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One of the things I always used to tell young auditors was when you have a transaction that seems difficult to account for you have to first tease out the economics. Why is this being done. When you had a transaction that the more you looked at it the less sense it made, almost invariably it was som...

@JRSB (I am assuming you are London based or nearby, apologies if this is a wrong assumption) when @Marek is next in London, we can grab a beverage of choice and I will tell you all about OCI. Including the time one of the Board Members had coffee mugs produced for all the other Board Members that r...

I agree with you Marek, I think the logic is flawed in the example provided. Almost every loan is conditional in some sense, most become immediately due if, for example, you miss a payment. But I think this is the reason the IFRS changed the language, not because they wanted to change the outcome, b...

I should also add that just because the Basis of Conclusions says "One of the primary reasons is that recycling would create the need to assess equity investments for impairment" does not mean this was one of the primary reasons, it may just be a convenient rationale, that provides support...

Unfortunately the IFRS meeting records weren't as comprehensive back in 2009 when this matter was discussed, so I can't get a record of the actual Board discussion (though it may exist on audio tape but I am not that enthused to go back and review). There is a specific paper addressing OCI and recyc...

The wording is unfortunately a little ambiguous in paragraph 69 which makes this potentially confusing. Effectively the first test is, is the liability current. A liability is current if it is part of your operating cycle (paragraph 70) no matter how long you have to pay it, or if you have to pay it...

A number of the big four have put out quite good guides specific to telecommunications. One that immediately comes to mind is this one by pwc: https://www.pwc.com/gx/en/audit-service ... ations.pdf

May be worth a read.

That about sums it up. Best you can do is drag out finalisation and hope for endorsement sooner rather than later.

EFRAG expects endorsement in Q3/Q4 of this year. I assume it will be retroactive back to 01/06/2020 in line with IFRS effective date?

http://www.efrag.org/Assets/Download?as ... %25202.pdf

To be fair IAS 32 Para 37 says that "the costs of an equity transaction that is abandoned are recognised as an expense" so no it would not still be in equity. But that implies to me otherwise, if not abandoned but successful, they would be recognised as a contra-equity (by application of t...

Personally that feels like a very strict reading of incremental. I would apply the "but for test". But for the intention to raise the capital would we have incurred the cost. In this case I believe the answer is no. So the entire amount is accrued as share issue costs (contra-equity), in t...

Despite what the standard says: "When measuring ECL, an entity need not necessarily identify every possible scenario. However, it shall consider the risk of probability that a credit loss occurs by reflecting the possibility that a credit loss occurs and the possibility that no credit loss occu...

Cool. I was over thinking it.

I fear I am being thick. You mean beyond the final sentence of what is in IAS21.41?

And don't forget IAS 8 Para 10: In the absence of an IFRS that specifically applies to a transaction, other event or condition, management shall use its judgement in developing and applying an accounting policy that results in information that is: 1. relevant to the economic decision‑making needs of...

According to the original Agenda Paper in March 2020: "Many respondents say the fact pattern is common in the jurisdictions identified by the submitter (ie Estonia, Latvia, Georgia and North Macedonia). One respondent also says the fact pattern is common in Israel, and another says similar fact...

@JRSB Pity those of us who had to write them.

That's how I would view it, you have not been recording depreciation, you have been writing the asset off for tax purposes.

Paragraph 35.9c of the IFRs for SMEs is generally seen to have the same meaning of Paragraph 14 of IFRS 1 (just in a simplified way). That is that you don't change estimates. However there is an override if they were clearly in error (paragraph 35.14 of the IFRS for SMEs). (Which I think is what peo...

It's a bit out of date now, I would use with caution.

Fun fact: IAS 20 is considered to be the oldest standard we still have in IFRS. The one we use today was effectively issued in April 1983 by the IASC, adopted unchanged by the IASB in 2001, and has only had minor consequential amendments based on more recently issued standards. (This point was also ...

I came from an environment where share based payments are very common. A very basic test we always used to apply was "Okay you say this is arms' length, can I, as an independent person outside the company, buy shares on the same terms for the same price?" The answer was usually, "Abso...

This is a more recent document you might want to conisder

https://www.pwc.com/gx/en/communication ... ipment.pdf

Court cases and IAS 10 are surprisingly divisive. Despite IAS 10 Para 9 (a) being quite emphatic. I think there is prima facie strong evidence that the court case confirms that at balance date there was a liability. The obligating event was the malfeasance. 9 (a) the settlement after the reporting p...

Assuming it is a simple liability based on simple description it is a financial instrument, so IFRS 9 measurement applies, fair value and amortised cost approach. However, entities often measure non-interest bearing short-term payables at the invoice amount rather than fair value on the basis that a...

Very quick thoughts A key part of the definition of a financial instrument is that it is a contract . So for your first 2 Interest payable is probably a component of a contract that is a financial instrument. Value added tax and employment income tax payable to the government are statutory, not cont...

@pub_acco, that is the joy of a principle based accounting system. There are many "gaps" in the standards, but that is because they fall within the broader ambit of the conceptual framework. If you are interested there is a discussion from Board Member Gary Kabureck Well-written, principle...

IFRS 9 Para 2.1 (g) excludes (most) loan commitments from IFRS 9. The Basis for conclusions (BCZ2.2 - BC2.8) goes into detail about why (its a simplification because otherwise it would be a derivative financial instrument) and discuss the exclusions at length (anything that isn't a vanilla loan comm...

The short answer is the general view is that when the fee paid by the borrower is more in the nature of a facility fee such that the amounts and timing of the draw down and the repayment of the borrowing are at the discretion of the borrower (an overdraft fee), it is not appropriate to recognise the...

A friend of mine has been asking people to recommend one book she should read during this "downtime". I think it is a nice approach, there are always lots of books you could recommend, but being asked to distil it down to one book only has a way of focusing your thinking. Me, I recommended...