Search found 334 matches

by JRSB
20 Jun 2020, 00:02
Forum: IFRS-related topics
Topic: IFRS 9-Effective interest method
Replies: 15
Views: 160

Re: IFRS 9-Effective interest method

Ok yes I will try and find more... You'll remember I was looking in to OCI a little, as there are gaps in my understanding of the objectives here sometimes. We'll see!
by JRSB
19 Jun 2020, 23:00
Forum: IFRS-related topics
Topic: IFRS 9-Effective interest method
Replies: 15
Views: 160

Re: IFRS 9-Effective interest method

Marek, do you happen to know the rationale behind the FVOCI equity/debt different treatments regarding recycling, to save dipping into basis for conclusions?
by JRSB
19 Jun 2020, 21:50
Forum: IFRS-related topics
Topic: IFRS 9-Effective interest method
Replies: 15
Views: 160

Re: IFRS 9-Effective interest method

phew, glad you said that!
by JRSB
19 Jun 2020, 20:16
Forum: IFRS-related topics
Topic: IFRS 9-Effective interest method
Replies: 15
Views: 160

Re: IFRS 9-Effective interest method

That page says "As mentioned on the classification page, FVOCI category can be used for debt investments only."

Is that specifically referring to the "FVOCI with recycling" category rather than FVOCI as a whole?
by JRSB
17 Jun 2020, 16:08
Forum: IFRS-related topics
Topic: Loan to Equity
Replies: 7
Views: 85

Re: Loan to Equity

I've certainly seen Big4 guidance on IFRS 9 about this grey area for informal loans, and some conclude that they might be partially or fully capital contributions in substance. Ie is it intended that it will ever be repaid? Presumably there are no contractual cash flows etc.
by JRSB
17 Jun 2020, 15:42
Forum: IFRS-related topics
Topic: IAS 12 Allocation of current and deferred tax
Replies: 4
Views: 31

Re: IAS 12 Allocation of current and deferred tax

Can I ask about the particular circumstances that led you to identify the holding as FVOCI?
by JRSB
16 Jun 2020, 12:32
Forum: IFRS-related topics
Topic: Transfer of assets to a wholly owned subsidiary
Replies: 14
Views: 85

Re: Transfer of assets to a wholly owned subsidiary

I agree, based on what you've said, and of course no impact at all on group.

Which audit firm is getting excited about it? I assume Big 4.... :D
by JRSB
16 Jun 2020, 11:49
Forum: IFRS-related topics
Topic: Transfer of assets to a wholly owned subsidiary
Replies: 14
Views: 85

Re: Transfer of assets to a wholly owned subsidiary

Sounds like the assets may be investment property, so possibly at FV anyway. Need more info!
by JRSB
16 Jun 2020, 11:42
Forum: IFRS-related topics
Topic: Transfer of assets to a wholly owned subsidiary
Replies: 14
Views: 85

Re: Transfer of assets to a wholly owned subsidiary

I assume the transfer was done at it's carrying value and shown as a capital contribution, ie DR investment in subsidiary CR asset?
by JRSB
16 Jun 2020, 11:09
Forum: IFRS-related topics
Topic: Transfer of assets to a wholly owned subsidiary
Replies: 14
Views: 85

Re: Transfer of assets to a wholly owned subsidiary

Are those assets the substantially the whole business of the group, or just incidental? Not sure how it would meet the definition of held for sale because evidently they weren't! Eg for this to apply the asset must be 'actively marketed'. Were they sold to the subsidiary at market price, or transfer...
by JRSB
16 Jun 2020, 11:05
Forum: IFRS-related topics
Topic: IAS 2 inventories - Letter of Credit
Replies: 11
Views: 101

Re: IAS 2 inventories - Letter of Credit

It seems you should capitalise borrowing costs into inventories, but not if they are produced over a short period of time.

But not required to where produced in large quantities on a repetitive basis.

IAS 23, 4 and 7.
by JRSB
15 Jun 2020, 20:29
Forum: IFRS-related topics
Topic: Change in depreciation policy-IFRS for SMEs adoption
Replies: 7
Views: 61

Re: Change in depreciation policy-IFRS for SMEs adoption

wow - congratulations to any SME accountant who studies all 35 modules!
by JRSB
15 Jun 2020, 11:29
Forum: IFRS-related topics
Topic: Consolidation and Equity accounting
Replies: 5
Views: 30

Re: Consolidation and Equity accounting

Not that I can think of. Companies generally apply IFRS or FRS 102. FRS 102 is adapted from IFRS for SMEs. But there's also FRS 101 (but that applies IFRS principles) and FRS 105 (for micro entities that don't consolidate anyway).
by JRSB
15 Jun 2020, 11:16
Forum: IFRS-related topics
Topic: Consolidation and Equity accounting
Replies: 5
Views: 30

Re: Consolidation and Equity accounting

I read the other day that UK company law permits a group to exclude subsidiaries if there is undue difficulty or delay in obtaining the information.

But it's not permitted under IFRS or UK GAAP, so in practice it's impossible to apply!
by JRSB
13 Jun 2020, 19:06
Forum: IFRS-related topics
Topic: IAS 2 inventories - Letter of Credit
Replies: 11
Views: 101

Re: IAS 2 inventories - Letter of Credit

I would agree that it's not clear cut. I've certainly seen some quite specific purchases that can only be done on a LoC basis.
by JRSB
12 Jun 2020, 16:25
Forum: IFRS-related topics
Topic: IAS 2 inventories - Letter of Credit
Replies: 11
Views: 101

Re: IAS 2 inventories

Para 11 says all directly attributable costs so if that facility was obtained solely to acquire inventory then I'd say so.

It wouldn't seem to fall into para 16.
by JRSB
12 Jun 2020, 10:13
Forum: After hours
Topic: article on IFRIC23
Replies: 15
Views: 266

Re: article on IFRIC23

oh - not sure what the article we be then - the IFRIC is only 3 pages...
by JRSB
12 Jun 2020, 09:56
Forum: IFRS-related topics
Topic: IFRS 16 - Leases (Parent- Subsidiary) recognition and measurement.
Replies: 7
Views: 130

Re: IFRS 16 - Leases (Parent- Subsidiary) recognition and measurement.

Are AASBs exact cut-and-paste copies of IFRSs?

Why don't they just adopt IFRS? :mrgreen:
by JRSB
12 Jun 2020, 09:52
Forum: IFRS-related topics
Topic: Common control transactions
Replies: 24
Views: 532

Re: Common control transactions

I've encountered the issue twice. In one case the question was about the treatment of subsequent change to the variable consideration (non- business combination scenario). In this case it was credited to P&L. In another scenario the question was whether it was correct to recognise at all, and if it ...
by JRSB
12 Jun 2020, 09:46
Forum: After hours
Topic: article on IFRIC23
Replies: 15
Views: 266

Re: article on IFRIC23

I guess you mean you'd like IFRIC 23 to be reflected in the tax sections of the knowledge base?
by JRSB
11 Jun 2020, 11:21
Forum: IFRS-related topics
Topic: IFRS 16 - Leases (Parent- Subsidiary) recognition and measurement.
Replies: 7
Views: 130

Re: IFRS 16 - Leases (Parent- Subsidiary) recognition and measurement.

In it's own books the parent is a lessor.

From a group perspective, it's just an item of PPE (assuming they own the asset and don't lease themselves?) - yes consol journal as the subsidiary doesn't have a RoU asset/liability at consol level.
by JRSB
10 Jun 2020, 23:38
Forum: IFRS-related topics
Topic: Common control transactions
Replies: 24
Views: 532

Re: Common control transactions

PS I've just read in the IASB February update that the IASB is ready to prepare a discussion paper on business combinations under common control so we may see some interesting insights soon ;) Did we see anything further on this? I'm still waiting to see more regarding variable consideration on acq...
by JRSB
10 Jun 2020, 23:34
Forum: After hours
Topic: Thread tags
Replies: 2
Views: 54

Thread tags

Is it worth having a tag assigned to each thread, that tag being the standard in question? then you can look at all previous threads on that standard (and discover perhaps the query already answered).

KR
by JRSB
10 Jun 2020, 16:53
Forum: IFRS-related topics
Topic: IAS 12 Uncertain tax base
Replies: 2
Views: 34

Re: IAS 12 Uncertain tax base

Oops - missed para 68B:

If the amount the taxation authorities will permit as a deduction in future periods is not known at the end of the period, it shall be estimated, based on information available at the end of the period

KR!
by JRSB
10 Jun 2020, 16:46
Forum: IFRS-related topics
Topic: IAS 12 Uncertain tax base
Replies: 2
Views: 34

IAS 12 Uncertain tax base

In the UK, and leaving certain assumptions aside, let's say a tax deduction is only taken regarding employee share options when they are exercised. The tax deduction is the difference between exercise price and the market value at exercise date. (Ie potentially much smaller than the initial share ba...
by JRSB
10 Jun 2020, 09:47
Forum: IFRS-related topics
Topic: IAS 16 - Initial Cost of PP&E
Replies: 4
Views: 73

Re: IAS 16 - Initial Cost of PP&E

Asset dismantlement, removal and restoration costs BC13 The previous version of IAS 16 provided that in initially measuring an item of property, plant and equipment at its cost, an entity would include the cost of dismantling and removing that item and restoring the site on which it is located to th...
by JRSB
10 Jun 2020, 09:40
Forum: IFRS-related topics
Topic: IAS 16 - Initial Cost of PP&E
Replies: 4
Views: 73

Re: IAS 16 - Initial Cost of PP&E

You may wish to delve in to the 'basis for conclusions' ,but it's the same principle as amortised cost isn't it, spreading the directly attributable costs over the life of the asset, the same as if you had the initial costs as a prepayment. If you've got a cost model that doesn't reflect the value b...
by JRSB
09 Jun 2020, 17:19
Forum: IFRS-related topics
Topic: Change in depreciation policy-IFRS Adoption
Replies: 10
Views: 107

Re: Change in depreciation policy-IFRS Adoption

Every taxpayer in the UK reports for the period 6 April to following 5 April.

For monthly earnings you can use the full month of March and end there.

But if you dispose of an asset on 3 April it falls in that year.

https://www.ebs.ltd.uk/news/why-does-th ... 5th-april/
by JRSB
09 Jun 2020, 17:09
Forum: General accounting and financial reporting discussion
Topic: Deferred tax
Replies: 14
Views: 411

Re: Deferred tax

my post on 1/3 was referring to undistributed profits held in the subsidiary, IAS 12 para 38 (a). I wonder if anyone has ever made an accounting entry for this.... :| Temporary differences arise when the carrying amount of investments in subsidiaries, branches and associates or interests in joint ar...
by JRSB
09 Jun 2020, 14:22
Forum: IFRS-related topics
Topic: IFRS5
Replies: 2
Views: 39

Re: IFRS5

There's quite a lot of judgement in there - you're not in a position to dispute that the sale is 'highly probable?