Search found 3228 matches

by Marek Muc
06 Feb 2024, 20:44
Forum: IFRS-related topics
Topic: Regulated prices
Replies: 6
Views: 290

Re: Regulated prices

Look into IFRS 14 and the IASB's project: https://www.ifrs.org/content/dam/ifrs/p ... an2021.pdf

Could you share details about the price regulation system your company operates under?
by Marek Muc
06 Feb 2024, 20:41
Forum: IFRS-related topics
Topic: Equity method exemptions
Replies: 18
Views: 1108

Re: Equity method exemptions

The exemption in IAS 27.8 is optional so you could prepare two sets of financial statements: separate under IAS 27 and 'economic interest' under IAS 28. But if the goal is for you to account for the associates using the equity method, you can prepare only the separate financial statements and opt fo...
by Marek Muc
06 Feb 2024, 20:19
Forum: IFRS-related topics
Topic: IAS 36 Value in Use vs Fair Value Using Income Approach
Replies: 5
Views: 387

Re: IAS 36

There might some manoeuvring involved given that they switched from FV to ViU for CGUs: fv viu.PNG If they test brands separately from other CGU assets, they should include brand royalty payments in the ViU cash flow assumptions. It's unclear if this was done, as their disclosures are quite skimp an...
by Marek Muc
05 Feb 2024, 17:55
Forum: IFRS-related topics
Topic: IAS 36 Value in Use vs Fair Value Using Income Approach
Replies: 5
Views: 387

Re: IAS 36

Thanks Ketan for this detailed explanation. I think we can summarise this as follows: ViU is an entity-specific measure, whereas FV is a market-based measure, even if determined using the income approach. Is this a public entity that you're looking at, JRSB? It would be useful to know more about the...
by Marek Muc
02 Feb 2024, 19:14
Forum: IFRS-related topics
Topic: IFRS 3 - Contingent consideration (Earn-Out) - seller side accounting
Replies: 4
Views: 559

Re: IFRS 3 - Contingent consideration (Earn-Out) - seller side accounting

I agree with JRSB. The reference here is to IFRS 10.B98 which mandates recognising the consideration at fair value. Since you've mentioned only partially selling your interest (but assuming you've lost control), make sure to recognise any retained investment in the former subsidiary at its fair value.
by Marek Muc
02 Feb 2024, 00:19
Forum: General accounting and financial reporting discussion
Topic: Deferred tax in business combinations
Replies: 7
Views: 699

Re: Deferred tax in business combinations

You're mixing up deferred tax recognised on fair value adjustments with deferred tax arising on goodwill.
by Marek Muc
01 Feb 2024, 15:15
Forum: IFRS-related topics
Topic: IAS 12.4A Pillar Two reform
Replies: 6
Views: 591

Re: IAS 12.4A

As you noted, the exception 4A is mandatory, so Pillar Two consequences cannot be reflected in the calculation of deferred tax
by Marek Muc
31 Jan 2024, 17:31
Forum: General accounting and financial reporting discussion
Topic: Accounting AI Software Startup question
Replies: 4
Views: 720

Re: Accounting AI Software Startup question

Automating the disclosure checklist would undoubtedly be a more challenging task, yet as the saying goes, who dares wins ;) Really appreciate your help again. Would love to discuss this further on a call and get your insights / views on it! I do offer private consulting services. Please feel free to...
by Marek Muc
31 Jan 2024, 17:26
Forum: General accounting and financial reporting discussion
Topic: Useful life of bitcoin machines
Replies: 10
Views: 1005

Re: Useful life of bitcoin machines

Not experts at bitcoin mining that is?
by Marek Muc
31 Jan 2024, 17:25
Forum: IFRS-related topics
Topic: IFRS 16 and IAS 19
Replies: 9
Views: 1717

Re: IFRS 16 and IAS 19

I'd say IFRS 16 and IAS 19 have a similar level of specificity.
Thanks for sharing the excerpt. I find this PWC's guidance rather broad and unclear tbh.
by Marek Muc
31 Jan 2024, 17:19
Forum: IFRS-related topics
Topic: IAS 12.4A Pillar Two reform
Replies: 6
Views: 591

Re: IAS 12.4A

Please provide more details about the scenario
by Marek Muc
30 Jan 2024, 19:33
Forum: General accounting and financial reporting discussion
Topic: Useful life of bitcoin machines
Replies: 10
Views: 1005

Re: Useful life of bitcoin machines

I'd focus at technical obsolescence as JRSB suggested. I'm not an expert in cryptocurrencies, but it's my understanding that crypto mining demands increasingly higher computing power as the ledgers expand. This implies that the same computing resources will yield lesser results, say, a year from now...
by Marek Muc
30 Jan 2024, 19:28
Forum: General accounting and financial reporting discussion
Topic: Accounting AI Software Startup question
Replies: 4
Views: 720

Re: Accounting AI Software Startup question

Automating the disclosure checklist could be a place to start. The idea is to upload drafted financial statements, and the tool automatically highlights any missing disclosures. This could be particularly beneficial for audit firms. For reference, here is what a typical checklist looks like in a sta...
by Marek Muc
30 Jan 2024, 18:42
Forum: IFRS-related topics
Topic: Equity method exemptions
Replies: 18
Views: 1108

Re: Equity method exemptions

Your choices under IAS 27.10 have no impact on the accounting in the consolidated financial statements of your parent. So yes - they would have to reverse your entries under IFRS 9. PS. Why not opt for the simpler solution, i.e. the cost method under IAS 27.10(a) in your separate financial statements?
by Marek Muc
30 Jan 2024, 18:24
Forum: IFRS-related topics
Topic: IFRS 16 and IAS 19
Replies: 9
Views: 1717

Re: IFRS 16 and IAS 19

Thanks Ketan! Initially, I too considered crediting the depreciation expense. However, I'm not entirely convinced about this approach. Under IFRS 16, we're required to recognise RoU depreciation expense. If we follow your suggestion, we'd end up with a RoU asset lacking its corresponding depreciatio...
by Marek Muc
29 Jan 2024, 16:57
Forum: General accounting and financial reporting discussion
Topic: Preparing the year end accounts process
Replies: 2
Views: 979

Re: Preparing the year end accounts process

You'll find the process is the same irrespective of the accounting framework. I recommend you search for existing resources online and then post any specific questions you have here.
by Marek Muc
29 Jan 2024, 16:54
Forum: General accounting and financial reporting discussion
Topic: Entries for fair value adjustments to consolidate
Replies: 6
Views: 1150

Re: Entries for fair value adjustments to consolidate

It'll depend on the consolidation software in use. For instance, when a new subsidiary completes a consolidation package, consolidation software will automatically integrate this data into the consolidation process, eliminating the need for manual recognition of the subsidiary's net assets (at least...
by Marek Muc
29 Jan 2024, 16:49
Forum: IFRS-related topics
Topic: IFRS 16 and IAS 19
Replies: 9
Views: 1717

Re: IFRS 16 and IAS 19

I'm struggling to understand your explanation of the two methods to be honest. Let's say the RoU depreciation for the head lease (the one between the employer and an external party) is CU 100 monthly, which is the same as market rent between a landlord and an unrelated tenant. Could you provide some...
by Marek Muc
27 Jan 2024, 10:07
Forum: IFRS-related topics
Topic: IFRS 16 and IAS 19
Replies: 9
Views: 1717

Re: IFRS 16 and IAS 19

I've now come up with a better approach to represent this employee benefit. I'd keep the RoU depreciation as it is, and instead recognise an estimated rental income based on market rates. This would look like: Dr Employee benefits Cr Rental income Again, this isn't explicitly required by IAS 19, so ...
by Marek Muc
26 Jan 2024, 21:06
Forum: IFRS-related topics
Topic: Loss-making contract IFRS 15
Replies: 15
Views: 3393

Re: Loss-making contract IFRS 15

Leo, this topic dates back over three years, so start a new one please. Make sure to outline the scenario you're dealing with, including why an entity would choose to continue fulfilling a contract it's not obligated to, especially knowing it will result in a loss.
by Marek Muc
26 Jan 2024, 20:15
Forum: IFRS-related topics
Topic: IAS 1.90
Replies: 3
Views: 998

Re: IAS 1.90

I'd even say that it's always deferred tax in OCI, hard to imagine any of the OCI items having an impact on current income tax
by Marek Muc
26 Jan 2024, 19:54
Forum: IFRS-related topics
Topic: IFRS 16 and IAS 19
Replies: 9
Views: 1717

Re: IFRS 16 and IAS 19

Assuming the conditions for a sub-lease are not satisfied and RoU for the apartment isn’t derecognised, and the employee lives in the apartment rent-free, first we need to account for the depreciation of the RoU asset: DR: Depreciation Expense CR: Accumulated RoU depreciation The key issue then is w...
by Marek Muc
25 Jan 2024, 14:29
Forum: IFRS-related topics
Topic: IFRS 15 Contract Liability
Replies: 11
Views: 2636

Re: IFRS 15 Contract Liability

IFRS 15.15 is applicable only in contracts not meeting IFRS 15 criteria.

B45 and B46 acknowledge that "customers may not exercise all of their contractual rights" and require entities to estimate the breakage and recognise it as revenue
by Marek Muc
25 Jan 2024, 14:26
Forum: IFRS-related topics
Topic: IFRS accounting policy choices
Replies: 6
Views: 1499

Re: IFRS accounting policy choices

Re. the document DJP shared, classification options under IFRS 9 don't really qualify as accounting policy choices. On the other hand, they've missed options under IAS 27.10. It's also worth considering the presentation options for financial statements, such as P/L and OCI in either one or two state...
by Marek Muc
25 Jan 2024, 14:15
Forum: IFRS-related topics
Topic: Contractual terms change - Revenue recognition
Replies: 5
Views: 1465

Re: Contractual terms change - Revenue recognition

The implementation of a formal right of return represents new contractual terms rather than a change in accounting policy. Therefore, the question at hand is if the prior accounting policy (i.e., under previous contractual terms) was incorrect. And the first paragraph in this section should answer t...
by Marek Muc
24 Jan 2024, 17:45
Forum: IFRS-related topics
Topic: Contractual terms change - Revenue recognition
Replies: 5
Views: 1465

Re: Contractual terms change - Revenue recognition

It's unclear how the company has reportedly changed its accounting policy. Could you clarify what the previous policy was, and what the current one is? It's important not to mix up changes in accounting policy with changes in business practice https://ifrscommunity.com/knowledge-base/accounting-poli...
by Marek Muc
24 Jan 2024, 17:42
Forum: IFRS-related topics
Topic: IFRS accounting policy choices
Replies: 6
Views: 1499

Re: IFRS accounting policy choices

I'm also not familiar with such a list, but since I haven't had the need to look for one, it's possible that it does exist :)
by Marek Muc
24 Jan 2024, 17:37
Forum: IFRS-related topics
Topic: IFRS 15 Contract Liability
Replies: 11
Views: 2636

Re: IFRS 15 Contract Liability

No, in some instances payments effectively become non-refundable when customers cease their purchases from the company entirely