Search found 33 matches

by AQS
21 Jun 2021, 18:04
Forum: IFRS-related topics
Topic: Share warrants issued to shareholders
Replies: 6
Views: 3219

Re: Share warrants issued to shareholders

Hi, First of all small caveat, answer for financial instruments questions is not very straight forward & devils is in the detail. But I can provide you some reference points for your reading which will help. Search: VIEWPOINTS: Applying IFRS in the mining Industry. Handout issued by CPA Canada. ...
by AQS
07 May 2021, 19:43
Forum: IFRS-related topics
Topic: Stock warrants to Broker
Replies: 6
Views: 3558

Re: Stock warrants to Broker

Thanks dear! Really appreciate you help. B/w I also wanted this to be IFRS 2 :). & just to add more flavour to this trx. this scope exemptions kicks in only when the services are acquired in a transaction which has been recorded as financial instrument & our trx is compound instrument so not...
by AQS
07 May 2021, 18:19
Forum: IFRS-related topics
Topic: Stock warrants to Broker
Replies: 6
Views: 3558

Re: Stock warrants to Broker

Thanks for putting you time on this. You can say cash less exercise. So warrant holder won’t pay any cash at the time of exercise instead they will receive less shares. Broker liability is to pay exercise price in cash, so instead of paying the exercise price broker will tell us to effectively sell ...
by AQS
07 May 2021, 07:55
Forum: IFRS-related topics
Topic: Stock warrants to Broker
Replies: 6
Views: 3558

Stock warrants to Broker

Hello Members, Need your help on accounting of stock warrants issued to broker in lieu of services provided for issue of common shares. Ideally if nothing else involved this would qualify under IFRS 2, but there is a scope exemption under IFRS2.6, which states that if goods & services within the...
by AQS
06 May 2021, 12:51
Forum: IFRS-related topics
Topic: OCI Impact on CF
Replies: 7
Views: 3929

Re: OCI Impact on CF

Agreed on the point that IAS 7 is not only related to cash & cash equivalent. But if you read para 28 it specifically says “ the effect of exchange rate change on cash & cash equivalent held ...... reported in CF in order to reconcile op & closing cash & cash equivalent” I am referri...
by AQS
06 May 2021, 11:39
Forum: IFRS-related topics
Topic: OCI Impact on CF
Replies: 7
Views: 3929

Re: OCI Impact on CF

Thanks a lot DJP! Yes I am talking about cash flow here. 7.28 basically relates to effect of fx rate on cash & cash equivalent. I am looking for impact of foreign currency translation reserve through OCI. At the end of reporting period we convert net assets of foreign subsidiary into parent comp...
by AQS
06 May 2021, 06:58
Forum: IFRS-related topics
Topic: OCI Impact on CF
Replies: 7
Views: 3929

OCI Impact on CF

Hello Members, Need clarification on impact of OCI related item on CF. We have foreign currency translation reserve arising out of conversion of foreign subsidiaries net assets converted into Parent company functional currency at each period end date, with the impact being recorded in OCI. In my CF ...
by AQS
13 Apr 2021, 15:04
Forum: IFRS-related topics
Topic: Shares issued along with warrants
Replies: 9
Views: 3161

Re: Shares issued along with warrants

Thanks!
by AQS
13 Apr 2021, 12:28
Forum: IFRS-related topics
Topic: Shares issued along with warrants
Replies: 9
Views: 3161

Re: Shares issued along with warrants

Yes, we can say that the proceeds is for stocks & warrants. Once those warrants will be exercised & converted into shares the holders will pay a price for the shares ( warrant exercise price).
Another way of looking into this, as the price of shares goes up the value of warrants goes up.
by AQS
13 Apr 2021, 02:55
Forum: IFRS-related topics
Topic: Shares issued along with warrants
Replies: 9
Views: 3161

Shares issued along with warrants

Hello Members, Need your help to clarify an equity related trx. We raised money from capital market and along with shares issued stock warrants to investors. For e.g. Issued 1M shares @ $10/share = $10M (received cash net of commission $9.8M). Issued 100,000 warrants (with net settlement feature, wh...
by AQS
02 Oct 2020, 17:00
Forum: IFRS-related topics
Topic: Business Combination- Settlement of debt
Replies: 5
Views: 1265

Re: Business Combination- Settlement of debt

or you can say this is one of deal's condition that we (the acquirer) settle shareholders loan upon entering into deal.
Thanks
by AQS
02 Oct 2020, 15:09
Forum: IFRS-related topics
Topic: Business Combination- Settlement of debt
Replies: 5
Views: 1265

Re: Business Combination- Settlement of debt

We will repay the loan before entering into deal.

Thanks
by AQS
02 Oct 2020, 00:15
Forum: IFRS-related topics
Topic: Business Combination- Settlement of debt
Replies: 5
Views: 1265

Business Combination- Settlement of debt

Hello Members, Have question on purchase consideration paid on business combination. We are looking to acquire an unlisted entity (Acquiree) by issuing our shares. Acquire has share holders loan which they want to settle before entering into this deal. My understanding is, if this would be a third p...
by AQS
09 Jul 2020, 08:00
Forum: IFRS-related topics
Topic: Principal vs Agent - Cost plus reimbursement
Replies: 5
Views: 1587

Re: Principal vs Agent - Cost plus reimbursement

Make sense. Do you think the reimbursable marketing expense should be a part of COS & not an operating expense.

Thanks
by AQS
09 Jul 2020, 07:44
Forum: IFRS-related topics
Topic: Principal vs Agent - Cost plus reimbursement
Replies: 5
Views: 1587

Re: Principal vs Agent - Cost plus reimbursement

Thanks Anand! Reimbursement of marketing cost is fixed i.e. irrespective whether “A”accept the referral or refuse it. The only thing we lose is additional $10. ( which in other words you can say comprises of our other expenses (excl. mkt) & profit) “A”will reimburse 100% of marketing expense. Pl...
by AQS
09 Jul 2020, 01:46
Forum: IFRS-related topics
Topic: Principal vs Agent - Cost plus reimbursement
Replies: 5
Views: 1587

Principal vs Agent - Cost plus reimbursement

Hi Members, Need your help to clarify a transaction. We have an arrangement with another company "A" whereby we refer our members to "A" which help them to sell their product to our members (in substance we perform all due diligence and back end work before referring it to "...
by AQS
24 Jun 2020, 08:00
Forum: IFRS-related topics
Topic: Options issued in lieu of financial liability modification
Replies: 1
Views: 684

Options issued in lieu of financial liability modification

Hi Members, We have issued debentures to non-employees & paying them interest in cash at specified interest rate. Now we are going to modify the terms of our financial liability & reducing the interest rate of debentures plus instead of paying interest in cash going to issue shares at each i...
by AQS
12 Jun 2020, 00:36
Forum: IFRS-related topics
Topic: Substantial Debt restructuring - IFRS 9
Replies: 10
Views: 2633

Re: Substantial Debt restructuring - IFRS 9

Thanks a lot Marek! I agree equity portion won't change. Equity entry i am showing above in my JE is from new financial liability (split accounting of new financial liability after modification & de-recognition of old financial liab). But the confusion i have is how to record P&L charge? If ...
by AQS
11 Jun 2020, 17:50
Forum: IFRS-related topics
Topic: Substantial Debt restructuring - IFRS 9
Replies: 10
Views: 2633

Re: Substantial Debt restructuring - IFRS 9

Hello Members, Keeping on the same topic but a different transaction. We have a compound financial instrument for which we are doing split accounting, now we have amended the terms of our instrument(extension of maturity date & reduction in conversion price) & it qualifies for de-recognition...
by AQS
09 Jan 2020, 20:21
Forum: IFRS-related topics
Topic: Servicing asset or liability - IFRS 9/ IAS 39
Replies: 3
Views: 1988

Re: Servicing asset or liability - IFRS 9/ IAS 39

Thanks Marek!

Really appreciate you comments.

For point 4, i understand to treat servicing asset as intangible asset, but what if, it's a liability & what about cash received as fee?
by AQS
09 Jan 2020, 02:01
Forum: IFRS-related topics
Topic: IFRS 10 Consolidation of trust
Replies: 7
Views: 7055

Re: IFRS 10 Consolidation of trust

Hi, See below some references that might help you to determine whether the structured entity should be consolidated or not. Two questions you need to look into at first. 1.Is the entity a structured entity? Relevant IFRS : [IFRS 12.A, B21] A ‘structured entity’ is an entity that has been designed so...
by AQS
09 Jan 2020, 01:52
Forum: IFRS-related topics
Topic: Servicing asset or liability - IFRS 9/ IAS 39
Replies: 3
Views: 1988

Servicing asset or liability - IFRS 9/ IAS 39

Hello Group, Need your opinion on servicing asset/Liability as per IFRS 9. I have been researching a lot on this, but couldn't find much & still have so many questions. We have sold a financial asset (Loan portfolio) , with all the rights & controls associated with the asset & accordingl...
by AQS
03 Oct 2019, 20:24
Forum: IFRS-related topics
Topic: De-Recognition of financial asset - IFRS 9
Replies: 1
Views: 807

De-Recognition of financial asset - IFRS 9

Hi Marek, Seeking your opinion on de-recognition of financial asset under IFRS 9. Company A sold to third party (i.e. No SPE or Securitization) its loan book at carrying amount (Principal less accumulated prov.) plus X amount. Say the carrying amount of loan book is $4.5 million ($5M principal less ...
by AQS
01 Oct 2019, 14:51
Forum: IFRS-related topics
Topic: Discontinued operation - IFRS 5
Replies: 3
Views: 1124

Re: Discontinued operation - IFRS 5

Hi Marek, We operates as a single CGU, since the Company’s cash flows are considered linked to value proposition of our s/w as a whole. Although certain cash flows can be tied to product A, a significant portion of operating resources and cash flows relate to various products and our entire s/w. As ...
by AQS
30 Sep 2019, 18:30
Forum: IFRS-related topics
Topic: Discontinued operation - IFRS 5
Replies: 3
Views: 1124

Discontinued operation - IFRS 5

Hi Marek, I need some help to clarify my understanding regarding discontinued operation. We only have two revenue streams "A" & "B" (both contributing approx 50% each), we can further dissect "B" into say B1 & B2. We have an intangible asset (s/w) which we use t...
by AQS
19 Sep 2019, 16:30
Forum: IFRS-related topics
Topic: Contingent consideration - IFRS 15
Replies: 4
Views: 1670

Re: Contingent consideration - IFRS 15

Thanks a lot Marek!
by AQS
18 Sep 2019, 20:16
Forum: IFRS-related topics
Topic: Contingent consideration - IFRS 15
Replies: 4
Views: 1670

Re: Contingent consideration - IFRS 15

Thanks a lot Marek!

Just curious was this same under IAS 18?
by AQS
18 Sep 2019, 16:59
Forum: IFRS-related topics
Topic: Contingent consideration - IFRS 15
Replies: 4
Views: 1670

Contingent consideration - IFRS 15

Hello Members, Need clarification on revenue recognition under IFRS 15. We receive commission from our customers for every single client we refer to them. Our commission structure is such that we receive 60% of the revenue up front & 40% at different intervals i.e. 10% at 6 months, 20% 12 months...