Search found 90 matches

by Jonny
10 Nov 2022, 23:02
Forum: IFRS-related topics
Topic: Cfd with edf France
Replies: 13
Views: 9310

Re: Cfd with edf France

Yes, but still waiting replay. Honestly, as it is common since 2017 in France, I expected a fast reply.
IMO is a derivative but as is an incentive plan I expect a specific analysis.
Thanks
by Jonny
10 Nov 2022, 22:51
Forum: IFRS-related topics
Topic: PPA: valuation technique
Replies: 2
Views: 1238

Re: PPA: valuation technique

Thanks
by Jonny
10 Nov 2022, 22:36
Forum: IFRS-related topics
Topic: Cfd with edf France
Replies: 13
Views: 9310

Re: Cfd with edf France

not yet
by Jonny
09 Nov 2022, 12:44
Forum: IFRS-related topics
Topic: PPA: valuation technique
Replies: 2
Views: 1238

PPA: valuation technique

Hi in a PPA (Purchase price allocation) what valuation technique you usually use for the calculation of the fair value of a plant (e.g waste to energy plant not build internally with a limited, in terms of years, usefull life, permit and incentives) in a PPA process and why: - c (e.g DCF) - Cost app...
by Jonny
06 Nov 2022, 23:26
Forum: IFRS-related topics
Topic: Cfd with edf France
Replies: 13
Views: 9310

Re: Cfd with edf France

The main characteristics of the CFD are as follows: - Sale of electricity on the wholesale market, mainly through contracts concluded with aggregators; - CFD concluded with EDF; - Target remuneration of the electricity: between 72€ and 74€/MWh, depending on the diameter of the rotor (L indexation); ...
by Jonny
11 Oct 2022, 19:28
Forum: IFRS-related topics
Topic: Cfd with edf France
Replies: 13
Views: 9310

Re: Cfd with edf France

looks like. IMO it does not meet this point: "its value changes in response to changes in the so-called ‘underlying’, i.e. the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or oth...
by Jonny
09 Oct 2022, 14:33
Forum: IFRS-related topics
Topic: Cfd with edf France
Replies: 13
Views: 9310

Re: Cfd with edf France

sure!

If the market price is 100. The company cashes 100 from the aggregator for selling energy and pays to EDF 26 euro per MWh (100-74).
If the market price is 50. The company cashes 50 from the aggregator for selling energy and cashes from EDF 24 euro per MWh (50-74).
by Jonny
09 Oct 2022, 01:29
Forum: IFRS-related topics
Topic: Cfd with edf France
Replies: 13
Views: 9310

Cfd with edf France

Hi The French government in 2016 decided to replace the FIT ( feed in tariff) incentive scheme by the CFD. The FIT before was concluded with EDF. With the new scheme the producer sells energy produced on the wholesale market, mainly through contracts concluded with aggregator and has a CFD (Contract...
by Jonny
06 Jun 2021, 14:28
Forum: IFRS-related topics
Topic: Embedded derivative
Replies: 11
Views: 7100

Re: Embedded derivative

do you think is just a penalty or ED with the same risk and economic characteristics of the host contract?
by Jonny
04 Jun 2021, 23:24
Forum: IFRS-related topics
Topic: Embedded derivative
Replies: 11
Views: 7100

Re: Embedded derivative

I agree that there isn’t a underlying in this case. I have an other example coming on. What about a contract to sell steel 1000 ton at a fixed price (40 euro/ton) for 2 years with an option for the buyer to terminate the contract after one year with a penalty defined in this way: a) amount equal to ...
by Jonny
03 Jun 2021, 14:42
Forum: IFRS-related topics
Topic: Embedded derivative
Replies: 11
Views: 7100

Re: Embedded derivative

an option to pay in advance and terminate the contract
by Jonny
03 Jun 2021, 10:15
Forum: IFRS-related topics
Topic: Embedded derivative
Replies: 11
Views: 7100

Re: Embedded derivative

thanks for your input

but as far as I know it is possible to account a floor or a cap option separately at inception in a "own use" selling contract of goods if the floor (or cap ) is "in the money"

can you help me understand the different situation?
by Jonny
02 Jun 2021, 23:10
Forum: IFRS-related topics
Topic: Embedded derivative
Replies: 11
Views: 7100

Embedded derivative

Hi A Pre-payment option in debt instruments could not be closely related to the host debt contract and needs to be separated. IFRS 9 para B4.3.5(e). The ifrs are clear in this case. Instead a Pre-payment option in a in executory contracts or service contracts entered into to meet the entity’s expect...
by Jonny
11 May 2021, 16:16
Forum: IFRS-related topics
Topic: Interest Rate Benchmark Reform
Replies: 0
Views: 53405

Interest Rate Benchmark Reform

Hi how are you getting ready to manage the Interest Rate Benchmark Reform? I’m starting now to understand the impact. As far as I understand IASB issues amendments Interest Rate Benchmark Reform—Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) with practical expedient. The reform i...
by Jonny
02 May 2021, 11:17
Forum: IFRS-related topics
Topic: Waiver of loan to subsidiary
Replies: 12
Views: 5595

Re: Waiver of loan to subsidiary

Regarding the posting of A I would post the amount waived on investment of S and then do a impairment test.
What are your thoughts?
Thanks
by Jonny
28 Mar 2021, 19:15
Forum: IFRS-related topics
Topic: Derivate floor
Replies: 11
Views: 6428

Re: Derivate floor

We expect a gain or loss at inception because it is difficult that the fv it is zero. We experienced it with a different structured Ppa (Swap) that the fv at inception was not zero. In the auditor’s ( big 4) opinion the gain or loss has to be always posted in p&l when applying hedge accounting.
by Jonny
27 Mar 2021, 22:04
Forum: IFRS-related topics
Topic: Derivate floor
Replies: 11
Views: 6428

Re: Derivate floor

Hi thanks for your help. It is a option. The company A is not paying at inception but paying the discount on the forward market price. We are thinking to estimate the fv of the option at inception considering the volatility. The difference with zero should be posted in p&l as day 1 gain or loss....
by Jonny
21 Mar 2021, 22:31
Forum: IFRS-related topics
Topic: Derivate floor
Replies: 11
Views: 6428

Derivate floor

Hi How can I estimate, at inception, the fair value of a financial Gas Power Purchase Agreement designated as hedging instrument with a mechanism of floating price with a floor? The company A sells and produces gas and has signed with Company B the contract. Company A pays a discount of 10% on the m...
by Jonny
13 Mar 2021, 15:29
Forum: IFRS-related topics
Topic: Day 1 gains/losses
Replies: 3
Views: 2329

Re: Day 1 gains/losses

thanks

the financial instrument is a pure financial arrangement between a electricity generator and a customer, that enables both parties to hedge against electricity market price volatility in a market liquid only for the first 8 years.

Hope helps
by Jonny
13 Mar 2021, 13:09
Forum: IFRS-related topics
Topic: Day 1 gains/losses
Replies: 3
Views: 2329

Day 1 gains/losses

As you know IFRS 9 limits the possibility of immediate recognition of so-called ‘day 1 gains/losses’ to financial instruments with a quoted market price or with fair value based on a valuation technique that uses only data from observable markets (Level 1). In our case a 12-year financial instrument...
by Jonny
31 Jan 2021, 05:41
Forum: IFRS-related topics
Topic: Revolving credit facilities accounting
Replies: 27
Views: 61291

Re: Revolving credit facilities accounting

Instead, we posted in the assets because we didn't draw the first year.
by Jonny
18 Jan 2021, 23:17
Forum: IFRS-related topics
Topic: Put option
Replies: 13
Views: 5780

Re: Put option

Makes sense! Thank you Marek!
by Jonny
18 Jan 2021, 22:58
Forum: IFRS-related topics
Topic: Put option
Replies: 13
Views: 5780

Re: Put option

Marek Muc wrote: 18 Jan 2021, 15:52 what is the measurement basis? fair value?
yes
by Jonny
17 Jan 2021, 19:17
Forum: IFRS-related topics
Topic: Put option
Replies: 13
Views: 5780

Re: Put option

Thank you, Marek. Yes, I have access.
The auditor (big four) is in the opinion to use risk free for the put. They say it is just a matter of time.
Where can I find a table with the discount rate to use for each item?
by Jonny
13 Jan 2021, 21:43
Forum: IFRS-related topics
Topic: IAS28 - entity consolidated by equity method
Replies: 13
Views: 3656

Re: IAS28 - entity consolidated by equity method

I presume you are consolidating only 40% of the equity. The posting would be:

Investments accounted for using the equity method @ Equity attribute to the parent
by Jonny
13 Jan 2021, 21:02
Forum: IFRS-related topics
Topic: Put option
Replies: 13
Views: 5780

Re: Put option

We plan to book the put option using the risk free. The amount is due. Non other risk must be considered. Is it correct?

The company does not buy 100% because wants to understand the performance of the Group acquired and the expected synergy.
by Jonny
13 Jan 2021, 17:09
Forum: IFRS-related topics
Topic: Put option
Replies: 13
Views: 5780

Put option

Hi An entity X has entered a Business combination acquiring the 70% of a Group Y. The NCI has a put option to sell the 30% shares. Which discount rate I must use to calculate the NPV of the put? Risk free or kd? Why? Does the Entity X have to post the put option in his separate Financial statement? ...
by Jonny
10 Jan 2021, 23:34
Forum: IFRS-related topics
Topic: IFRS 10 intercompany margin with JV
Replies: 9
Views: 3673

Re: IFRS 10 intercompany margin with JV

Interesting, I did not think about this. Reeding IFRS 11 B27 IMO seams a JV because: - The parties have no interests (ie no rights, title or ownership) in the assets of the arrangement. - The contractual arrangement establishes that the parties to the joint arrangement are liable to the arrangement ...
by Jonny
10 Jan 2021, 17:48
Forum: IFRS-related topics
Topic: IFRS 10 intercompany margin with JV
Replies: 9
Views: 3673

Re: IFRS 10 intercompany margin with JV

no, JV carries out only activity for the shareholders. In case the assets are not interesting for the shareholders JV can sell it to third parties.
by Jonny
10 Jan 2021, 09:47
Forum: IFRS-related topics
Topic: IFRS 10 intercompany margin with JV
Replies: 9
Views: 3673

Re: IFRS 10 intercompany margin with JV

Yes. I have to add that the asset has to reach a certain IRR.