Search found 234 matches

by exIFRS
25 Sep 2020, 08:35
Forum: General accounting and financial reporting discussion
Topic: Difference between start up cost vs leasehold improvement when opening a new shop
Replies: 8
Views: 4607

Re: Difference between start up cost vs leasehold improvement when opening a new shop

1) I would say that directly attributable costs relate to items that are being recognised as PPE in accordance with IAS 16, and generally leasehold improvements fall under this category (assuming they meet the recognition criteria). See reference to: REIMBURSEMENT OF LEASEHOLD IMPROVEMENTS in this s...
by exIFRS
25 Sep 2020, 07:53
Forum: General accounting and financial reporting discussion
Topic: Difference between start up cost vs leasehold improvement when opening a new shop
Replies: 8
Views: 4607

Re: Difference between start up cost vs leasehold improvement when opening a new shop

On the surface what you describe appear to me to be leasehold improvements. I have always interpreted the "costs of opening a new facility" as the celebration and ceremony associated with a new facility (ribbon cutting ceremony or whatever the local equivalent is eg: https://www.vtcproject...
by exIFRS
24 Sep 2020, 21:31
Forum: IFRS-related topics
Topic: Transition to IFRS - adjuistments
Replies: 12
Views: 1942

Re: Transition to IFRS - adjuistments

D15 If a first-time adopter measures such an investment at cost in accordance with IAS 27, it shall measure that investment at one of the following amounts in its separate opening IFRS statement of financial position: (a) cost determined in accordance with IAS 27; or (b) deemed cost. The deemed cost...
by exIFRS
24 Sep 2020, 07:46
Forum: IFRS-related topics
Topic: Transition to IFRS - adjuistments
Replies: 12
Views: 1942

Re: Transition to IFRS - adjuistments

On what basis is the investment being measured in the separate financial statements? I presume cost?
by exIFRS
23 Sep 2020, 20:55
Forum: IFRS-related topics
Topic: Transition to IFRS - adjuistments
Replies: 12
Views: 1942

Re: Transition to IFRS - adjuistments

@marea I would agree with your reading of IFRS 1. IFRS 1.C4(h) is emphatic, no adjustments (other than for intangible assets and impairment (C4(g)). As you rightly point out if the liability was in reality employee expense it should be restated through Retained Earnings. This means effectively goodw...
by exIFRS
23 Sep 2020, 10:57
Forum: IFRS-related topics
Topic: Transition to IFRS - adjuistments
Replies: 12
Views: 1942

Re: Transition to IFRS - adjuistments

I am in the same boat as @Marek, IFRS 1 was a long time ago, and I was hoping someone with more recent knowledge might have something to say :D, but I thought I might pull out my old notes tonight and have a look (time permitting).
by exIFRS
22 Sep 2020, 22:48
Forum: IFRS-related topics
Topic: IFRS16 Initial Direct Costs
Replies: 3
Views: 1036

Re: IFRS16 Initial Direct Costs

I think EY sum it up best presently: Certain costs associated with acquiring an asset within the scope of IAS 16 are required to be capitalised upon initial recognition. However, IFRS 16 does not address the accounting for lessees’ costs incurred directly attributable to bringing a right-of-use asse...
by exIFRS
02 Sep 2020, 22:15
Forum: IFRS-related topics
Topic: Inventory Sale and repurchase...de-recognition?
Replies: 52
Views: 37313

Re: Inventory Sale and repurchase...de-recognition?

Yeah I phrased that badly, I realised you had also reached this conclusion. I think we have to be very carful as we are talking about three parties here, and I have been focused on the original holder of the inventory in this discussion (which I have loosely and probably badly referred to as "t...
by exIFRS
02 Sep 2020, 11:45
Forum: IFRS-related topics
Topic: Accounting estimate/error
Replies: 14
Views: 2244

Re: Accounting estimate/error

This seems to be the kind of circumstance that IFRIC 23 - Uncertainty over Income Tax Treatments was designed to address? http://eifrs.ifrs.org/eifrs/bnstandards/en/IFRIC23.pdf From Para 14: "An entity shall reflect the effect of a change in facts and circumstances or of new information as a ch...
by exIFRS
02 Sep 2020, 07:38
Forum: IFRS-related topics
Topic: Inventory Sale and repurchase...de-recognition?
Replies: 52
Views: 37313

Re: Inventory Sale and repurchase...de-recognition?

It is interesting (and always a risk in this format) that we have to rely so much on our assumptions. It is clear that we have some very different views about the real underlying economics of the transaction. This isn't a criticism of anyone, this is just a reality. My previous experience has always...
by exIFRS
01 Sep 2020, 23:04
Forum: IFRS-related topics
Topic: Inventory Sale and repurchase...de-recognition?
Replies: 52
Views: 37313

Re: Inventory Sale and repurchase...de-recognition?

Having looked into it a bit more I realise IFRS 15 seems to cover this situation fairly clearly. Obviously the company think they have found a way round it, but on the surface it seems Paras B64 - B69 are fairly explicit. But first from the company prospectus (page 38): the inventory asset, having b...
by exIFRS
01 Sep 2020, 15:11
Forum: IFRS-related topics
Topic: Inventory Sale and repurchase...de-recognition?
Replies: 52
Views: 37313

Re: Inventory Sale and repurchase...de-recognition?

I have to disagree, I think the main benefit of inventory is gains on sale, and the company retains this benefit. Simply churning cash is pointless if you are not bringing in more than you paid out. But out of interest what do you think the Debit in the SPV's financial statements from the "purc...
by exIFRS
31 Aug 2020, 18:14
Forum: IFRS-related topics
Topic: Inventory Sale and repurchase...de-recognition?
Replies: 52
Views: 37313

Re: Inventory Sale and repurchase...de-recognition?

I think control is clear cut in this case, it hasn't been transfered. B38 refers to principal/agent considerations, and that's not the argument I am making. I am talking about the customer being able to control the asset. Para 31 Revenue is only recognised when the CUSTOMER obtains control of the as...
by exIFRS
31 Aug 2020, 17:34
Forum: IFRS-related topics
Topic: Inventory Sale and repurchase...de-recognition?
Replies: 52
Views: 37313

Re: Inventory Sale and repurchase...de-recognition?

I am still reading through it, but it certainly doesn't pass the smell test to me. I am open to having my mind changed, but some quick thoughts on why I don't like it. I also initially thought we were dealing with finished inventory, but it may be raw materials based on the example provided. I don't...
by exIFRS
27 Aug 2020, 13:42
Forum: IFRS-related topics
Topic: Interpretations Committee agenda decisions
Replies: 13
Views: 2162

Re: Interpretations Committee agenda decisions

The are the boxed in text. But the annotated standards, for various reasons, can't be treated as definitive. The complete text of the agenda decisions is here: https://www.ifrs.org/supporting-impleme ... adecisions
by exIFRS
27 Aug 2020, 12:52
Forum: IFRS-related topics
Topic: Interpretations Committee agenda decisions
Replies: 13
Views: 2162

Re: Interpretations Committee agenda decisions

Marek Muc wrote: 27 Aug 2020, 12:48 why even bother with book versions? :shock: ;)
Such a millennial! I love my paper versions, well thumbed, easy to navigate, tagged and additional notes added in the margins. Just a shame I have to replace them soon.
by exIFRS
27 Aug 2020, 12:36
Forum: IFRS-related topics
Topic: Interpretations Committee agenda decisions
Replies: 13
Views: 2162

Re: Interpretations Committee agenda decisions

Having been responsible for the Annotated Standards I can tell you it wasn't that Machiavellian. :D
by exIFRS
27 Aug 2020, 12:22
Forum: IFRS-related topics
Topic: Interpretations Committee agenda decisions
Replies: 13
Views: 2162

Re: Interpretations Committee agenda decisions

I realise this isn't a perfect solution but the Annotated IFRS Standards, that can be purchased as a physical or e-book or accessed through the eIFRS Subscription, incorporate the Agenda Decisions. Reproducing them against the relevant paragraphs (unfortunately I can't insert an image here to show y...
by exIFRS
19 Aug 2020, 18:26
Forum: IFRS-related topics
Topic: Different approaches to recycling of FV gains/losses in IFRS 9
Replies: 32
Views: 7999

Re: Different approaches to recycling of FV gains/losses in IFRS 9

From what I understand the FASB are also revising their conceptual framework but are taking a lot longer. They have acknowledged that OCI is a difficult area but we don;t know much more. FASB Board Papers are confidential and so we never get as good an insight into what they are thinking.
by exIFRS
19 Aug 2020, 13:38
Forum: IFRS-related topics
Topic: IFRS 16 Covid rent concessions
Replies: 20
Views: 5079

Re: IFRS 16 Covid rent concessions

Some more detail here if you are interested. I think it puts preparers in an awkward position for the reasons you have noted.

https://www.accountancydaily.co/frc-ame ... oncessions
by exIFRS
18 Aug 2020, 14:19
Forum: IFRS-related topics
Topic: IFRS 16 Covid rent concessions
Replies: 20
Views: 5079

Re: IFRS 16 Covid rent concessions

I guess your basis of preparation changes from "These financial statements have been prepared in accordance with EU endorsed International Financial Reporting Standards (IFRS)" to simply "These financial statements have been prepared in accordance International Financial Reporting Sta...
by exIFRS
18 Aug 2020, 14:09
Forum: IFRS-related topics
Topic: IFRS 16 Covid rent concessions
Replies: 20
Views: 5079

Re: IFRS 16 Covid rent concessions

A relevant update from the FRC: "The Financial Reporting Council (FRC) has today confirmed it will not pursue regulatory action where issuers take advantage of the provisions contained in the Accounting for Lease Modifications (Amendment to IFRS 16 – Covid-19-Related Rent Concessions) before ad...
by exIFRS
18 Aug 2020, 13:30
Forum: IFRS-related topics
Topic: Different approaches to recycling of FV gains/losses in IFRS 9
Replies: 32
Views: 7999

Re: Different approaches to recycling of FV gains/losses in IFRS 9

I think 7.17 is the closest you are going to get: "Because the statement of profit or loss is the primary source of information about an entity’s financial performance for the period, all income and expenses are, in principle, included in that statement. However, in developing Standards, the Bo...
by exIFRS
18 Aug 2020, 13:06
Forum: IFRS-related topics
Topic: Different approaches to recycling of FV gains/losses in IFRS 9
Replies: 32
Views: 7999

Re: Different approaches to recycling of FV gains/losses in IFRS 9

This is probably the key paper: April 2014 Board Meeting Project Conceptual Framework Paper topic Initial strategy: Profit or loss and other comprehensive income https://cdn.ifrs.org/-/media/feature/meetings/2014/april/iasb/conceptual-framework/ap10d-profit-or-loss-and-other-comprehensive-income.pdf
by exIFRS
18 Aug 2020, 12:57
Forum: IFRS-related topics
Topic: Different approaches to recycling of FV gains/losses in IFRS 9
Replies: 32
Views: 7999

Re: Different approaches to recycling of FV gains/losses in IFRS 9

I think OCI is more of a Conceptual Framework issue. Chapter 7 paras 7.15 - 7.19 are the key ones, though I don't think you will find any enlightenment. The BC to the 2018 Conceptual Framework notes: BC7.24: Accordingly, the 2018 Conceptual Framework sets out a principle that all income and expenses...
by exIFRS
18 Aug 2020, 09:41
Forum: IFRS-related topics
Topic: IAS 37 Provisions
Replies: 9
Views: 1811

Re: IAS 37 Provisions

My view (happy to hear alternatives): 1. I would only treat it as an error under IAS 8 if it meets the definition as per IAS 8.5 prior period error and only if material by size or nature. 2. If the related item no longer exists I would close out the provision to "other income" again unless...
by exIFRS
17 Aug 2020, 22:34
Forum: IFRS-related topics
Topic: IAS 37 Provisions
Replies: 9
Views: 1811

Re: IAS 37 Provisions

You're right my assumption was that we are talking about a number of homogenous transactions. The assessment would be different if we are talking about a small number of high value heterogeneous transactions.
by exIFRS
17 Aug 2020, 18:35
Forum: IFRS-related topics
Topic: IAS 37 Provisions
Replies: 9
Views: 1811

Re: IAS 37 Provisions

I assume the numbers we are talking about are not material. In a way I think you are thinking about it the wrong way, a warranty is much like an allowance for doubtful debts, you are interested in the value of the balance sheet item, not the individual expenses. You have got to look at at IAS37.59 a...
by exIFRS
17 Aug 2020, 18:18
Forum: IFRS-related topics
Topic: Contribution to joint operation
Replies: 20
Views: 4432

Re: Contribution to joint operation

I have been slowly thinking about this as the discussion has gone on. I went down a couple of rabbit holes related to IFRS 11.21 and various mining arrangements I have seen, but in the end I think they don't apply. I agree with where you ended up, this feels like a loan outside of the joint arrangem...