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Now the contract sounds to me like a trust or discretionary investment management service and it sounds reasonable to treat B as an agent, though A bears a considerable credit risk to B.

The cash received is simply recognised as a new financial asset/liability at amortised cost, agreed?

Yeah agreed. It seems I was somehow confusing accounting treatments by both buyer and seller.

I think the transaction sounds quite similar to ordinary repos except that it’s very long-term and involves no cash exchange at the initiation. So, I guess Entity B should initially recognize the bond as an asset and a borrowing from Entity A as a liability both at the bond’s fair value and subseque...

It seems readers can also pay for the annual reports. But the pricing is unclear...

http://www.irsolutions.com/irSolutions- ... vices.html

XBRL disclosure has already been required in my country and thus it’s been a quite common practice to go through taxonomies to find an “official” chart of accounts

Yep. I usually take a look at ITI for comprehensive lists. The line item labels are so redundant and not cool though.

How about IFRS Taxonomy Illustrated?

https://www.ifrs.org/issued-standards/i ... trated2020

Hi Marek, that’s exactly what I have been doing. It’s very good though to learn that nothing better is currently available than filling up my ‘Annual Reports’ folder with a bunch of downloaded annual report PDFs. I too hope the XBRL things make it much better.

Thank you.

Thank you Yasaswi. I have subscribed eIFRS and have full access to annotated standards, illustrative examples, and so on. I am rather looking for living examples of IFRS practices where companies often skip or cheat standards’ requirements so I can draft efficient and reasonably complying IFRS discl...

Hi everyone, I am looking for some kind of IFRS version of SEC’s EDGAR to browse real annual reports of large companies under IFRS. I mean, if I want to study US GAAP practices, I can go to EDGAR and go through a lot of 10-Ks. There is a similar repository in my country but IFRS practices available ...

Makes sense. Thank you.

Oh interesting. Do you think the cash flow presentation of EIR-based interest is clear in the standards or there might be variances in the practice? I’m aware IFRS 16 defines similar treatment to your suggestion for the interest paid for lease liabilities. Actuality, journal entries can be much simp...

My understanding about the relevant cash flow presentations: Proceeds from loans 95,000 (at day 1) Repayment of loans 100,000 (at redemption date) I just meant Unamortized discount makes it easier to determine non-cash interest expenses. We can usually determine them by collecting credit entries in ...

No journal entry is necessary at the date of proceed. Dr. Cash 95,000 Cr. Loans payable 95,000 Initial recognition But it's a quite common technique to record the transaction cost using a separate contra account like this: Dr. Cash 95,000 Cr. Loans payable 100,000 Dr. Unamortized discount 5,000 Init...

Hi Marek, a little bit off topic, but do you think we can capitalize the cost of hedging of the payables recognized at the same time as the recognition of the PP&E items? In AbrarurR's case, the FX fluctuation after the day when the PP&E item and corresponding payable to the supplier are rec...

The transaction doesn't really make sense to me. How does S2 return the ABC shares to S1 when the nominal entity has sold the shares to Q? Is the group cash strapped only in the short term? If so, it should be much easier for H to just go to a bank, pledge the ABC shares, and borrow CU 500 for the s...

Hi Leo, your numbers are correct I think. My reply was just an off-topic comment relating to the deferred asset and exIFRS's comment. Thank you Marek and exIFRS for your comments. Marek's comment reminds me of a discussion with my colleagues about the difference between IAS 38 intangibles and custom...

My question is also answered. Thank you exIFRS! Btw, it’s actually interesting though that IFRS doesn’t really have direct provisions for so-called deferrals and accruals even though they show up everywhere in the accounting world like the facility fee in Leo’s case. IAS 1.27 is the only paragraph t...

In a similar situation, I just amortized the initial payment over the contractual term using the straight-line method. I'm aware this is just a practical treatment that can be acceptable only when the transaction is immaterial. But, the effect of compounding is usually negligible in the short-term, ...

The hybrid approach sounds really good. Time period selection might be the issue for the initial impairment periods as well as the useful lives for amortization. But from my experience, determining the useful lives of goodwill involves much less bullsh*t than annual impairment testing.

I would love amortization :D I'm totally tired of bullsh*tting arbitrary numbers for the 'best estimate' of COVID-19 impact. Who knows? Impairment testing is too hard for the human being to implement. Seriously speaking, I am actually convinced that the impairment model is the best approach to refle...

It sounds to me that the 'commitment' to renew the original portion of the lease contract may qualify as a significant event defined in IFRS 16 para 20 and thus trigger the remeasurement of the lease liability pursuant to para 40.

Very interesting and helpful discussion. I am fully convinced now that the facility was contributed to the joint operation and no longer belonged to the contributor even though the facility was recorded as PP&E as if it had been directly owned by the contributor. One of my colleagues did point i...

Hi, in your case, no temporary difference arises at the acquisition of the asset if the entire CU100 cost will eventually be deductible for tax purposes. Then, IRE is not relevant. Temporary differences arise in subsequent years as you record different depreciation amounts for accounting and tax pur...

Actually, the key issue we argued over in this case was whether putting an asset under a joint control was a 'sale' or not. In this specific case, we identified a joint control because joint approvals were required for major upgrades, disposals, and changes in usage of the facility. But, the contrib...

I do agree a contribution of assets for shares meets the criteria of sales. A tricky case I saw was a contribution of a facility to a joint operation where the facility continued to be booked as PP&E on the balance sheets of the contributor according to IFRS 11. In this specific case, I conclude...

Thank you for the replies. BC18 and para 8 sound like great support not to classify the associate as held for sale. As for the definition of 'sale', do you know any discussion over the terminology or do I just need to stick to the dictionary definition? The standard is quite clear that distribution ...

Hi everyone, I would like some help with interpretation of IFRS 5 non-current assets held for sale in the case of an involuntary loss of significant influence over an associate through a stock swap merger transaction. My employer owns a publicly-traded associate and has accounted for it using the eq...