will soar from 500M€ to 560M€. There might be risks that I'll break the covenants and the CEO doesn't like it when debt increase like that...
by Leo
03 Mar 2021, 11:10
Forum: IFRS-related topics
Topic: Interest rate swap on debt
Replies: 24
Views: 340

Re: Interest rate swap on debt

sorry for being ponderous and stubborn. Just allow me to give an example : My company contracted from a bank a borrowing of 500M€ at 01.01.2021 at a 5% interest rate fixed rate. Supposing that there are no costs at inception, EIR = Nominal interest rate. And my company will reimburse the loan at mat...
by Leo
03 Mar 2021, 10:21
Forum: IFRS-related topics
Topic: Interest rate swap on debt
Replies: 24
Views: 340

Re: Interest rate swap on debt

Clear => blur => clear => blur => clear

That resumes my learning process of IFRS.

Thank you DJP, thank you Pub Acco, for your great patience.

Thank you Marek for your forum.
by Leo
03 Mar 2021, 08:00
Forum: IFRS-related topics
Topic: Interest rate swap on debt
Replies: 24
Views: 340

Re: Interest rate swap on debt

From my understanding, if it was correct. For example, a lot of companies have their portfolio of government bonds and corporate bonds in their asset (cash management). If these instruments pass the SPPI tests and qualified as hold to collect and sell, the variation should go to OCI. But, if you hed...
by Leo
03 Mar 2021, 07:46
Forum: IFRS-related topics
Topic: Interest rate swap on debt
Replies: 24
Views: 340

Re: Interest rate swap on debt

So why are we always talking about FV hedge accounting with variation booked in P&L ???

For example :

Page 3 : https://www.cmegroup.com/education/file ... epaper.pdf
by Leo
03 Mar 2021, 07:04
Forum: IFRS-related topics
Topic: Interest rate swap on debt
Replies: 24
Views: 340

Re: Interest rate swap on debt

Hi, thank you very much, I see it now. Could you confirm my understanding : Case : I'd like to contract an FV derivative to hedge my loan at amortized cost. The FV of the derivatives is nil at inception (01.01.2021) and the FV of the derivatives is 10€ at the closing date (31.12.2021) Without hedge ...
by Leo
02 Mar 2021, 23:41
Forum: IFRS-related topics
Topic: Interest rate swap on debt
Replies: 24
Views: 340

Re: Interest rate swap on debt

Thank you very much! it's very clear. Can I contract derivatives to hedge the loan without applying the hedge accounting? So far, the only advantage of applying fair value hedge accounting is that I can book the fair value of the derivatives along with the hedged item instead of financial instrument...
by Leo
02 Mar 2021, 06:54
Forum: IFRS-related topics
Topic: Interest rate swap on debt
Replies: 24
Views: 340

Re: Interest rate swap on debt

Thank you for your answer! However, if the derivatives for hedge purposes aren't eligible to hedge accounting, the gain/loss is also booked in the P&L, canceling the gain/loss of the hedged items in the P&L. To apply Hedge accounting, companies have to prepare extra documentation which is often oner...
by Leo
01 Mar 2021, 22:41
Forum: IFRS-related topics
Topic: Interest rate swap on debt
Replies: 24
Views: 340

Re: Interest rate swap on debt

Sorry if I wasn't clear. If a company applies hedge accounting on the derivatives, the fair value variation should be booked in the P&L. If the company don't apply hedge accounting on the derivatives, the fair value variation is also booked in the P&L. My question was, why apply hedge accounting on ...
by Leo
01 Mar 2021, 22:05
Forum: IFRS-related topics
Topic: Interest rate swap on debt
Replies: 24
Views: 340

Re: Interest rate swap on debt

Just to see if someone might be interested to answer my question.

Thank you.

"what's the fair value hedge for cause the variation of the fair value is recognized in P&L anyways"?
by Leo
23 Feb 2021, 15:39
Forum: IFRS-related topics
Topic: Holding shares less than 20%
Replies: 2
Views: 34

Re: Holding shares less than 20%

thank you !
by Leo
23 Feb 2021, 15:14
Forum: IFRS-related topics
Topic: Holding shares less than 20%
Replies: 2
Views: 34

Holding shares less than 20%

Hi, Sorry for that question, if a Holding holds less than 20% of shares (and no control established) of another company, which accounting standard should apply? I'm thinking of IFRS9, is that correct? My question is that whether I should record the investment at cost or at fair value. Thank you, guy...
by Leo
17 Feb 2021, 15:22
Forum: IFRS-related topics
Topic: IFRS 16 retro bonuses
Replies: 13
Views: 226

Re: IFRS 16 retro bonuses

Hi Marek,

Ok, I understand, so the entry would be

DT Financial assets ???

CR PPE

So the assets in general will not change
by Leo
17 Feb 2021, 13:08
Forum: IFRS-related topics
Topic: IFRS 16 retro bonuses
Replies: 13
Views: 226

Re: IFRS 16 retro bonuses

Hi, I don't understand neither the accounting entry, I understand the first one when you purchase the property : 1/ purchase the equipment Dr Equipment Cr Settlements Dr Settlements Cr Cash But when you lease it out, why do you have to book something? Isn't it the renting revenue that you'll book in...