Search found 59 matches
- 20 Mar 2024, 13:53
- Forum: IFRS-related topics
- Topic: Definition of Gross Margin under IFRS
- Replies: 6
- Views: 549
Re: Definition of Gross Margin under IFRS
OK, thanks everyone for your inputs!
- 19 Mar 2024, 18:54
- Forum: IFRS-related topics
- Topic: Definition of Gross Margin under IFRS
- Replies: 6
- Views: 549
Re: Definition of Gross Margin under IFRS
Thanks JRSB.
Will it be possible under IFRS 18 ?
Will it be possible under IFRS 18 ?
- 19 Mar 2024, 15:35
- Forum: IFRS-related topics
- Topic: Definition of Gross Margin under IFRS
- Replies: 6
- Views: 549
Definition of Gross Margin under IFRS
Hi All, Does IFRS/IAS define the term "Gross Margin" anywhere ? Reason for the query: A Logistics entity spends USD 10 million on its payroll, $ 7M of which relates to employees working in its warehouse/transportation business and $ 3M on Administrative and Sales staff salaries. So also De...
- 09 Jun 2023, 20:15
- Forum: IFRS-related topics
- Topic: IAS-24 Related party relationship
- Replies: 14
- Views: 3850
Re: IAS-24 Related party relationship
Already did
- 09 Jun 2023, 12:33
- Forum: IFRS-related topics
- Topic: IAS-24 Related party relationship
- Replies: 14
- Views: 3850
Re: IAS-24 Related party relationship
We don't have a smiley for thumbs up
- 08 Jun 2023, 21:27
- Forum: IFRS-related topics
- Topic: IAS-24 Related party relationship
- Replies: 14
- Views: 3850
Re: IAS-24 Related party relationship
Most likely yes!
- 08 Jun 2023, 20:54
- Forum: IFRS-related topics
- Topic: IAS-24 Related party relationship
- Replies: 14
- Views: 3850
Re: IAS-24 Related party relationship
Yes Marec, the entity receiving the service is smaller than the other joint operator, hence the value of such services is significant in the current year for the recipient. And yes, its true Ketan, they have a tough job drawing the boundary lines, but transfer of resources free-of-charge in such cas...
- 08 Jun 2023, 19:57
- Forum: IFRS-related topics
- Topic: IAS-24 Related party relationship
- Replies: 14
- Views: 3850
Re: IAS-24 Related party relationship
"Highly likely" to help each other out, more than two completely unrelated entities - is probably a more appropriate description of what I had in mind. Came across a case recently where one joint operator provided technical staff to their other joint operator for their in-house HR/Accts fu...
- 08 Jun 2023, 19:50
- Forum: IFRS-related topics
- Topic: Equity component of convertible loan upon settlement.
- Replies: 10
- Views: 2785
- 08 Jun 2023, 18:20
- Forum: IFRS-related topics
- Topic: Equity component of convertible loan upon settlement.
- Replies: 10
- Views: 2785
Re: Equity component of convertible loan upon settlement.
Thanks Ketan. No not debt-for-equity swaps, I was referring only to conversion happening on the occurrence of a conversion event before maturity. So, it would appear that, in scenario 2 above, assuming the fair value of the liability component was the same as the carrying amount, nothing would go to...
- 08 Jun 2023, 17:58
- Forum: IFRS-related topics
- Topic: IAS-24 Related party relationship
- Replies: 14
- Views: 3850
Re: IAS-24 Related party relationship
Thanks Ketan, I agree. The essence however, of the related party standard (IAS-24) is to disclose relationships and balances where arms length transactions are likely to be overriden ? I think some of the relationships that are scoped out by the standard should be scoped in ? But ofcourse, that is t...
- 08 Jun 2023, 12:24
- Forum: IFRS-related topics
- Topic: Equity component of convertible loan upon settlement.
- Replies: 10
- Views: 2785
Re: Equity component of convertible loan upon settlement.
Just realised that the missing debit would be partly or wholly covered over a period of time since inception of the convertible loans, by way of unwinding of the interest, under the effective interest rate method. So the loan balance at the date of the conversion event would be higher than 30,000. I...
- 07 Jun 2023, 21:31
- Forum: IFRS-related topics
- Topic: IAS-24 Related party relationship
- Replies: 14
- Views: 3850
IAS-24 Related party relationship
Hi All, IAS-24 para 11 (b) basically states that two joint venturers, simply because they share joint control of a joint venture, are NOT related parties. I guess the same would apply if they were two joint operators, jointly controlling a joint operation. Is this statement in the standard to be tak...
- 07 Jun 2023, 21:26
- Forum: IFRS-related topics
- Topic: Equity component of convertible loan upon settlement.
- Replies: 10
- Views: 2785
Re: Equity component of convertible loan upon settlement.
What would be the accounting entry upon extinguishment ? Dr. Convertible Loan 30,000 Dr. ?????????? Cr. Share capital 50,000 There is already 20,000 sitting in equity since Day 1. Or would we pass the following entry ? Dr. Convertible Loan 30,000 Cr. Share capital 30,000 And then move the 20,000 als...
- 07 Jun 2023, 09:11
- Forum: IFRS-related topics
- Topic: Internally generated intangible asset
- Replies: 5
- Views: 1694
Re: Internally generated intangible asset
Yes, I agree.
- 07 Jun 2023, 08:49
- Forum: IFRS-related topics
- Topic: Internally generated intangible asset
- Replies: 5
- Views: 1694
Re: Internally generated intangible asset
Thanks Ketan, my view is also hovering around that conclusion. I think it fails the "separability" test ? Can such a certification be separated from the entity and sold, transferred, licensed, rented, or exchanged (I think not), or does it arise from legal or contractual rights (I think no...
- 06 Jun 2023, 22:01
- Forum: IFRS-related topics
- Topic: Internally generated intangible asset
- Replies: 5
- Views: 1694
Internally generated intangible asset
Hello All! A higher education institution started the process of getting itself accredited with an American higher education board in 2021, with a view to improving its credentials, marketability and consequently its financial performance. Until the first half of 2022, limited time was spent by its ...
- 16 May 2023, 16:48
- Forum: IFRS-related topics
- Topic: SPPI test
- Replies: 4
- Views: 1015
Re: SPPI test
Thanks a lot Jakob!
- 16 May 2023, 12:04
- Forum: IFRS-related topics
- Topic: SPPI test
- Replies: 4
- Views: 1015
Re: SPPI test
Thanks Jakob. The 51% return is stipulated in the contract. It is an Islamic Sharia compliant arrangement called "Murabaha". The return is calculated on the basis of Principal ($26M) x Margin (50%) x ~8 years = $102M. As you may be aware, interest is called 'profit' under Islamic Sharia la...
- 15 May 2023, 20:05
- Forum: IFRS-related topics
- Topic: SPPI test
- Replies: 4
- Views: 1015
SPPI test
Dear All, An Islamic financing arrangement is entered into between a borrower and lender (both legally registered entities), wherein, the term is 8 years, and the rate of "profit" is fixed at 51% per annum, to be paid in a single bullet payment at the end of the financing arrangement, alon...
- 30 Mar 2023, 14:02
- Forum: IFRS-related topics
- Topic: Employee Benefits and IFRS 9
- Replies: 4
- Views: 1778
Re: Employee Benefits and IFRS 9
Thanks, yes that would be a good argument for exclusion.
- 16 Mar 2023, 16:34
- Forum: IFRS-related topics
- Topic: Employee Benefits and IFRS 9
- Replies: 4
- Views: 1778
Re: Employee Benefits and IFRS 9
Thanks DJP, I am of the same view, that these should be financial liabilities. Just thinking aloud to justify this stance :) ....the IFRIC begins with the specific case of "long service leave", and goes on to refer to "other formal and informal arrangements". So long as these are...
- 15 Mar 2023, 17:48
- Forum: IFRS-related topics
- Topic: Employee Benefits and IFRS 9
- Replies: 4
- Views: 1778
Employee Benefits and IFRS 9
Hi All, IFRS 9 para 2.1(c) scopes out the following: employers’ rights and obligations under employee benefit plans, to which IAS 19 Employee Benefits applies. We commonly have accruals relating to employee remuneration and benefits on the balance sheet, relating to staff salary, bonuses, vacation p...
- 13 Mar 2023, 21:01
- Forum: IFRS-related topics
- Topic: Interest rate risk affecting fair value
- Replies: 8
- Views: 2052
Re: Interest rate risk affecting fair value
Gentlemen, Read through all your comments/clarifications, thanks. Noted that fair value disclosure is required under IFRS 7.25-29. However, isn't sensitivity analysis disclosure just one step further, once you calculate the fair value of a fixed rate financial instrument - eg. "if the market in...
- 13 Mar 2023, 09:56
- Forum: IFRS-related topics
- Topic: Interest rate risk affecting fair value
- Replies: 8
- Views: 2052
Re: Interest rate risk affecting fair value
Got it Jakob and DJP, thanks. Let's say we do not have any FVTPL assets/liabilities, no FVOCI debt financial assets and no derivatives. Only fixed-rate loans (both assets and liabilities) carried at amortised cost. For disclosure in the financial statements, could one possibly compute a sensitivity ...
- 13 Mar 2023, 06:40
- Forum: IFRS-related topics
- Topic: Interest rate risk affecting fair value
- Replies: 8
- Views: 2052
Interest rate risk affecting fair value
Hi All, IFRS 7 defines "Interest rate risk" as: "The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates." It is no doubt clear that in the case of variable interest rate loan, the future cashflows wil...
- 10 Mar 2023, 20:15
- Forum: IFRS-related topics
- Topic: Flow rate calculations for IFRS 9 ECL provisioning
- Replies: 5
- Views: 1665
Re: Flow rate calculations for IFRS 9 ECL provisioning
Thanks Jakob, will go through the KPMG paper as well.
- 10 Mar 2023, 17:53
- Forum: IFRS-related topics
- Topic: Flow rate calculations for IFRS 9 ECL provisioning
- Replies: 5
- Views: 1665
Flow rate calculations for IFRS 9 ECL provisioning
Hi All, Let's say we have a receivable of $100 million in the 0-90 days age bucket as at the reporting date. Post reporting date, we have collected $60 million, so now only $40 million is outstanding. When we calculate ECL provision under IFRS 9 using the flow-rate approach, let's say we get a 5% pr...
- 15 Dec 2022, 08:55
- Forum: IFRS-related topics
- Topic: Trust Accounts
- Replies: 2
- Views: 1636
Re: Trust Accounts
Thanks, will take a look at related SORPs.
- 14 Dec 2022, 07:56
- Forum: IFRS-related topics
- Topic: Trust Accounts
- Replies: 2
- Views: 1636
Trust Accounts
Dear All, Appreciate your views on the following question: A Trust holds some investments in quoted debt/equity funds (all Level1 valuation) in favour of the beneficiaries of the Trust. When the Settlor of the Trust contributes some money or some non-monetary assets to the Trust, would such contribu...