Hi,
no, it works the other way around, see here:
https://ifrscommunity.com/knowledge-bas ... iabilities
M.
Search found 3296 matches
- 13 May 2019, 11:06
- Forum: IFRS-related topics
- Topic: IAS 16 & Business Combinations
- Replies: 4
- Views: 2666
- 11 May 2019, 18:25
- Forum: IFRS-related topics
- Topic: IAS 24 Related Party Disclosures
- Replies: 8
- Views: 3897
Re: IAS 24 Related Party Disclosures
I'm not sure I understand your question. Can you please explain what you mean with a simple example?
- 08 May 2019, 10:56
- Forum: IFRS-related topics
- Topic: Reimursement vs income
- Replies: 8
- Views: 4090
Re: Reimursement vs income
So this discussion would be much more interesting if he joined us
- 08 May 2019, 10:34
- Forum: IFRS-related topics
- Topic: Reimursement vs income
- Replies: 8
- Views: 4090
Re: Reimursement vs income
So this is a regular service with gross revenue and expenses to be recognised by the letting agent, I'm not even sure whether there are any doubts here
- 08 May 2019, 09:49
- Forum: IFRS-related topics
- Topic: Reimursement vs income
- Replies: 8
- Views: 4090
Re: Reimursement vs income
So I understand that the letting agent decides what needs to be repaired, by whom and for what price. The letting agent also directs the work of subcontractors? If so, the letting agent is a principal in my opinion.
- 07 May 2019, 18:40
- Forum: IFRS-related topics
- Topic: Reimursement vs income
- Replies: 8
- Views: 4090
Re: Reimursement vs income
Hi, this is a principal vs. agent question and a little more information is needed. Have a look at this section in the knowledge base: https://ifrscommunity.com/knowledge-base/ifrs-15-specific-application-points/#principal-vs-agent-considerations It contains references to IFRS 15 where you'll find m...
- 06 May 2019, 09:46
- Forum: IFRS-related topics
- Topic: Purchase of land to be given to a proposed company in exchange for shares
- Replies: 10
- Views: 5066
Re: Purchase of land to be given to a proposed company in exchange for shares
Hi, investments in JV were then accounted for under IAS 31, now under IFRS 11. Initial recognition is at cost. The only judgement I see here is the question of whether the land was already transferred to JV at the reporting date. Mehranmichail wrote that JV was not even properly incorporated, so it’...
- 04 May 2019, 22:37
- Forum: IFRS-related topics
- Topic: Accounting for bank account opened by estate agent for depositing tenants rent and paying out to lanlords
- Replies: 4
- Views: 2523
Re: Accounting for bank account opened by estate agent for depositing tenants rent and paying out to lanlords
Cash is a financial asset for sure. The question here was whose asset it was. But I'm pretty sure that the agent should recognise cash assets from what you've written.
- 04 May 2019, 20:41
- Forum: IFRS-related topics
- Topic: IFRS 9 fair value of interest-free concessional sovereign loans
- Replies: 1
- Views: 1771
Re: IFRS 9 fair value of interest-free concessional sovereign loans
Sure, fair value does not have to be based on quoted prices in this case.
Have a look here:
https://ifrscommunity.com/knowledge-bas ... -hierarchy
But calculation of the appropriate discount rate will still be a challenge.
Have a look here:
https://ifrscommunity.com/knowledge-bas ... -hierarchy
But calculation of the appropriate discount rate will still be a challenge.
- 04 May 2019, 20:35
- Forum: IFRS-related topics
- Topic: IFRS 9 fair value of interest-free note receivable
- Replies: 1
- Views: 1813
Re: IFRS 9 fair value of interest-free note receivable
Re. measurement: have a look here a tell us how this applies to your case, why this instrument is interest free? https://ifrscommunity.com/knowledge-base/ifrs-9-measurement-of-financial-instruments/#below-market-interest-rate-loans re. classification: have a look here: https://ifrscommunity.com/know...
- 04 May 2019, 20:28
- Forum: IFRS-related topics
- Topic: Accounting for bank account opened by estate agent for depositing tenants rent and paying out to lanlords
- Replies: 4
- Views: 2523
Re: Accounting for bank account opened by estate agent for depositing tenants rent and paying out to lanlords
Hi, I agree with you, point 1. makes it clear to me that the money on this bank account should be recognised as an asset of the agent. We can consider two scenarios to explore this further: 1/ Tenants made their transfers to this bank account, but the bank goes bankrupt and the agent did not manage ...
- 26 Apr 2019, 23:33
- Forum: IFRS-related topics
- Topic: IAS 24 Related Party Disclosures
- Replies: 8
- Views: 3897
Re: IAS 24 Related Party Disclosures
No, you need to carefully read the references in this paragraph. It takes a while to digest it :) Paragraph IAS 24.9(b)(vii) reads: A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity. So it refers to (a)(i) ONLY and (a...
- 26 Apr 2019, 22:34
- Forum: IFRS-related topics
- Topic: IAS 24 Related Party Disclosures
- Replies: 8
- Views: 3897
Re: IAS 24 Related Party Disclosures
Hi, in my opinion there are no conflicting paragraphs when it comes parties related through key management personnel. Two entities are not related merely because they share a member of key management personnel. In which paragraph IAS 24 states otherwise in your opinion?
- 19 Apr 2019, 22:21
- Forum: IFRS-related topics
- Topic: Purchase of land to be given to a proposed company in exchange for shares
- Replies: 10
- Views: 5066
Re: Purchase of land to be given to a proposed company in exchange for shares
frankly speaking, I don't see any justification for presenting this property as an investment in JV
- 19 Apr 2019, 10:45
- Forum: IFRS-related topics
- Topic: Purchase of land to be given to a proposed company in exchange for shares
- Replies: 10
- Views: 5066
Re: Purchase of land to be given to a proposed company in exchange for shares
Maybe the agreement for purchase of the land was structured so that it was never an asset of the reporting entity. Well, it seems we need much more information about so-called facts and circumstances if you’d like to discuss it.
- 18 Apr 2019, 16:42
- Forum: IFRS-related topics
- Topic: Purchase of land to be given to a proposed company in exchange for shares
- Replies: 10
- Views: 5066
Re: Purchase of land to be given to a proposed company in exchange for shares
Hi
I would say that as an asset held for sale under IFRS 5, based on paragraphs IFRS 5.11 and IFRS 5.10.
What was your conclusion?
I would say that as an asset held for sale under IFRS 5, based on paragraphs IFRS 5.11 and IFRS 5.10.
What was your conclusion?
- 17 Apr 2019, 18:23
- Forum: IFRS-related topics
- Topic: Incremental borrowing rate | IFRS 16
- Replies: 18
- Views: 17654
Re: Incremental borrowing rate | IFRS 16
Hi Gibby, first of all – welcome to the Forum, I hope we’ll have many fruitful discussions here :) To be honest, I’m not an optimist in this area, I think that the diversity in practice is here to stay. The IASB research project on discount rates in IFRS was launched many years ago, so IFRS 16 could...
- 15 Apr 2019, 12:02
- Forum: IFRS-related topics
- Topic: Accounting treatment of receipts of real estate agent
- Replies: 4
- Views: 2836
Re: Accounting treatment of receipts of real estate agent
I agree with your analysis. The intermediate lessor clearly acts as a principal in this transaction. If it accounts for the head lease using the practical expedient for short-term leases, then the sublease is an operating lease (IFRS 16.B58). So the expense of GBP 1,000 and income of GBP 1,200 are r...
- 14 Apr 2019, 18:28
- Forum: IFRS-related topics
- Topic: Accounting treatment of receipts of real estate agent
- Replies: 4
- Views: 2836
Re: Accounting treatment of receipts of real estate agent
Hi, I would tackle this matter in two steps: 1/ Consider whether the intermediate party (landlord) is a principal or an agent - it's best done by applying IFRS 15 principal vs agent considerations This would determine the net vs gross presentation of lease income. 2/ Then look at IFRS 16 requirement...
- 08 Apr 2019, 14:23
- Forum: IFRS-related topics
- Topic: How to recognize future agreement on balance sheet?
- Replies: 2
- Views: 1986
Re: How to recognize future agreement on balance sheet?
Hi, this would be against IFRS in my opinion. Under IFRS 16.67, lessor recognises a lease when an underlying asset is made available for use by a lessee (the commencement date). This approach is also consistent with general approach to executory contracts under IFRS – you don’t recognise anything wh...
- 02 Apr 2019, 19:16
- Forum: IFRS-related topics
- Topic: IFRS 16 Modelling - Quarterly rent payment example
- Replies: 6
- Views: 20451
Re: IFRS 16 Modelling - Quarterly rent payment example
I'm happy to see that you found this example useful. For quarterly payments, all you need to do is to change the formulas for discounting factors and discounting expense. As other users may find it useful, I prepared a variation of this example which is now available in this excel file , does it ans...
- 25 Mar 2019, 11:49
- Forum: IFRS-related topics
- Topic: Incremental borrowing rate | IFRS 16
- Replies: 18
- Views: 17654
Re: Incremental borrowing rate | IFRS 16
First of all, well done on the forum and the website! thanks :) Regarding CPI-linked payments - from digging in Basis for Conclusions (BC 166) I understand that interest rate should be nominal. OK so we agree that this should be a nominal interest rate. In the reports of similar companies, I see a ...
- 24 Mar 2019, 21:29
- Forum: IFRS-related topics
- Topic: Incremental borrowing rate | IFRS 16
- Replies: 18
- Views: 17654
Re: Incremental borrowing rate | IFRS 16
Hi, this is a point that is high on my list when it comes to expanding the knowledge base:) I hope we will see other people sharing their approaches to this matter on this forum, but probably it is at a too early stage of development yet. As I talked to my colleagues offline, they mostly adopt a sim...
- 07 Feb 2019, 19:13
- Forum: IFRS-related topics
- Topic: IFRS 16 - Reduce rent payments
- Replies: 1
- Views: 2486
Re: IFRS 16 - Reduce rent payments
Hi AQS, I suggest you use the excel example available in the Knowledge Base: https://ifrscommunity.com/knowledge-base/ifrs-16-recognition-and-measurement-of-leases/#ifrs_16_example_initial_measurement_of_right-of-use_asset_and_lease_liability and adjust it by entering actual data with no or reduced ...
- 25 Jan 2019, 13:23
- Forum: IFRS-related topics
- Topic: are contract assets financial assets?
- Replies: 1
- Views: 4199
Re: are contract assets financial assets?
Hi, contract assets recognised under IFRS 15 are out of scope of IFRS 9 (IFRS 9.2.1j). However, they are subject to impairment requirements of IFRS 9 (IFRS 15.107). In general, a contract asset meets the definition of a financial asset in my opinion. IFRS 15.107 states that “A contract asset is an e...
- 06 Dec 2018, 19:57
- Forum: IFRS-related topics
- Topic: Cash Flow Hedge – presentation in statement of comprehensive income
- Replies: 1
- Views: 3867
Re: Cash Flow Hedge – presentation in statement of comprehensive income
Whichever method you choose, you won’t tell 100% truth :) I would point to the “not reclassified” category, as this is how most of the cash flow reserve will be used. This is because when you recognise gain/losses in OCI, you expect to transfer these amounts directly to related non-financial asset/l...