Search found 328 matches

by pub_acco
31 Jul 2020, 14:10
Forum: IFRS-related topics
Topic: Capitalize unconsumed office supplies?
Replies: 22
Views: 4700

Re: Capitalize unconsumed office supplies?

Technically, we can use a good pen for more than one year but I can hardly imagine a situation we capitalize office supplies under IAS 16 :roll: Anyway, now I understand the standards are not clear and there are variations of practices. And, that's not a problem at all because office supplies are im...
by pub_acco
30 Jul 2020, 13:50
Forum: IFRS-related topics
Topic: Anticipated dividends
Replies: 14
Views: 2716

Re: Anticipated dividends

Dividends paid directly reduce equity unless they are related to certain types of preference shares.
by pub_acco
29 Jul 2020, 20:27
Forum: IFRS-related topics
Topic: Capitalize unconsumed office supplies?
Replies: 22
Views: 4700

Re: Capitalize unconsumed office supplies?

https://www.eyjapan.jp/services/assurance/ifrs/issue/ifrs-others/other/pdf/ifrs-other-2009-06-23.pdf https://assets.kpmg/content/dam/kpmg/jp/pdf/2020/jp-ifrs-compared-to-japanese-gaap-an-overview-2020-05.pdf (p.22) I think office supplies are inventories as long as they are used in production proces...
by pub_acco
29 Jul 2020, 14:52
Forum: IFRS-related topics
Topic: Capitalize unconsumed office supplies?
Replies: 22
Views: 4700

Re: Capitalize unconsumed office supplies?

I mean, I think IAS 2 is consistent in that it limits the scope to "production process" and excludes SG&A costs from the cost of inventories.
by pub_acco
28 Jul 2020, 15:10
Forum: IFRS-related topics
Topic: Capitalize unconsumed office supplies?
Replies: 22
Views: 4700

Re: Capitalize unconsumed office supplies?

Thank you marea. That's a good point. In the NRV context, I think the office supplies mean the supplies to be consumed in the rendering of services. The book emphasizes that selling costs should be excluded from the cost of inventories, so I think it's more consistent to interpret the inventories co...
by pub_acco
25 Jul 2020, 16:30
Forum: IFRS-related topics
Topic: Capitalize unconsumed office supplies?
Replies: 22
Views: 4700

Re: Capitalize unconsumed office supplies?

Hi Marek, IAS 6.2(c) says "in the form of materials or supplies to be consumed in the production process or in the rendering of services," so I think supplies consumed in SG&A process are excluded from the scope. Actually, office supplies are explicitly covered by the inventory standar...
by pub_acco
25 Jul 2020, 13:59
Forum: IFRS-related topics
Topic: Capitalize unconsumed office supplies?
Replies: 22
Views: 4700

Capitalize unconsumed office supplies?

Is it common under IFRS to defer the cost of office supplies unconsumed as of a reporting date as a current asset such as Prepaid Expenses? I mean by "office supplies" the stationery, printing paper, and other tangible short-term consumables used in selling, general, and administrative act...
by pub_acco
21 Jul 2020, 13:36
Forum: IFRS-related topics
Topic: IFRS 16 Covid rent concessions
Replies: 20
Views: 5131

Re: IFRS 16 Covid rent concessions

It’s surprising EU regulators need so much time. This amendment was ratified in May in my country.
by pub_acco
20 Jul 2020, 00:37
Forum: IFRS-related topics
Topic: Capitalising installation fees
Replies: 8
Views: 1987

Re: Capitalising installation fees

I am not fully understanding what you are installing, but if you are installing cables, connectors, etc. that connect your termination box with the customer's modem device and are under your ownership, it sounds natural to capitalize the cost of such installed devices along with the initial installa...
by pub_acco
19 Jul 2020, 12:18
Forum: General accounting and financial reporting discussion
Topic: Disposal of subsidiary
Replies: 7
Views: 4875

Re: Disposal of subsidiary

I don’t believe the measurement period provisions apply to sellers but IAS 10.9(c) sounds to apply.
by pub_acco
19 Jul 2020, 02:16
Forum: General accounting and financial reporting discussion
Topic: Disposal of subsidiary
Replies: 7
Views: 4875

Re: Disposal of subsidiary

A typical NWC adjustment does not meet the criteria of contingent consideration because it just reflects the information at the acquisition date. But I think whether it is a contingent consideration or not isn't an issue for the seller. Because everything has to be derecognized in the end from the s...
by pub_acco
12 Jul 2020, 13:05
Forum: IFRS-related topics
Topic: Do trade and other receivables/payables include non-financial accruals and deferrals?
Replies: 3
Views: 2211

Re: Do trade and other receivables/payables include non-financial accruals and deferrals?

Thank you guys! Now I can fearlessly stick to financial items. nauman - "Trade payables and other liabilities" was the very disclosure that drew my attention. This implied the norm to exclude non-financial items from payables/receivables. Marek - IFRS 7 is an eye-opening point. You're righ...
by pub_acco
12 Jul 2020, 02:39
Forum: IFRS-related topics
Topic: Do trade and other receivables/payables include non-financial accruals and deferrals?
Replies: 3
Views: 2211

Do trade and other receivables/payables include non-financial accruals and deferrals?

IAS 1 doesn't seem clear enough on the definition of trade and other receivables/payables, and I do see some variances in the presentation of non-financial accruals and deferrals in the real-world annual reports (e.g. some companies include prepayments in trade and other receivables while others do ...
by pub_acco
06 Jul 2020, 15:45
Forum: IFRS-related topics
Topic: swap hedge negotiated with a bank in order to hedge the Company's exposure in USD
Replies: 9
Views: 1632

Re: swap hedge negotiated with a bank in order to hedge the Company's exposure in USD

I’m not fully understanding Leo’s current accounting but I think most of P&L impacts are cancelled out of you always state the inter-company loans, swap contracts, and subsidiaries’ financial statements at the latest exchange rates.
by pub_acco
06 Jul 2020, 15:30
Forum: IFRS-related topics
Topic: swap hedge negotiated with a bank in order to hedge the Company's exposure in USD
Replies: 9
Views: 1632

Re: swap hedge negotiated with a bank in order to hedge the Company's exposure in USD

Maybe like this? Day 1. EUR/USD = 1.00 Parent: Dr. USD cash: EUR 100 (USD 100) Cr. USD loan: EUR 100 (USD 100) Borrow USD cash from sub Dr. EUR cash: EUR 100 Cr. USD cash: EUR 100 (USD 100) Give USD cash to bank and receive EUR cash Sub: Dr. USD loan: EUR 100 (USD 100) Cr. USD cash: EUR 100 (USD 100...
by pub_acco
03 Jul 2020, 20:36
Forum: IFRS-related topics
Topic: Can hedging gains / losses be reclassified to Revenue?
Replies: 2
Views: 683

Can hedging gains / losses be reclassified to Revenue?

Suppose an EUR-based Seller is selling a product to a customer at USD 100 and, in order to hedge FX fluctuation, Seller enters a currency forward contract with a bank well before it delivers the product. The forward contract is designated as a cash flow hedge instrument for the forecast sale, so Sel...
by pub_acco
01 Jul 2020, 03:00
Forum: IFRS-related topics
Topic: IAS 27- Investment in Subsidiary (Separate FS)
Replies: 12
Views: 2537

Re: IAS 27- Investment in Subsidiary (Separate FS)

IAS 27 allows to account for subsidiaries in a separate FS either at cost, in accordance with IFRS 9, or using the equity method. So just stating the sub at $100 is perfectly correct from auditors’ perspective, though it might not reflect the economic reality. You will need to derive some fair value...
by pub_acco
30 Jun 2020, 02:00
Forum: IFRS-related topics
Topic: Revenue or investment
Replies: 6
Views: 1438

Re: Revenue or investment

I was first thinking it would depend on whether the revenue sharing agreement is separately identifiable from the contract with the customer. In that case, the revenue sharing agreement will be treated as a non-cash consideration in accordance with IFRS 15 and accounted for almost as if it were an i...
by pub_acco
30 Jun 2020, 00:30
Forum: IFRS-related topics
Topic: Revenue or investment
Replies: 6
Views: 1438

Re: Revenue or investment

Do you mean, if it’s an investment, you are going to initially record dr. financial asset and cr. revenue at a fair value and subsequently measure the financial asset at FVTPL?
by pub_acco
27 Jun 2020, 15:30
Forum: IFRS-related topics
Topic: IAS 27- Investment in Subsidiary (Separate FS)
Replies: 12
Views: 2537

Re: IAS 27- Investment in Subsidiary (Separate FS)

Why do you not consider the equity method in accordance with IAS 27? The equity method produces more consistent results with consolidation than does FVTPL.
by pub_acco
23 Jun 2020, 02:43
Forum: IFRS-related topics
Topic: 'Circular' Associate
Replies: 4
Views: 1044

Re: 'Circular' Associate

70% NCI shouldn’t be a rare circumstance especially when an entity issues classes of shares that have different allocations of voting rights and profit sharing. It sounds to me that the role of Entity B in connection of the Asset matters. If Entity B provides services that are not under the control ...
by pub_acco
22 Jun 2020, 06:07
Forum: IFRS-related topics
Topic: Option and subsequent accounting
Replies: 3
Views: 980

Re: Option and subsequent accounting

Interesting transaction. Why does the holding company forfeit the 70% of cash flows for only $2? I’m assuming there’s another agreement behind this that should be accounted for together. Otherwise, the fair value of the derivative should be also $1 for this transaction to make sense.
by pub_acco
21 Jun 2020, 14:34
Forum: IFRS-related topics
Topic: IAS 41 Bearer animals
Replies: 6
Views: 1981

Re: IAS 41 Bearer animals

Thank you!
by pub_acco
21 Jun 2020, 04:59
Forum: IFRS-related topics
Topic: IAS 41 Bearer animals
Replies: 6
Views: 1981

Re: IAS 41 Bearer animals

Yeah, the basis of conclusion part clearly describes the difference between biological assets and other accounts and would be convincing if bearer plants were also measured at fair value... It is the different treatment of bearer plants and animals that confuses me because they share some characteri...
by pub_acco
20 Jun 2020, 09:24
Forum: IFRS-related topics
Topic: IAS 41 Bearer animals
Replies: 6
Views: 1981

Re: IAS 41 Bearer animals

It’s true bearer animals are much more mobile and transferable than are bearer plants, and that could be a reason for the different treatment. I still see it though somewhat inconsistent with other standards because there are many categories of machinery, equipment, vehicles, etc. under IAS 16 whose...
by pub_acco
20 Jun 2020, 03:02
Forum: IFRS-related topics
Topic: IAS 41 Bearer animals
Replies: 6
Views: 1981

IAS 41 Bearer animals

Does anyone know the reason why bearer animals are accounted for as biological assets and measured principally at fair value? Bearer plants are explicitly excluded from the scope of IAS 41, but the standard is weirdly silent on bearer animals except that dissenting opinions point out bearer animals ...
by pub_acco
07 Jun 2020, 06:58
Forum: IFRS-related topics
Topic: Repository of IFRS annual reports
Replies: 14
Views: 3865

Re: Repository of IFRS annual reports

Doesn’t look affordable for consumer users either :roll:
by pub_acco
17 May 2020, 14:16
Forum: IFRS-related topics
Topic: Bond arrangement
Replies: 19
Views: 3351

Re: Bond arrangement

Does IFRS 9.3.2.23 provide the answer? It sounds odd to treat the bond as a “collateral” as in para 3.2.23 when Entity A assumes no liability, but the paragraph seems to describe a comprehensive and reasonable treatment of the bond arrangement.