Search found 3296 matches
- 13 Mar 2024, 18:41
- Forum: IFRS-related topics
- Topic: IAS 38 - Intangible Assets
- Replies: 3
- Views: 380
Re: IAS 38 - Intangible Assets
It appears to be a lease, and you have the option to apply either IAS 38 or IFRS 16, as outlined in IFRS 16.4 (most entities opt for IAS 38). For a licence spanning five years, you should recognise a liability and related intangible asset covering the entire period, taking into account that these fu...
- 13 Mar 2024, 18:33
- Forum: IFRS-related topics
- Topic: Retail CGU's
- Replies: 4
- Views: 461
Re: Retail CGU's
Yes, geographical. Take, for instance, a Tesco store in London: its revenue is independent from the cash inflows of another store, say, in Manchester.
Could you please share the most relevant disclosures you've come across?
Could you please share the most relevant disclosures you've come across?
- 13 Mar 2024, 18:29
- Forum: General accounting and financial reporting discussion
- Topic: Companies acts consolidation exemption and IFRS 10 exemptions
- Replies: 15
- Views: 713
Re: Companies acts consolidation exemption and IFRS 10 exemptions
I've moved this topic to 'General accounting and financial reporting discussion'. Please don't post local law questions under 'IFRS-related topics', thanks!
- 13 Mar 2024, 18:28
- Forum: IFRS-related topics
- Topic: IFRS 16 & IFRS 15 for Interconnected purchase & SALT
- Replies: 3
- Views: 395
Re: IFRS 16 & IFRS 15 for Interconnected purchase & SALT
I'm not sure what kind of adjustment you have in mind, can you clarify a bit more?
- 12 Mar 2024, 18:11
- Forum: IFRS-related topics
- Topic: Retail CGU's
- Replies: 4
- Views: 461
Re: Retail CGU's
Retail stores typically have different customer bases, so in principle they should be treated as separate CGUs due to independent cash *inflows*. However, companies often consolidate CGUs, as tracking hundreds of small ones is practically challenging. You could look at the financial statements of pu...
- 12 Mar 2024, 18:04
- Forum: IFRS-related topics
- Topic: IFRS 16 & IFRS 15 for Interconnected purchase & SALT
- Replies: 3
- Views: 395
Re: IFRS 16 & IFRS 15 for Interconnected purchase & SALT
A similar scenario is discussed in IFRS 16.B46-47. To me, it seems possible to avoid sale and leaseback accounting if the initial contract with lessor 'A' is made just before exercising the purchase option and entering into the SALT with lessor B.
- 12 Mar 2024, 17:56
- Forum: IFRS-related topics
- Topic: How to distinguish an entity preparing accounts under IFRS 10 para 27-33 or IAS 27 fair value option
- Replies: 5
- Views: 442
- 12 Mar 2024, 17:54
- Forum: IFRS-related topics
- Topic: Cash pooling
- Replies: 10
- Views: 335
Re: Cash pooling
Orange's Polish subsidiary classifies such funds as cash equivalents:
https://www.orange-ir.pl/wp-content/upl ... df#page=48
https://www.orange-ir.pl/wp-content/upl ... df#page=48
- 12 Mar 2024, 17:50
- Forum: IFRS-related topics
- Topic: Time deposits
- Replies: 5
- Views: 513
Re: Time deposits
When designing the layout of SoFP, consider what would be most helpful while satisfying the minimum requirements in IAS 1.54. For instance, you can present the following line items:
- Cash & cash equivalents
- Term deposits
- Trade receivables
- Bonds
- Other financial assets
- Cash & cash equivalents
- Term deposits
- Trade receivables
- Bonds
- Other financial assets
- 12 Mar 2024, 17:43
- Forum: IFRS-related topics
- Topic: How to distinguish an entity preparing accounts under IFRS 10 para 27-33 or IAS 27 fair value option
- Replies: 5
- Views: 442
Re: How to distinguish an entity preparing accounts under IFRS 10 para 27-33 or IAS 27 fair value option
See IAS 27.8A :) An investment entity that is required, throughout the current period and all comparative periods presented, to apply the exception to consolidation for all of its subsidiaries in accordance with paragraph 31 of IFRS 10 presents separate financial statements as its only financial sta...
- 12 Mar 2024, 17:41
- Forum: IFRS-related topics
- Topic: IAS 40 Cost model with annual impairment
- Replies: 3
- Views: 479
Re: IAS 40 Cost model with annual impairment
Their approach is correct. Read more about impairment at https://ifrscommunity.com/knowledge-bas ... al-assets/
- 07 Mar 2024, 18:33
- Forum: IFRS-related topics
- Topic: IFRS 16 for underdeveloped land
- Replies: 4
- Views: 458
Re: IFRS 16 for underdeveloped land
I'm not familiar with arrangements like these. Based on your description, it seems that straight-line P/L recognition for non-refundable lease payments would be the best approach. Ultimately, it's the responsibility of the lessee to utilise the land efficiently. Considering the development potential...
- 07 Mar 2024, 17:44
- Forum: IFRS-related topics
- Topic: IAS 24 Related Party Disclosures
- Replies: 2
- Views: 423
Re: IAS 24 Related Party Disclosures
The list provided in IAS 24.9 is not exhaustive, and an entity may identify, for example, a director’s brother as a related party.
- 07 Mar 2024, 17:41
- Forum: IFRS-related topics
- Topic: IAS 40 Land and buildings
- Replies: 5
- Views: 556
- 07 Mar 2024, 17:38
- Forum: IFRS-related topics
- Topic: IFRS 16 for underdeveloped land
- Replies: 4
- Views: 458
Re: IFRS 16 for underdeveloped land
Please provide a detailed explanation of the terms of this arrangement, they aren't clear to me.
- 07 Mar 2024, 17:12
- Forum: IFRS-related topics
- Topic: IFRS 16 Variable EIR
- Replies: 3
- Views: 434
Re: IFRS 16 Variable EIR
These are variable lease payments and you'll need to reassess the lease liability at reach date the rate resets: https://ifrscommunity.com/knowledge-base/ifrs-16-recognition-and-measurement-of-leases/#variable-lease-payments https://ifrscommunity.com/knowledge-base/ifrs-16-recognition-and-measuremen...
- 07 Mar 2024, 17:10
- Forum: IFRS-related topics
- Topic: Income Provision for Trade Payables
- Replies: 2
- Views: 396
Re: Income Provision for Trade Payables
The entry you proposed seems odd! The statute of limitations, as per your local law, may soon apply. Once it does, the right to legal action for debt recovery expires and you'll be able to derecognise the liability and recognise a gain in P/L. BTW, why the creditors aren't actively seeking payment?
- 05 Mar 2024, 15:39
- Forum: IFRS-related topics
- Topic: What constitutes "control" before goods are sold
- Replies: 6
- Views: 3734
Re: What constitutes "control" before goods are sold
Please start a new topic describing the situation you're dealing with.
- 05 Mar 2024, 15:38
- Forum: IFRS-related topics
- Topic: Fair Value of Investment Property
- Replies: 6
- Views: 546
Re: Fair Value of Investment Property
Always consider the 'highest and best use' regardless of the valuation method. Also, remember that for assets valued at fair value, there are no impairment losses, only changes in fair value. If two valuation techniques yield significantly different results, you need to recalibrate one of them. Sinc...
- 01 Mar 2024, 17:03
- Forum: IFRS-related topics
- Topic: Fair Value of Investment Property
- Replies: 6
- Views: 546
Re: Fair Value of Investment Property
In principle, the valuation technique you select should yield the same fair value. If the income approach yields much higher fair value compared to the market approach, it means that the necessary infrastructure investments and related risks might not have been adequately accounted for in the income...
- 01 Mar 2024, 16:15
- Forum: IFRS-related topics
- Topic: Fair Value of Investment Property
- Replies: 6
- Views: 546
Re: Fair Value of Investment Property
Fair value only reflects market conditions, meaning your company's financial issues shouldn't affect land valuation. Unless these issues stem directly from the land, like challenges in securing building permits etc. In such cases, these challenges should be reflected in both income and market valuat...
- 29 Feb 2024, 16:59
- Forum: IFRS-related topics
- Topic: Contra revenue vs expense
- Replies: 13
- Views: 1035
Re: Contra revenue vs expense
Nothing specific really. I'd say that, in IFRS 15 terms, you need to determine whether your company acts as an agent between the stationery seller and your client, by applying this guidance: https://ifrscommunity.com/knowledge-bas ... ss-vs-net/
- 29 Feb 2024, 16:56
- Forum: IFRS-related topics
- Topic: IAS 16 - PPE transfer to Inventory
- Replies: 7
- Views: 639
Re: IAS 16 - PPE transfer to Inventory
I see, so some scrap parts are being repurposed. This isn't covered by IFRS, and I'd suggest estimating the proportion of these rods in the total carrying amount of PP&E, and then reclassifying this amount to inventory.
- 29 Feb 2024, 16:53
- Forum: General accounting and financial reporting discussion
- Topic: Depreciation of Diagnostic Laboratory Equipment
- Replies: 8
- Views: 704
Re: Depreciation of Diagnostic Laboratory Equipment
Tax depreciation rates differ from IFRS depreciation rates in their purpose, so don't depend heavily on tax rates. I doubt that this specific asset class has been analysed in terms of accounting depreciation rates. But you need to estimate an entity-specific useful life anyway. For example, a luxury...
- 29 Feb 2024, 10:35
- Forum: General accounting and financial reporting discussion
- Topic: Depreciation of Diagnostic Laboratory Equipment
- Replies: 8
- Views: 704
Re: Depreciation of Diagnostic Laboratory Equipment
I've moved this topic to 'General accounting and financial reporting discussion'. Please don't post general questions under 'IFRS-related topics', thanks!
- 28 Feb 2024, 19:43
- Forum: IFRS-related topics
- Topic: Client Money Question
- Replies: 3
- Views: 442
Re: Client Money Question
I'm reconsidering my position Given that money is fungible, I agree with DJP's view. You should recognise these funds as cash for a day. The accounting would likely be DR Cash / CR Liabilities upon receipt, followed by DR Liabilities / CR Cash when routing them to client accounts.
- 28 Feb 2024, 19:32
- Forum: IFRS-related topics
- Topic: Contra revenue vs expense
- Replies: 13
- Views: 1035
Re: Contra revenue vs expense
No, it's simply an expense incurred in providing the service.
- 28 Feb 2024, 19:30
- Forum: IFRS-related topics
- Topic: Client Money Question
- Replies: 3
- Views: 442
Re: Client Money Question
If the use of these funds is contractually predetermined and they are transferred to client accounts within a day, it seems there's no control or benefit for the corporation.
- 28 Feb 2024, 19:11
- Forum: IFRS-related topics
- Topic: IAS 16 - PPE transfer to Inventory
- Replies: 7
- Views: 639
Re: IAS 16 - PPE transfer to Inventory
Could you clarify what is meant by 'change in nature of use'? Classifying it as inventory may not be accurate. It could be more appropriate to consider it as an asset held for sale as per IFRS 5, or as an investment property in line with IAS 40.
- 28 Feb 2024, 19:08
- Forum: IFRS-related topics
- Topic: Direct equity investment - transaction price & fair value
- Replies: 10
- Views: 829
Re: Direct equity investment - transaction price & fair value
If AIM is considered an active market, then IFRS 13.80 applies, so you wouldn't be able to use Level 2/3 inputs.