Search found 296 matches

by JRSB
21 Oct 2020, 10:17
Forum: IFRS-related topics
Topic: offsetting receivable and lease liability
Replies: 7
Views: 58

Re: offsetting receivable and lease liability

Will it be settled net, ie will they not pay rent until the receivable it utilised against it?
by JRSB
21 Oct 2020, 10:16
Forum: IFRS-related topics
Topic: Contribution to joint operation
Replies: 20
Views: 151

Re: Contribution to joint operation

IFRS 9 should not be so silent on the matter. The amortisation of the gain would put you at: Day 1 Cr Bank €500,000 Dr Receivable at FV €550,000 Cr Deferred gain €50,000 Day 15 (etc) Dr Deferred gain €25,000 Cr P&L -release of day 1 gain on FV of assets €25,000 Day 30 Dr Bank €550,000 Cr Receivable ...
by JRSB
21 Oct 2020, 09:47
Forum: IFRS-related topics
Topic: Contribution to joint operation
Replies: 20
Views: 151

Re: Contribution to joint operation

That's pretty much it.

(Why do people enter such transactions.. :roll: :roll: :roll: )
by JRSB
20 Oct 2020, 23:18
Forum: IFRS-related topics
Topic: Contribution to joint operation
Replies: 20
Views: 151

Re: Contribution to joint operation

Picking up this case if I may. Suppose the loan was €500,000. As established, recorded at fair value. 1 month later the project generates revenues and repays a contractually-determined €550,000. (Having established not being SPPI). So initial recogniton at FV. But this doesnt equal transaction price...
by JRSB
20 Oct 2020, 10:15
Forum: IFRS-related topics
Topic: IFRS as adopted in the UK?
Replies: 6
Views: 50

Re: IFRS as adopted in the UK?

There's a huge number of caveats, mostly importantly that the parent company then bears a guarantee to creditors which may not be ideal.
by JRSB
20 Oct 2020, 09:44
Forum: IFRS-related topics
Topic: IFRS as adopted in the UK?
Replies: 6
Views: 50

Re: IFRS as adopted in the UK?

Yes in some circumstances you can file the TopCo accounts of a EU parent company.
From periods comm 1/1/21 you can't do that so must prepare and file consol accs at UK level.
Similar situation re exemption from audit via EU parental guarantee.
(Sorry, not an IFRS issue).
by JRSB
19 Oct 2020, 14:39
Forum: IFRS-related topics
Topic: Revaluation of Intangible Assets
Replies: 3
Views: 84

Re: Revaluation of Intangible Assets

Which indice/intangible asset are you thinking of IFRS2020?
by JRSB
19 Oct 2020, 14:38
Forum: IFRS-related topics
Topic: IFRS as adopted in the UK?
Replies: 6
Views: 50

Re: IFRS as adopted in the UK?

I'm quite sure they will align. Some interesting other implications too. Eg UK sub with EU parent company can get audit exemption in certain circumstances. Not for periods starting 1/1/21.
by JRSB
15 Oct 2020, 10:35
Forum: IFRS-related topics
Topic: Electricity contract
Replies: 10
Views: 137

Re: Electricity contract

Have you really committed for 20-years, or an initial 3 years with a potential 20 year period of service?
by JRSB
12 Oct 2020, 14:06
Forum: IFRS-related topics
Topic: IFRS 16 Covid rent concessions
Replies: 20
Views: 213

Re: IFRS 16 Covid rent concessions

Now adopted by the EU...
by JRSB
12 Oct 2020, 09:21
Forum: IFRS-related topics
Topic: Defined Benefit Plan How to treat deferred backfill by employer.
Replies: 7
Views: 63

Re: Defined Benefit Plan How to treat deferred backfill by employer.

IF you're happy it's true then ultimately you'll benefit from the additional contribution, but the fact that they are using the apparently underfunding position to limit further benefits is cheeky - I suppose the question is whether they have complete discretion to not increase payout, or is there s...
by JRSB
11 Oct 2020, 15:36
Forum: IFRS-related topics
Topic: Defined Benefit Plan How to treat deferred backfill by employer.
Replies: 7
Views: 63

Re: Defined Benefit Plan How to treat deferred backfill by employer.

What exactly happened when they 'agreed' or 'promised' as you say? Presumably you don't know precisely what agreements were made or the terms and conditions.
by JRSB
09 Oct 2020, 17:21
Forum: IFRS-related topics
Topic: Loan assignment
Replies: 14
Views: 62

Re: Loan assignment

In the original scenario I think the explanation is that the seller considered it impaired but the buyer just looked at the contractual amount without considering fair value.
by JRSB
09 Oct 2020, 13:38
Forum: IFRS-related topics
Topic: Loan assignment
Replies: 14
Views: 62

Re: Loan assignment

YEs, I suppose it would be that given the circumstances that might be the conclusion of the new buyer (which would explain why the situation arises - it's impaired).
by JRSB
09 Oct 2020, 13:33
Forum: IFRS-related topics
Topic: Loan assignment
Replies: 14
Views: 62

Re: Loan assignment

I suppose the deferred gain would equally be released with a similar result.
by JRSB
09 Oct 2020, 13:24
Forum: IFRS-related topics
Topic: Loan assignment
Replies: 14
Views: 62

Re: Loan assignment

It's a great thought and actually takes it back to the exact same answer as another question I had before, again relating to a transaction where it doesn't appear to be conducted at commercial terms, but with a reason. Tricky! Suppose the underlying assets have €20m value - one might consider that t...
by JRSB
09 Oct 2020, 13:10
Forum: IFRS-related topics
Topic: Loan assignment
Replies: 14
Views: 62

Re: Loan assignment

Again, makes sense. The question clearly is why would they assign the debt for less than face value . But it could be that Entity C had carried it along with an ECL such that in their view it was sold at carrying value. However the buyer doesn't know that, and in the buyer's eyes the debt will be re...
by JRSB
09 Oct 2020, 13:03
Forum: IFRS-related topics
Topic: Loan assignment
Replies: 14
Views: 62

Re: Loan assignment

That's a good idea, even if legally that is not specified like that, but it could show the substance.

However it could turn out the figures are reversed ie, paid €20m but the loan received will be €25m, which makes that approach tricky.
by JRSB
09 Oct 2020, 12:51
Forum: IFRS-related topics
Topic: Loan assignment
Replies: 14
Views: 62

Loan assignment

Entity A acquires Entity B from Entity C for €20m. Immediately before the transaction, Entity B owes €15m to Entity C (its parent company) As part of the agreement, the debt remains in Entity B but it now owes it to Entity A (new parent) rather than C (old parent). Standalone financial statements of...
by JRSB
08 Oct 2020, 12:32
Forum: IFRS-related topics
Topic: What inventories are valued at fair value?
Replies: 6
Views: 90

Re: What inventories are valued at fair value?

Inventories acquired in a business combination?
by JRSB
06 Oct 2020, 14:17
Forum: IFRS-related topics
Topic: IFRS 9 Embedded derivatives
Replies: 6
Views: 178

Re: IFRS 9 Embedded derivatives

Wow, bifurcate :o
by JRSB
04 Oct 2020, 23:22
Forum: IFRS-related topics
Topic: Treatment of unexercised share warrants
Replies: 10
Views: 92

Re: Treatment of unexercised share warrants

We do that by convention whenever I see it.
by JRSB
01 Oct 2020, 13:21
Forum: IFRS-related topics
Topic: IFRS 9 on Cash and Cash equivalents
Replies: 7
Views: 93

Re: IFRS 9 on Cash and Cash equivalents

Well I guess in Latvia it is a must....
by JRSB
01 Oct 2020, 13:20
Forum: IFRS-related topics
Topic: IFRS 15 Contract Liability
Replies: 6
Views: 84

Re: IFRS 15 Contract Liability

Perhaps it is a scenario where the 200 is held on account against future bills?
by JRSB
25 Sep 2020, 19:58
Forum: IFRS-related topics
Topic: Derivative transaction double entries
Replies: 12
Views: 83

Re: Derivative transaction double entries

Wow , you have all these at once! :shock:

One of the points of a derivative is that they have no or low cost/value at inception, and often no cost to enter into, and that the value changes as other underlying things change (FX rates, interest rates) so actually at inception it's easy.
by JRSB
25 Sep 2020, 19:50
Forum: IFRS-related topics
Topic: IFRS 8 Revenue vs. Revenues
Replies: 6
Views: 73

Re: IFRS 8 Revenue vs. Revenues

Actually yes in the UK it's common that someone will say Turnover or Sales.
by JRSB
25 Sep 2020, 09:44
Forum: General accounting and financial reporting discussion
Topic: Difference between start up cost vs leasehold improvement when opening a new shop
Replies: 8
Views: 172

Re: Difference between start up cost vs leasehold improvement when opening a new shop

FRS 102 (UK GAAP) is based on IFRS for SMEs (with amendments felt suitable for the UK market) and for simplicity is only updated once every three years - I am fully expecting the next cycle to bring in leases. I believe US GAAP has made the transition for all reporters already.
by JRSB
24 Sep 2020, 14:38
Forum: IFRS-related topics
Topic: IFRS 8 Revenue vs. Revenues
Replies: 6
Views: 73

Re: IFRS 8 Revenue vs. Revenues

Also non-financial people are more likely to use revenues, eg journalists, easily found an example https://www.businessinnovationmag.co.uk ... 7-million/
by JRSB
24 Sep 2020, 12:13
Forum: IFRS-related topics
Topic: IFRS 8 Revenue vs. Revenues
Replies: 6
Views: 73

Re: IFRS 8 Revenue vs. Revenues

Interchangeable from a language perspective But you would never say "Debit bank credit revenues" … Revenues is probably more common in discussions rather than direct accounting, eg have you seen any financial statements say 'revenues' in P&L? Yes revenues probably hints at the possibility of various...
by JRSB
22 Sep 2020, 14:41
Forum: IFRS-related topics
Topic: IFRS 9 on Cash and Cash equivalents
Replies: 7
Views: 93

Re: IFRS 9 on Cash and Cash equivalents

I'd be interested in the OP's scenario why he expects credit loss on cash. Are bank collapsing in your country?