Search found 234 matches

by exIFRS
09 Dec 2020, 16:50
Forum: IFRS-related topics
Topic: Badwill arising from a transfer of a company within a group?
Replies: 25
Views: 5718

Re: Badwill arising from a transfer of a company within a group?

Interesting discussion, to remove confirmation bias I thought I would use google to get a sense of usage of the terms. To give you a sense of scale of the use of "negative goodwill" and "badwill" here is analysis of usage in texts from 1900 - 2020: Goodwill 2.png The peak for &qu...
by exIFRS
09 Dec 2020, 12:07
Forum: IFRS-related topics
Topic: IFRS-16
Replies: 3
Views: 1319

Re: IFRS-16

It sounds like a very unfortunate situation, and one that would not be expected to happen in many jurisdictions. Therefore I suspect you will struggle to find clear advice in IFRS 16, as it assumes that contracts will be followed, not retrospectively and unilaterally changed. (Funnily enough on a pe...
by exIFRS
08 Dec 2020, 13:26
Forum: IFRS-related topics
Topic: Inventory Sale and repurchase...de-recognition?
Replies: 52
Views: 37314

Re: Inventory Sale and repurchase...de-recognition?

I missed the bit about GT, where did you see that?
by exIFRS
08 Dec 2020, 12:55
Forum: IFRS-related topics
Topic: Inventory Sale and repurchase...de-recognition?
Replies: 52
Views: 37314

Re: Inventory Sale and repurchase...de-recognition?

I have continued to monitor this company. Nothing particularly interesting, but a comment in their latest press release amused me: the Company is in the process of agreeing an on-going collaboration with one of the Big Four[6] that is highly active in the development of International Financial Repor...
by exIFRS
08 Dec 2020, 11:10
Forum: IFRS-related topics
Topic: IAS 37 improvements?
Replies: 6
Views: 1632

Re: IAS 37 improvements?

I think it could be useful investor information, more if it identified outliers, entities that are using significantly higher discount rates that could understate the value of the liability. Like a lot of these things exposure to daylight would force entities to... (how do I put this politely)... pu...
by exIFRS
08 Dec 2020, 10:50
Forum: IFRS-related topics
Topic: IAS 37 improvements?
Replies: 6
Views: 1632

Re: IAS 37 improvements?

I am with you on this one JRSB, I mean the standard has problems, which is why the IASB has added Provisions to the Standard Setting Agenda (https://www.ifrs.org/projects/work-plan/provisions/), but I would have thought where material the Standards already support disclosure. Interestingly the imple...
by exIFRS
07 Dec 2020, 11:37
Forum: IFRS-related topics
Topic: Accounting of equity settled share based payment in consolidation
Replies: 10
Views: 2482

Re: Accounting of equity settled share based payment in consolidation

Just to be clear, in the situation you are considering, the Parent (Shareholder) is rewarding the employees of Subsidiary (investee) by giving them some of its shares (investment) in the Subsidiary, effectively reducing it's investment? This is as opposed to the more common, Parent is awarding its o...
by exIFRS
04 Dec 2020, 09:14
Forum: IFRS-related topics
Topic: Loan Vs Receivables
Replies: 8
Views: 2100

Re: Loan Vs Receivables

I was in the process of writing something similar, but @DJP has put it much better. I agree with their view, this is firstly a legal question. In terms of receivables vs loans, in the good old days it came down to the nature of the agreement. A loan was a formal contract I X lend you Y a set amount ...
by exIFRS
03 Dec 2020, 18:43
Forum: After hours
Topic: 2 years | 1,000 members | 3,000 posts
Replies: 5
Views: 14881

Re: 2 years | 1,000 members | 3,000 posts

Congratulations Marek, that is worth celebrating and you deserve to be proud of what you have built! :P
by exIFRS
03 Dec 2020, 17:28
Forum: General accounting and financial reporting discussion
Topic: Accrual for audit fees
Replies: 24
Views: 17535

Re: Accrual for audit fees

It's auditors all the way down :lol:
by exIFRS
03 Dec 2020, 13:26
Forum: General accounting and financial reporting discussion
Topic: Accrual for audit fees
Replies: 24
Views: 17535

Re: Accrual for audit fees

So KPMG UK produces an annual report that complies with IFRS Standards (who knew right!?!). So this is their policy: The majority of the group’s revenue is derived from contracts where the consideration is based on time and materials. For these contracts the group satisfies performance obligations o...
by exIFRS
03 Dec 2020, 12:54
Forum: IFRS-related topics
Topic: IFRS 15 variable considerations
Replies: 10
Views: 2254

Re: IFRS 15 variable considerations

I agree with Marek, here we have to assume surely that the most likely outcome is they will pay on time. That bias towards being conservative would push us to ignore for now the possibility of late payment I would think.
by exIFRS
03 Dec 2020, 11:45
Forum: IFRS-related topics
Topic: IFRS 15 variable considerations
Replies: 10
Views: 2254

Re: IFRS 15 variable considerations

As you note and Marek points out rather than providing an exemption, IFRS 15 explicitly requires you to take into account penalty clauses (IFRS15.51). The key issue is that constraint on estimating variable consideration, effectively rather than ignoring the risk of penalty you should give it additi...
by exIFRS
01 Dec 2020, 21:13
Forum: IFRS-related topics
Topic: Virtually certain (contingent) asset becomes probable only
Replies: 7
Views: 5121

Re: Virtually certain (contingent) asset becomes probable only

I would say that contractual assets can also be disputed before the court. But the mere fact that we looked into IAS 37 in the first place implies that this is non-contractual, otherwise it wouldn't be in the scope of IAS 37 in the first place, however fiercely disputed between parties. Do you agre...
by exIFRS
01 Dec 2020, 19:02
Forum: General accounting and financial reporting discussion
Topic: Accrual for audit fees
Replies: 24
Views: 17535

Re: Accrual for audit fees

As you note this not really an IFRS question in some ways. I can't find a reference to disclosure of Audit Fees in the current IFRS Standards (please correct me if I am wrong). In the UK and Australia this is a statutory requirement that this information is included in the Financial Reports. The ICA...
by exIFRS
01 Dec 2020, 18:16
Forum: IFRS-related topics
Topic: Virtually certain (contingent) asset becomes probable only
Replies: 7
Views: 5121

Re: Virtually certain (contingent) asset becomes probable only

Interesting. IAS37.33 is pretty clear, when realisation of income becomes virtually certain, the related asset is not a contingent asset and recognition is appropriate. So the IAS37.35 requirements for continual reassessment wouldn't apply. It is presumably an Intangible Asset as opposed to a Financ...
by exIFRS
01 Dec 2020, 14:41
Forum: IFRS-related topics
Topic: Current or non-current loan
Replies: 55
Views: 24358

Re: Current or non-current loan

Well the IFRIC has met. Their conclusion seems to be summarised as "okay the staff are right, that is what the amendment will mean, BUT they are generally "not comfortable with it"". I am pleased that many of the comments raised in this comment thread were raised by members of th...
by exIFRS
01 Dec 2020, 11:28
Forum: General accounting and financial reporting discussion
Topic: Accrual for audit fees
Replies: 24
Views: 17535

Re: Accrual for audit fees

I realise we have moved away for the original question but do we think audit revenue meet the IFRS 15 criteria for recognition overtime, and if so which of the criteria? Performance obligation is satisfied over time if one of the criteria given in IFRS 15.35 is met: The customer simultaneously recei...
by exIFRS
29 Nov 2020, 20:21
Forum: IFRS-related topics
Topic: Financial Instruments with Characteristics of Equity
Replies: 57
Views: 52892

Re: Financial Instruments with Characteristics of Equity

As one final, unhelpful aside, in trying to get to the bottom of this I found this comment in a KPMG review of the current FICE project (emphasis added): "In a change to current IAS 32 requirements, the timing and the amount features would be applied consistently, regardless of whether a contra...
by exIFRS
29 Nov 2020, 19:59
Forum: IFRS-related topics
Topic: Financial Instruments with Characteristics of Equity
Replies: 57
Views: 52892

Re: Financial Instruments with Characteristics of Equity

I apologize I mislead @marea on this one. I agree only A and B relate to puttable instruments I knew that the whole liquidation thing was still niggling the back of my mind. It may also be worth looking at this document too: https://www.grantthornton.global/globalassets/1.-member-firms/global/insigh...
by exIFRS
29 Nov 2020, 09:58
Forum: IFRS-related topics
Topic: Guidance - Invt in Associate - Equity Accounting
Replies: 10
Views: 2425

Re: Guidance - Invt in Associate - Equity Accounting

Joint control is defined at IFRS 11.7 (emphasis added): Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. As you describe it, it would appear tha...
by exIFRS
29 Nov 2020, 09:38
Forum: IFRS-related topics
Topic: Financial Instruments with Characteristics of Equity
Replies: 57
Views: 52892

Re: Financial Instruments with Characteristics of Equity

If the only condition is that the dividend only has to be paid before the ordinary shareholders get a dividend it is deemed to be discretionary. The organization has the discretion of if and when to pay a dividend because it has discretion as to whether or not to pay an ordinary dividend. This is th...
by exIFRS
28 Nov 2020, 23:14
Forum: IFRS-related topics
Topic: Current or non-current loan
Replies: 55
Views: 24358

Re: Current or non-current loan

Oh, it took me ages, but I found a version of the smoke detector example (actually it was smoke filters). It is on page 26 of this document: https://www.ifrs.org/-/media/feature/meetings/2016/october/iasb/conceptual-framework/ap10c-testing-proposed-asset-liability-definitions-illustrative-examples.p...
by exIFRS
28 Nov 2020, 23:04
Forum: IFRS-related topics
Topic: Financial Instruments with Characteristics of Equity
Replies: 57
Views: 52892

Re: Financial Instruments with Characteristics of Equity

PS my previous post was taken from ICAEW (UK's leading accounting professional body) I had come across the same document when looking at this, but it hinges on the dividend being "non-discretionary" which is not necessarily the same as cumulative? https://www.icaew.com/technical/financial...
by exIFRS
28 Nov 2020, 22:35
Forum: IFRS-related topics
Topic: Current or non-current loan
Replies: 55
Views: 24358

Re: Current or non-current loan

I guess we should take heart from the fact the question is going to the IFRIC, as this indicates that there is not a clear answer, otherwise it would not have got as far as an agenda paper. Personally I think it feels wrong to classify as a current liability, this seems to me to misrepresent the und...
by exIFRS
28 Nov 2020, 22:18
Forum: IFRS-related topics
Topic: Financial Instruments with Characteristics of Equity
Replies: 57
Views: 52892

Re: Financial Instruments with Characteristics of Equity

I have a slightly different view I am afraid, but I am concerned I may not fully understand the terms. Based on what I understand I believe the terms of the dividend do not make it a liability. The fact it is cumulative is not important, what is important is can the entity avoid paying it. From what...
by exIFRS
27 Nov 2020, 21:21
Forum: IFRS-related topics
Topic: Financial Instruments with Characteristics of Equity
Replies: 57
Views: 52892

Re: Financial Instruments with Characteristics of Equity

If the company liquidates do the preference share get any cumulative dividend and/or capital return ahead of the ordinary shareholders?
by exIFRS
27 Nov 2020, 17:02
Forum: IFRS-related topics
Topic: Current or non-current loan
Replies: 55
Views: 24358

Re: Current or non-current loan

Entity A takes out a loan on 1 June 20X1. A covenant requires the Entity to keep its working capital ratio above 1.1, but this will be tested on 30 June 20X2 for the first time. It's 31 December 20X1 and the capital ratio stands at 1.05 but the Entity expects it to rise to above 1.1 until 30 June 2...
by exIFRS
27 Nov 2020, 16:34
Forum: IFRS-related topics
Topic: Current or non-current loan
Replies: 55
Views: 24358

Re: Current or non-current loan

I don't share this view. The facts at the reporting date matter, not when the repercussion will happen in the future - this a overarching concept across IFRS, so I don't think this is what IASB had in mind when they drafted this specific requirement. I think you have missed what I am trying to say,...