Hi, when you pay in advance, you add this payment to the initial value of the right of use asset which is recognised at the commencement date.
See this example where you can see how an upfront payment is treated.
Search found 3276 matches
- 08 Jul 2019, 09:47
- Forum: IFRS-related topics
- Topic: IFRS-16- Advance rent
- Replies: 1
- Views: 2523
- 05 Jul 2019, 12:27
- Forum: IFRS-related topics
- Topic: IFRS 15 Applying the Distinct Criteria
- Replies: 4
- Views: 1924
Re: IFRS 15 Applying the Distinct Criteria
Hi and welcome to our Forum.
Please have a look at this section:
https://ifrscommunity.com/knowledge-bas ... r-services
and let us know what your thoughts are based on the above and your specific case
Please have a look at this section:
https://ifrscommunity.com/knowledge-bas ... r-services
and let us know what your thoughts are based on the above and your specific case
- 05 Jul 2019, 09:33
- Forum: IFRS-related topics
- Topic: Sales commission related to Projects
- Replies: 9
- Views: 3078
Re: Sales commission related to Projects
It all depends what you're trying to show. If you want to present a separate line called "selling expenses" then I think that selling commissions belong there, otherwise what is the point of such a line? But IFRS do not require to present such a line in your P/L, so it really is up to you,...
- 04 Jul 2019, 15:11
- Forum: IFRS-related topics
- Topic: Rent of branchs
- Replies: 1
- Views: 1255
Re: Rent of branchs
Hi, please take a look at this page:
https://ifrscommunity.com/knowledge-bas ... ease-term/
and at this recognition exemption:
https://ifrscommunity.com/knowledge-bas ... erm-leases
And feel free to come back with more specific questions should you have any
https://ifrscommunity.com/knowledge-bas ... ease-term/
and at this recognition exemption:
https://ifrscommunity.com/knowledge-bas ... erm-leases
And feel free to come back with more specific questions should you have any
- 04 Jul 2019, 15:07
- Forum: IFRS-related topics
- Topic: Sales commission related to Projects
- Replies: 9
- Views: 3078
Re: Sales commission related to Projects
so what is your definition of COGS?
- 04 Jul 2019, 14:01
- Forum: IFRS-related topics
- Topic: Sales commission related to Projects
- Replies: 9
- Views: 3078
Re: Sales commission related to Projects
well, this is a typical selling expense, right?
- 03 Jul 2019, 10:02
- Forum: IFRS-related topics
- Topic: IFRS 16 - Lease Term
- Replies: 8
- Views: 3111
Re: IFRS 16 - Lease Term
Hi, options must be enforceable in order to be taken into account below is the link to the knowledge base where you can find references to IFRS 16 https://ifrscommunity.com/knowledge-base/ifrs-16-lease-term/#options-to-extend-or-terminate-a-lease You can think about it this way: the lessor can unila...
- 01 Jul 2019, 09:24
- Forum: IFRS-related topics
- Topic: IFRS 16 -Lease Payments
- Replies: 10
- Views: 3734
Re: IFRS 16 -Lease Payments
OK so my approach is the same as yours, i.e. the payment under the purchase option is included in lease payments and therefore there is no unguaranteed residual value
- 29 Jun 2019, 19:33
- Forum: IFRS-related topics
- Topic: IFRS 16 -Lease Payments
- Replies: 10
- Views: 3734
Re: IFRS 16 -Lease Payments
When measuring the lease - will you include the payment under the purchase option in lease payments?
- 29 Jun 2019, 19:27
- Forum: IFRS-related topics
- Topic: Stock warrants- derivative liability.
- Replies: 1
- Views: 1677
Re: Stock warrants- derivative liability.
Hi, in my opinion the liability should be remeasured to FV on exercise date (via P/L), and the issuance of shares is recorded DR liability CR equity. So you credit the equity with the ultimate FV of liability
- 29 Jun 2019, 19:08
- Forum: IFRS-related topics
- Topic: IFRS 16 - Lease Term
- Replies: 8
- Views: 3111
Re: IFRS 16 - Lease Term
In my opinion it is not enforceable as the price is not set, you do need a further consent from the lessor to exercise that option...
- 29 Jun 2019, 19:05
- Forum: IFRS-related topics
- Topic: IFRS 16 -Lease Payments
- Replies: 10
- Views: 3734
Re: IFRS 16 -Lease Payments
I think it's best to start with 1/ lease term and 2/ lease payments, and then the assumptions for discount rate should be consistent. When you say that the extension option can be enforced by the Fund, then you must include period covered by this option in lease term and lease payments right? When m...
- 28 Jun 2019, 12:12
- Forum: IFRS-related topics
- Topic: IFRS 16 -Lease Payments
- Replies: 10
- Views: 3734
Re: IFRS 16 -Lease Payments
I see, as I wrote before, I would include them in a lease liability similarly to payments that depend on index/rate. The payments that you mentioned do not depend on future activity of a lessee or an underlying asset and therefore the is no reason to exclude them from lease liability
- 28 Jun 2019, 11:44
- Forum: IFRS-related topics
- Topic: IFRS 16 -Lease Payments
- Replies: 10
- Views: 3734
Re: IFRS 16 -Lease Payments
I would include them in the lease liability, as they don't depend on future activity of a lessee or an underlying asset. And I would use payments as calculated using current valuation of this pension fund obligation. Why are these payments linked to pension fund anyway? Is it a way of financing paym...
- 28 Jun 2019, 11:38
- Forum: IFRS-related topics
- Topic: IFRS 16 - Lease Term
- Replies: 8
- Views: 3111
Re: IFRS 16 - Lease Term
So you think that this kind of extension options are enforceable? i.e. they can be exercised by a lessee without any consent by the lessor?
As I see it, if the price is not agreed, such an option is not enforceable, as you de facto need a consent by the lessor, as the price is a crucial factor here
As I see it, if the price is not agreed, such an option is not enforceable, as you de facto need a consent by the lessor, as the price is a crucial factor here
- 27 Jun 2019, 18:13
- Forum: IFRS-related topics
- Topic: IFRS 15 : Capitalisation of Contract Cost
- Replies: 3
- Views: 1914
Re: IFRS 15 : Capitalisation of Contract Cost
why do you need to allocate commissions to contracts? If they are incremental, aren't they specifically linked to a contract?
- 27 Jun 2019, 11:14
- Forum: IFRS-related topics
- Topic: IFRS 15 : Capitalisation of Contract Cost
- Replies: 3
- Views: 1914
Re: IFRS 15 : Capitalisation of Contract Cost
Hi, the guidance is already included in the knowledge base:
https://ifrscommunity.com/knowledge-ba ... a-contract
can you be more specific with you question?
https://ifrscommunity.com/knowledge-ba ... a-contract
can you be more specific with you question?
- 26 Jun 2019, 09:24
- Forum: IFRS-related topics
- Topic: Cost of transferring materials from one warehouse to another
- Replies: 2
- Views: 1709
Re: Cost of transferring materials from one warehouse to another
Hi, the point of this paragraph is to state that such expenses should not be added to the cost of inventories in the balance sheet.
The classification in a specific line in P/L is up to you. In my opinion it can be treated as a cost of fulfilling the project
The classification in a specific line in P/L is up to you. In my opinion it can be treated as a cost of fulfilling the project
- 25 Jun 2019, 22:01
- Forum: IFRS-related topics
- Topic: IFRS 16 -Lease components Separation
- Replies: 11
- Views: 4400
Re: IFRS 16 -Lease components Separation
Then yes - two separate discount rates are needed
- 25 Jun 2019, 18:16
- Forum: IFRS-related topics
- Topic: IFRS 16 -Lease components Separation
- Replies: 11
- Views: 4400
Re: IFRS 16 -Lease components Separation
I think it's more a question on application of the local law. If the equipment is a part of the building, is it really against the law to enter into a 30-year "combined" lease? And if so, does it mean that there is no liability beyond this 7-year period to the lessor with respect to the eq...
- 25 Jun 2019, 10:45
- Forum: IFRS-related topics
- Topic: How much revenue when invoice contains reimbursement of certain expenses
- Replies: 3
- Views: 2028
Re: How much revenue when invoice contains reimbursement of certain expenses
Hi,
it depends
see these two sections of the knowledge base:
https://ifrscommunity.com/knowledge-bas ... rd-parties
https://ifrscommunity.com/knowledge-bas ... e-customer
it depends
see these two sections of the knowledge base:
https://ifrscommunity.com/knowledge-bas ... rd-parties
https://ifrscommunity.com/knowledge-bas ... e-customer
- 18 Jun 2019, 12:32
- Forum: IFRS-related topics
- Topic: IFRS 15 - Inquiry from Projects Business
- Replies: 8
- Views: 3638
Re: IFRS 15 - Inquiry from Projects Business
Note that you need to meet only one of the criteria for PO to be treated as satisfied over time. The entries that you provided are OK, except that a contract asset is not the same as WIP, you probably meant contract costs there
- 17 Jun 2019, 22:17
- Forum: IFRS-related topics
- Topic: IFRS 15 - Inquiry from Projects Business
- Replies: 8
- Views: 3638
Re: IFRS 15 - Inquiry from Projects Business
in my opinion, it's very unlikely that each milestione in a contract is a separate PO. And it's hardly possible that such a fragmented PO meets all the criteria for being satisifed over time - all at the same time :) it's all explained in more detail in the knowledge base, it's really worth reading ...
- 17 Jun 2019, 10:38
- Forum: IFRS-related topics
- Topic: IFRS 15 - Inquiry from Projects Business
- Replies: 8
- Views: 3638
Re: IFRS 15 - Inquiry from Projects Business
You still haven't answered the most crucial question here: is it a performance obligation satisfied over time? If so - why? You seem to be saying that this should be rather a performance obligation satisfied at a point in time. In such a case, there is no measurement of progress at all - you simply ...
- 17 Jun 2019, 00:09
- Forum: IFRS-related topics
- Topic: IFRS 15 - Inquiry from Projects Business
- Replies: 8
- Views: 3638
Re: IFRS 15 - Inquiry from Projects Business
Hi, it's not clear to me what industry this is - construction? I see you have many objections whether input method is suitable. I suggest that you take a step back and answer another question - whether this is a performance obligation satisfied over time? See here: https://ifrscommunity.com/knowledg...
- 14 Jun 2019, 21:28
- Forum: IFRS-related topics
- Topic: IFRS 2 - transfer of share option schemes to another group company
- Replies: 3
- Views: 1970
Re: IFRS 2 - transfer of share option schemes to another group company
Some details on this arrangement would be useful What is the economic/business reason for such a transfer? Will employees be transferred as well? Which entity will be eventually issuing shares? Will there be any payment made by Co A?
- 13 Jun 2019, 20:32
- Forum: IFRS-related topics
- Topic: IFRS 2 - transfer of share option schemes to another group company
- Replies: 3
- Views: 1970
Re: IFRS 2 - transfer of share option schemes to another group company
Hi, I'm pretty sure there is no such guidance. Feel free to give us more details on this transaction and your thoughts on how to approach it, and we can develop guidance together
- 10 Jun 2019, 11:30
- Forum: IFRS-related topics
- Topic: Accounting Treatment of Business Combination
- Replies: 1
- Views: 1505
Re: Accounting Treatment of Business Combination
I don’t see any ‘negative goodwill’ here. In consolidated financial statements, it doesn’t really matter which entity pays. If Parent A paid 60m and Subsidiary B paid 40m, then total consideration would be 100m. Alternatively, if the payment by Subsid B of 40m is to be treated as a capital distribut...
- 03 Jun 2019, 19:37
- Forum: IFRS-related topics
- Topic: IFRS 16 - Lease Term
- Replies: 8
- Views: 3111
Re: IFRS 16 - Lease Term
Hi, in my opinion such extension options should be ignored as they have no real substance. Or, in IFRS 16 terms, they are not enforceable.
- 03 Jun 2019, 13:25
- Forum: IFRS-related topics
- Topic: IFRS 16 -Lease components Separation
- Replies: 11
- Views: 4400
Re: IFRS 16 -Lease components Separation
OK so you're saying that the conditions set out in IFRS 16.32 are met, i.e. the lease transfers ownership or the cost of the right-of-use asset reflects that the lessee will exercise a purchase option? then yes - it appears that the part attributable to land should not be depreciated. To reconcile t...