Search found 14 matches

by Irfan Mustafa
15 Jul 2020, 06:13
Forum: IFRS-related topics
Topic: IFRS - Investment Properties
Replies: 7
Views: 73

Re: IFRS - Investment Properties

IAS 40 allows u to follow cost model. However, even in that case, u need to ascertain (but not account for) fair value (if ascertainable) of the property for disclosure purposes. So u will have to perform market valuation.
by Irfan Mustafa
10 Jul 2020, 06:33
Forum: IFRS-related topics
Topic: IFRS 16 - Lessor accounting
Replies: 5
Views: 106

Re: IFRS 16 - Lessor accounting

Straight line basis is not compulsory, u can use another systematic method. In ur case, the increase is probably due to inflation so u can justify that the yr 1 income is 60k and year 2 income is 62.4k and so on.
by Irfan Mustafa
02 Jul 2020, 08:30
Forum: IFRS-related topics
Topic: Reclassification of Business Model
Replies: 4
Views: 59

Re: Reclassification of Business Model

Sorry. I overlooked. I should have referred to Scenario 4: Scenario 4: Reclassiication out of the fair value through other comprehensive income measurement category and into the amortised cost measurement category [Refer: paragraphs 5.6.5 and B5.6.1] Bank A reclassifies the portfolio of bonds out of...
by Irfan Mustafa
02 Jul 2020, 08:15
Forum: IFRS-related topics
Topic: IAS 20 Government Grant/Assistance
Replies: 8
Views: 90

Re: IAS 20 Government Grant/Assistance

I meant component (b) of the following para Para 80 of IAS 12: (incomplete) Components of tax expense (income) may include: (a) current tax expense (income); (b) any adjustments recognised in the period for current tax of prior periods; (c) the amount of deferred tax expense (income) relating to the...
by Irfan Mustafa
01 Jul 2020, 12:34
Forum: IFRS-related topics
Topic: IFRS15 Significant Finance component and IA37 Provisions
Replies: 4
Views: 52

Re: IFRS15 Significant Finance component and IA37 Provisions

In my opinion, financing component should not be recorded for the second prepayment because this treatment would negate para 61 of IFRS 15.
by Irfan Mustafa
01 Jul 2020, 12:29
Forum: IFRS-related topics
Topic: Cost allocation
Replies: 5
Views: 58

Re: Cost allocation

See para 97 and 98 of IFRS 15. This cost is an admin item.
by Irfan Mustafa
01 Jul 2020, 12:26
Forum: IFRS-related topics
Topic: Revenue or investment
Replies: 6
Views: 66

Re: Revenue or investment

as long as an asset is recorded, does it matter that it's with the name of 'Receivable' or 'Investment'.
by Irfan Mustafa
01 Jul 2020, 12:18
Forum: IFRS-related topics
Topic: Common control transactions
Replies: 24
Views: 563

Re: Common control transactions

As common control transactions are not covered under IFRS 3 (infact under any IFRS) so technically there are no disclosure requirement for these transactions.
by Irfan Mustafa
01 Jul 2020, 12:11
Forum: IFRS-related topics
Topic: IAS 20 Government Grant/Assistance
Replies: 8
Views: 90

Re: IAS 20 Government Grant/Assistance

Lets tackle them one by one: 1. This would be dealt as a credit in tax expense as a prior year adjustment. 2. This would also be dealt as a credit in tax expense as a prior year adjustment. 3. Nothing needs to be done in company's book. 4. Nothing special needs to be done. 5. While assessing recogni...
by Irfan Mustafa
01 Jul 2020, 12:05
Forum: IFRS-related topics
Topic: IAS 27- Investment in Subsidiary (Separate FS)
Replies: 12
Views: 135

Re: IAS 27- Investment in Subsidiary (Separate FS)

If it is already appearing in your books at cost, then u will have to change the accounting policy for measuring it at another method which would be applied retrospectively. I would advise that u should better not change the accounting policy. The reality is reflected in the consolidated financial s...
by Irfan Mustafa
01 Jul 2020, 12:00
Forum: IFRS-related topics
Topic: Reclassification of Business Model
Replies: 4
Views: 59

Re: Reclassification of Business Model

See this example in part B of IFRS 9: Para ref IE 104 and onwards: An entity purchases a portfolio of bonds for its fair value (gross carrying amount) of CU500,000. The entity changes the business model for managing the bonds in accordance with paragraph 4.4.1 of IFRS 9. The fair value of the portfo...
by Irfan Mustafa
01 Jul 2020, 11:52
Forum: IFRS-related topics
Topic: IFRS 16 Lessee Involment before the lease
Replies: 8
Views: 101

Re: IFRS 16 Lessee Involment before the lease

The project was stalled for year and ur company does not seems to have the control of the asset over those year. I think ur company should have written off expenditures incurred on construction during those prior years.
by Irfan Mustafa
07 May 2020, 07:58
Forum: IFRS-related topics
Topic: Useful life vs Lease term
Replies: 4
Views: 281

Re: Useful life vs Lease term

In this case, the useful life of the asset for you is ten years not 4 years because it will work for u for 10 year. U should recogise right of use asset and lease liability for 10 years and amortise accordingly.
by Irfan Mustafa
07 May 2020, 07:10
Forum: IFRS-related topics
Topic: Goodwill, impairment and a different IASB.
Replies: 21
Views: 429

Re: Goodwill, impairment and a different IASB.

There should be an amortisation approach with very short life say 5 years. This will lead entities to identify the underlying actual asset and assign them longer life to avoid aggressive amortisation of goodwill