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I am referring to an asset. Development costs incurred up to now by X. Is not a call option. The Jv acquired the asset ( several assets) at a early stage and has the duty to develop it up to be ready to build. The contract between X and JV states that if the asset is ready to build it will be sold b...

Is zero. The posting is reversed.

Group net income: 0
net income attributable to owners of the parent: +36.75
net income attributable to non-controlling interests: -36.75

At the end of useful life the group profit will be 36.75 (49% of 75) and the NCI a loss of 36.75

Hi If a company X sell in 20X1 an asset to a JV owned 50% by X (perfect 50-50 governance). The JV is consolidated with the equity method. The project is sold with a margin of 100. This project will be developed JV in 20X2 e 20X3. If the project is successful, the project will be sold to X in 20X3. F...

Thanks!

Yes.
You do not need to make any allocation. The initial posting will be reversed without considering the minority. The higher cost (markup) is in the result of the subsidiary. The result will be allocated 49% to the NCI.

Very interesting! thanks! We are expiring both cases. I understand that “non-financial liabilities are generally accounted for under IAS 37. IAS 37 does not require or permit fair value measurement. Non-financial liabilities are measured at fair value under IFRS 13 only when they are assumed in a bu...

:D ok I wasn’t sure about the question. sorry! I'm referring to decommission costs related to a company that has a plant that produces copper wire. The estimate of the costs has embedded a contingency (15%). We always used the risk free to calculate the NPV. But, we never considered risk of non-perf...

I've talked with the auditors. Also, in their opinion we need to reverse to initial posting. At the end of the day the NCI (49%) is realized. Most of the consolidation software, allocating the posting to the subsidiary, create a minority. This should be corrected manually. Think it this way: If X in...

I don't get your highlight. Y will post additional depreciation of 75 over the useful life, and you will reverse this additional depreciation in consolidation journal, right? correct Both entries will be attributed to NCI the same way, so the effect on NCI will be nil If I reverse the initial posti...

ok makes sense to me. Thanks I just wanted to highlight that, in case A, during the useful life of the asset the company Y will have a lower profit of 75 consolidated in the Group profit at 51% (-38.25) while the reversal of posting of the mark up will be in full + 75. Net effect for the Group +36,7...

It is for the decommissioning cost also known as asset retirement obligation: is the cost incurred by companies in reversing the modifications made to landscape when a fixed asset is used up.

Hi I have below query. There are two companies X and Y that are part of the same Group. X owns and controls Y with 51% of the shares. Case A X sells an asset to Y with a mark-up of 100. The tax rate is 25%. 1) the gain of 100 is eliminated at consolidated level against the asset (gain@asset 100) 2) ...

Hi I'm referring to the example 11 of IFRS 13 that states that it is needed to calculate the: 1) risk of non-performance 2) Market risk premium to estimate the fair value of the Decommissioning liability How can I calculate the correct risk of non-performance? How can I calculate the correct Market ...

Marek Muc wrote: ↑29 Dec 2020, 20:29 I've just added this KPMG chart linked to by exIFRS

The link does not work in the Knowledge Base

Good to know. Waiting for the countries decision.

thanks Marek!

I am taking about benchmark quotes (non-specific) provided to our entity by our relation banks. Do we need to ask quotes only to banks investment grade?

Hi,

I would like to ask your opinion:

the updated kd to be used when calculating the impairment test must a cost of debt asked to a bank investment grade ?

any reference in the IFRS/Manual IFRS?

Thanks

Hi as you know IFRS 3.45 says that "If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report in its financial statements provisional amounts for the items for which the accounting is incomple...

Thank you Marek. I find it very useful and interesting. Congratulations!
I hope to give some contribution to the forum.

are you sure this was a similar case? did you have different ratios at different dates and you complied with the one required at the reporting date? no, you are right, it isn’t. In the scenario Case 2 of the staff paper: "the fact pattern is the same as Case 1 except: (a) instead of the condit...

What do you mean by SOLP and SOFP?
Thanks

Looks like the ratio is not above at the date of reporting. current. We had a similar case. Ratio non respected a 31.12.x1 Waived in January x2. The loan was considered current.

One thing unclear to me is the place and timing, in separate FS, of the reclassification of the cash flow hedge reserve accumulated through the years 1-3 until the corporate split took place. It is clear that the CFH reserve should be reclassified to P&L through the remaining years 3-5 in the c...

Very interesting! Thanks

yes please!

Hello, could you please help with the following scenario: Company X, part of a Group, has a plant that produces 150 tonnes a year of copper wire and sells it to the market. The company enters into a contract with a bank to sell virtually 100 tonnes year of copper wire at a fixed price (CU200/tonne) ...

I agree

the FV of the 50% is the Price but the effect in P&L is equal to the gain. Is this what to mean?