Search found 1075 matches

by Marek Muc
28 Nov 2019, 12:55
Forum: IFRS-related topics
Topic: Sole Proprietorship business
Replies: 10
Views: 234

Re: Sole Proprietorship business

Were there any boundaries between the owner and its business under previous local GAAP? You could use the same approach for IFRS conversion
by Marek Muc
28 Nov 2019, 12:53
Forum: IFRS-related topics
Topic: Cost or decreased revenue?
Replies: 5
Views: 152

Re: Cost or decreased revenue?

Wow, I would like to take out such a loan! :) The loan should be recognised at fair value, so you will recognise an up-front expense because of the below market interest rate and additional payment to a customer. So all of these cash flows should be discounted to recognition date and result in a day...
by Marek Muc
27 Nov 2019, 15:56
Forum: IFRS-related topics
Topic: Sole Proprietorship business
Replies: 10
Views: 234

Re: Sole Proprietorship business

don't expect a definitive answer! :)
by Marek Muc
27 Nov 2019, 11:24
Forum: IFRS-related topics
Topic: Sole Proprietorship business
Replies: 10
Views: 234

Re: Sole Proprietorship business

Hi, this is a more general question: how do you set the boundaries between the owner and its private estate and the reporting entity? I think you need to think it through, come up with a clear answer and then apply it to all assets and liabilities. It does not matter whether this is a real estate or...
by Marek Muc
27 Nov 2019, 11:04
Forum: IFRS-related topics
Topic: IFRS- 15: Significant Financing Component
Replies: 1
Views: 68

Re: IFRS- 15: Significant Financing Component

I would use your incremental borrowing rate (see Example 29 to IFRS 15)
by Marek Muc
21 Nov 2019, 16:55
Forum: IFRS-related topics
Topic: IAS 38 Intangible Assets
Replies: 3
Views: 109

Re: IAS 38 Intangible Assets

"income stream" or employees are not intangible assets to be recognised under IAS 38 ;) so we should talk only about broker list / access - I doubt that this is an intangible asset with indefinite useful life, but I still don't know any details to give my definitive opinion How does this broker list...
by Marek Muc
21 Nov 2019, 16:52
Forum: IFRS-related topics
Topic: IFRS 16 - VAT
Replies: 2
Views: 1705

Re: IFRS 16 - VAT

It so happened that I was at an IFRS conference today (organised by EY), and this question was discussed there. The conclusion was that non-recoverable VAT should be excluded from lease accounting as VAT payments are not made to lessor in exchange for the right to use an underlying asset. Instead, t...
by Marek Muc
21 Nov 2019, 08:57
Forum: IFRS-related topics
Topic: IAS 38 Intangible Assets
Replies: 3
Views: 109

Re: IAS 38 Intangible Assets

Unfortunately this is not enough to conclude that their useful life is indefinite. See paragraphs 90-96 of IAS 38.

What are these assets? Brand? Customer base?
by Marek Muc
19 Nov 2019, 09:56
Forum: IFRS-related topics
Topic: IFRS 1 remeasurment adjustments
Replies: 2
Views: 90

Re: IFRS 1 remeasurment adjustments

Yes, it is allowed, but why would you do that? After a few years, when transition to IFRS will be a distant past, such a category in equity will be confusing. I’d include IFRS 1 adjustments in retained earnings.
by Marek Muc
13 Nov 2019, 12:09
Forum: IFRS-related topics
Topic: IFRS 1 Deemed Cost
Replies: 6
Views: 305

Re: IFRS 1 Deemed Cost

You do the valuation now, but of course it is done as at the transition date. If it concerns real estate, for example, you need to base the valuation on real estate prices as at the transition date
by Marek Muc
13 Nov 2019, 10:23
Forum: IFRS-related topics
Topic: IFRS 1 Deemed Cost
Replies: 6
Views: 305

Re: IFRS 1 Deemed Cost

Is there a possibility to perform the revaluation now and work back to the date of transition? sure, you can do the valuation now Or where the entity don't have the GAAP revaluation at transition date does it mean that it can not use the deemed cost option? you can also use 'cost or depreciated cos...
by Marek Muc
13 Nov 2019, 10:20
Forum: IFRS-related topics
Topic: IFRS 16 - sublease - remeasurements?
Replies: 2
Views: 136

Re: IFRS 16 - sublease - remeasurements?

Frankly speaking – I don’t know :) Lessee accounting in such cases is covered in IFRS 16 (adjustment to lease liability and RoU), but if the RoU was already derecognised… In terms of lessor accounting – we can’t say that this is a lease modification, so I don’t know if the net investment in the leas...
by Marek Muc
12 Nov 2019, 12:28
Forum: After hours
Topic: All IFRS
Replies: 2
Views: 256

Re: All IFRS

I guess you have a pretty good understanding of accounting in general, so you can use our knowledge base to learn more about IFRS. Just choose a topic, find a corresponding IFRS and off you go :)

https://ifrscommunity.com/knowledge-base/
by Marek Muc
12 Nov 2019, 12:21
Forum: After hours
Topic: Salutation
Replies: 1
Views: 113

Re: Salutation

Hi and welcome :)
by Marek Muc
12 Nov 2019, 12:20
Forum: IFRS-related topics
Topic: IFRS 1 Deemed Cost
Replies: 6
Views: 305

Re: IFRS 1 Deemed Cost

Hi, IFRS 1 allows previous GAAP revaluation, see IFRS1.D6, IG8 , BC46-47
by Marek Muc
12 Nov 2019, 12:04
Forum: IFRS-related topics
Topic: Capital exp or revenue exp
Replies: 2
Views: 104

Re: Capital exp or revenue exp

Hi, a replacement of an old item with a new one of the same quality etc. can also be treated as a capital expenditure provided that the previous item is derecognised – see IAS 16.13
by Marek Muc
09 Nov 2019, 08:56
Forum: General accounting and financial reporting discussion
Topic: Equity in sole proprietorship entity
Replies: 6
Views: 293

Re: Equity in sole proprietorship entity

Ok so if share capital is defined in the commercial code , then you shouldn't have any issues with equity under IFRS right? Share capital , other contributions , retained earnings and so on
by Marek Muc
08 Nov 2019, 16:19
Forum: General accounting and financial reporting discussion
Topic: Equity in sole proprietorship entity
Replies: 6
Views: 293

Re: Equity in sole proprietorship entity

Tough one, probably more of a legal analysis. I'm shocked that this kind of entity is required to report under IFRS. Is there any defined equity in commercial code? If not, the equity may be shown as an item corresponding to transactions with owner in his capacity as owner. Eg. When he contributes a...
by Marek Muc
08 Nov 2019, 14:43
Forum: General accounting and financial reporting discussion
Topic: Equity in sole proprietorship entity
Replies: 6
Views: 293

Re: Equity in sole proprietorship entity

Hi , is this even a separate legal entity ? Does it produce financial statements?
by Marek Muc
08 Nov 2019, 13:29
Forum: IFRS-related topics
Topic: IFRS 16
Replies: 1
Views: 104

Re: IFRS 16

Hi, you can take the excel templates available in our knowledge base and adjust them to your needs
by Marek Muc
06 Nov 2019, 12:35
Forum: IFRS-related topics
Topic: Difference between hotel owner and hotel operator accounting
Replies: 4
Views: 142

Re: Difference between hotel owner and hotel operator accounting

OK, so such a reserve should not exist under IFRS :)
by Marek Muc
06 Nov 2019, 10:31
Forum: IFRS-related topics
Topic: Difference between hotel owner and hotel operator accounting
Replies: 4
Views: 142

Re: Difference between hotel owner and hotel operator accounting

What is this "Furniture, Fixture and Equipment Reserve"? Is it a part of equity? it sounds suspicious:)

who pays for the furniture, decides which one to buy and when to replace it?
by Marek Muc
06 Nov 2019, 10:24
Forum: IFRS-related topics
Topic: Precious Asset
Replies: 1
Views: 54

Re: Precious Asset

Is this university reporting under IFRS?:)

How will these meteorites contribute to economic benefits of this university?
by Marek Muc
05 Nov 2019, 09:57
Forum: IFRS-related topics
Topic: How to derecognise prepayment and rental expense accounts in the P/L under IFRS 16
Replies: 1
Views: 90

Re: How to derecognise prepayment and rental expense accounts in the P/L under IFRS 16

Hi, yes you need to reverse P/L entries recognised under IAS 17 in 2019.

Prepayment also needs to be accounted for under IFRS 16. If you prepaid for periods after 1/1/2019 then this amount is added to the RoU asset as at 1/1/2019.
by Marek Muc
31 Oct 2019, 13:59
Forum: IFRS-related topics
Topic: IFRS 16 perpetual lease
Replies: 8
Views: 499

Re: IFRS 16 perpetual lease

Re. Discount rate:
https://ifrscommunity.com/knowledge-bas ... count-rate

Are you adopting IFRS 16 with full retrospective or modified retrospective method?
by Marek Muc
30 Oct 2019, 17:55
Forum: IFRS-related topics
Topic: IFRS 16 perpetual lease
Replies: 8
Views: 499

Re: IFRS 16 perpetual lease

yes, the higher the rate the more front-loaded the total expense

13% seems high, what country/functional currency are we talking about?
by Marek Muc
29 Oct 2019, 15:20
Forum: IFRS-related topics
Topic: IFRS 9 Embedded derivatives
Replies: 6
Views: 179

Re: IFRS 9 Embedded derivatives

I believe this contract contains an embedded derivative
Why? Because of the foreign currency?
by Marek Muc
29 Oct 2019, 13:13
Forum: IFRS-related topics
Topic: IFRS 16 perpetual lease
Replies: 8
Views: 499

Re: IFRS 16 perpetual lease

No, just take this increase into account when estimating future cash outflows
by Marek Muc
28 Oct 2019, 17:02
Forum: IFRS-related topics
Topic: IFRS 16 perpetual lease
Replies: 8
Views: 499

Re: IFRS 16 perpetual lease

Hi, it seems that it is a lease to be recognised under IFRS 16 :) If the period beyond 50 years is covered by renewal options, you probably are not reasonably certain to exercise them at this point (given the time horizon). So, start with a 50-year period an excel template is available in the exampl...