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
Search found 90 matches
- 10 Nov 2022, 23:02
- Forum: IFRS-related topics
- Topic: Cfd with edf France
- Replies: 13
- Views: 9403
- 10 Nov 2022, 22:51
- Forum: IFRS-related topics
- Topic: PPA: valuation technique
- Replies: 2
- Views: 1263
Re: PPA: valuation technique
Thanks
- 10 Nov 2022, 22:36
- Forum: IFRS-related topics
- Topic: Cfd with edf France
- Replies: 13
- Views: 9403
Re: Cfd with edf France
not yet
- 09 Nov 2022, 12:44
- Forum: IFRS-related topics
- Topic: PPA: valuation technique
- Replies: 2
- Views: 1263
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...
- 06 Nov 2022, 23:26
- Forum: IFRS-related topics
- Topic: Cfd with edf France
- Replies: 13
- Views: 9403
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); ...
- 11 Oct 2022, 19:28
- Forum: IFRS-related topics
- Topic: Cfd with edf France
- Replies: 13
- Views: 9403
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...
- 09 Oct 2022, 14:33
- Forum: IFRS-related topics
- Topic: Cfd with edf France
- Replies: 13
- Views: 9403
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).
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).
- 09 Oct 2022, 01:29
- Forum: IFRS-related topics
- Topic: Cfd with edf France
- Replies: 13
- Views: 9403
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...
- 06 Jun 2021, 14:28
- Forum: IFRS-related topics
- Topic: Embedded derivative
- Replies: 11
- Views: 7197
Re: Embedded derivative
do you think is just a penalty or ED with the same risk and economic characteristics of the host contract?
- 04 Jun 2021, 23:24
- Forum: IFRS-related topics
- Topic: Embedded derivative
- Replies: 11
- Views: 7197
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 ...
- 03 Jun 2021, 14:42
- Forum: IFRS-related topics
- Topic: Embedded derivative
- Replies: 11
- Views: 7197
Re: Embedded derivative
an option to pay in advance and terminate the contract
- 03 Jun 2021, 10:15
- Forum: IFRS-related topics
- Topic: Embedded derivative
- Replies: 11
- Views: 7197
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?
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?
- 02 Jun 2021, 23:10
- Forum: IFRS-related topics
- Topic: Embedded derivative
- Replies: 11
- Views: 7197
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...
- 11 May 2021, 16:16
- Forum: IFRS-related topics
- Topic: Interest Rate Benchmark Reform
- Replies: 0
- Views: 54333
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...
- 02 May 2021, 11:17
- Forum: IFRS-related topics
- Topic: Waiver of loan to subsidiary
- Replies: 12
- Views: 5849
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
What are your thoughts?
Thanks
- 28 Mar 2021, 19:15
- Forum: IFRS-related topics
- Topic: Derivate floor
- Replies: 11
- Views: 6532
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.
- 27 Mar 2021, 22:04
- Forum: IFRS-related topics
- Topic: Derivate floor
- Replies: 11
- Views: 6532
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....
- 21 Mar 2021, 22:31
- Forum: IFRS-related topics
- Topic: Derivate floor
- Replies: 11
- Views: 6532
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...
- 13 Mar 2021, 15:29
- Forum: IFRS-related topics
- Topic: Day 1 gains/losses
- Replies: 3
- Views: 2388
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
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
- 13 Mar 2021, 13:09
- Forum: IFRS-related topics
- Topic: Day 1 gains/losses
- Replies: 3
- Views: 2388
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...
- 31 Jan 2021, 05:41
- Forum: IFRS-related topics
- Topic: Revolving credit facilities accounting
- Replies: 27
- Views: 62905
Re: Revolving credit facilities accounting
Instead, we posted in the assets because we didn't draw the first year.
- 18 Jan 2021, 23:17
- Forum: IFRS-related topics
- Topic: Put option
- Replies: 13
- Views: 5876
Re: Put option
Makes sense! Thank you Marek!
- 18 Jan 2021, 22:58
- Forum: IFRS-related topics
- Topic: Put option
- Replies: 13
- Views: 5876
- 17 Jan 2021, 19:17
- Forum: IFRS-related topics
- Topic: Put option
- Replies: 13
- Views: 5876
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?
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?
- 13 Jan 2021, 21:43
- Forum: IFRS-related topics
- Topic: IAS28 - entity consolidated by equity method
- Replies: 13
- Views: 3727
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
Investments accounted for using the equity method @ Equity attribute to the parent
- 13 Jan 2021, 21:02
- Forum: IFRS-related topics
- Topic: Put option
- Replies: 13
- Views: 5876
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.
The company does not buy 100% because wants to understand the performance of the Group acquired and the expected synergy.
- 13 Jan 2021, 17:09
- Forum: IFRS-related topics
- Topic: Put option
- Replies: 13
- Views: 5876
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? ...
- 10 Jan 2021, 23:34
- Forum: IFRS-related topics
- Topic: IFRS 10 intercompany margin with JV
- Replies: 9
- Views: 3754
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 ...
- 10 Jan 2021, 17:48
- Forum: IFRS-related topics
- Topic: IFRS 10 intercompany margin with JV
- Replies: 9
- Views: 3754
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.
- 10 Jan 2021, 09:47
- Forum: IFRS-related topics
- Topic: IFRS 10 intercompany margin with JV
- Replies: 9
- Views: 3754
Re: IFRS 10 intercompany margin with JV
Yes. I have to add that the asset has to reach a certain IRR.