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?
Search found 3228 matches
- 06 Feb 2024, 20:44
- Forum: IFRS-related topics
- Topic: Regulated prices
- Replies: 6
- Views: 290
- 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...
- 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...
- 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...
- 02 Feb 2024, 21:07
- Forum: General accounting and financial reporting discussion
- Topic: Deferred tax in business combinations
- Replies: 7
- Views: 699
Re: Deferred tax in business combinations
That's because deferred tax isn't recognised on goodwill
https://ifrscommunity.com/knowledge-bas ... d-goodwill
https://ifrscommunity.com/knowledge-bas ... d-goodwill
- 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.
- 02 Feb 2024, 19:05
- Forum: General accounting and financial reporting discussion
- Topic: Deferred tax in business combinations
- Replies: 7
- Views: 699
Re: Deferred tax in business combinations
Refer to the example in this section:
https://ifrscommunity.com/knowledge-bas ... g-goodwill
https://ifrscommunity.com/knowledge-bas ... g-goodwill
- 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.
- 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
- 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...
- 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?
- 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.
Thanks for sharing the excerpt. I find this PWC's guidance rather broad and unclear tbh.
- 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
- 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...
- 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...
- 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?
- 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...
- 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.
- 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...
- 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...
- 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 ...
- 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.
- 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
- 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...
- 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
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
- 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...
- 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...
- 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...
- 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
- 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