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If preparing financial statements under IFRS is not a legal requirement as per corporate law governing the entity, you can prepare special purpose financial statements and get those audited. I am no longer in audit profession but the auditors will be able to give a clear opinion (under a different a...

Read that last year and to be honest it didn’t really click with me. I found Mr. Jordan to be too self righteous and over the top with the biblical stuff. The book could have easily been 1/10th its size but he just went on and on and on.

Started David and Goliath by Malcolm Gladwell today.

There is no such thing as investment in a subsidiary in consolidated financial statements. What we have are the net assets of the subsidiary and you would compare that against the tax base of the net assets (which should be reduced by amount of loss or at the very least the tax loss of the subsidiar...

I don't believe this would fall under IFRS 2 as the shares are purchased at fair value by the employee and not granted to them as compensation. From an IFRS perspective this wouldn't even warrant a disclosure but from corporate governance stand point you might need to disclose that (depends on the j...

I just read through the bit about outside temporary differences. I understand the bit about temporary differences arising because of impairment of goodwill and investment in subsidiary (in consolidated and separate financial statements, respectively) but for the consolidated financial statements wou...

What is the commercial rationale behind this transaction from entity A's perspective? Surely, the 10% of fee income would be significantly less than the payout at the end of 20 years (500M EUR/GBP). If the instrument is credit impaired, shouldn't that be the case from entity B's perspective as well ...

I don't really "read" these books, only do that if there is a really good one. My modus operandi is audio books. I have audible subscription and you get one credit per month and listen to audio books whenever I get a chance. Before the lock down, it used to be during my gym workouts, drive...

I aim to finish at least one book every month. Few good ones that I have read over past few months are: The Four: Hidden DNA of Amazon, Apple, Facebook and Google by Scott Galloway Hit Refresh: The Quest to Rediscover Microsoft's Soul and Image a Better Future for Everyone by Satya Nadella Shoe Dog:...

Marek Muc wrote: ↑27 May 2020, 22:37 great story! my experience is that only accountants understand deferred tax, even tax advisors usually know very little, if anything at all

That's because it is simply an accounting adjustment. Has very little to do with tax legislation.

Is entity B going to recognize a loss when it transfers back the bond to entity A for nil consideration? Since you mention that the agreement no longer has the repo clause, does that mean there is a risk that entity B would keep the bond and en-cash the principal and interest at the end of the term?

I am pretty sure you wouldn’t record current value at the best estimate of 10% fee to be paid to A. That would be a contingent consideration.

ifrs scotty wrote: ↑27 May 2020, 13:05 I was thinking more to use market rate interest to calculate the PV

You can use market discount rate as well but in my experience it is always better to use entity specific rate as determining what an appropriate market interest rate is not as easy as it sounds.

In developments, the arrangement has been revised (and perhaps simplified) such that Entity B acquires full ownership and title to the bond, and the only condition is to pay 10% of future profits to Entity A in exchange. Just to be clear, is the entity B acquiring the bond without paying anything? ...

Hi, This is the only area where I lack lots of expertise. Can someone please explain me, if there are any chances of a current tax to become deferred tax asset or a liability? Txs. In layman terms, its the other way around, deferred tax liability and deferred tax asset eventually become current tax...

I have been looking for a place like this for ages. In fact I couldn’t find one earlier so I created my own forum a few years ago (but couldn’t put in the hours so closed it). Anyway, I am a Chartered Accountant (ACA) and a CFA Charter holder. I used to work with PwC once upon a time and now work as...

I am not sure if legal ownership of the bond is of any value here since entity B does not have rights to any future economic benefits / cash flows associated with the financial asset. The way I see it, in substance A still owns the bond. Second, as already raised by Marc, I am not sure how entity B ...

Did you calculate the present value of the loan using company’s cost of debt to determine its present value and unwinding of interest on the loan?