Search found 3228 matches

by Marek Muc
12 Mar 2024, 17:50
Forum: IFRS-related topics
Topic: Time deposits
Replies: 5
Views: 345

Re: Time deposits

When designing the layout of SoFP, consider what would be most helpful while satisfying the minimum requirements in IAS 1.54. For instance, you can present the following line items:
- Cash & cash equivalents
- Term deposits
- Trade receivables
- Bonds
- Other financial assets
by Marek Muc
12 Mar 2024, 17:43
Forum: IFRS-related topics
Topic: How to distinguish an entity preparing accounts under IFRS 10 para 27-33 or IAS 27 fair value option
Replies: 5
Views: 55

Re: How to distinguish an entity preparing accounts under IFRS 10 para 27-33 or IAS 27 fair value option

See IAS 27.8A :) An investment entity that is required, throughout the current period and all comparative periods presented, to apply the exception to consolidation for all of its subsidiaries in accordance with paragraph 31 of IFRS 10 presents separate financial statements as its only financial sta...
by Marek Muc
12 Mar 2024, 17:41
Forum: IFRS-related topics
Topic: IAS 40 Cost model with annual impairment
Replies: 3
Views: 370

Re: IAS 40 Cost model with annual impairment

Their approach is correct. Read more about impairment at https://ifrscommunity.com/knowledge-bas ... al-assets/
by Marek Muc
07 Mar 2024, 18:33
Forum: IFRS-related topics
Topic: IFRS 16 for underdeveloped land
Replies: 4
Views: 369

Re: IFRS 16 for underdeveloped land

I'm not familiar with arrangements like these. Based on your description, it seems that straight-line P/L recognition for non-refundable lease payments would be the best approach. Ultimately, it's the responsibility of the lessee to utilise the land efficiently. Considering the development potential...
by Marek Muc
07 Mar 2024, 17:44
Forum: IFRS-related topics
Topic: IAS 24 Related Party Disclosures
Replies: 2
Views: 330

Re: IAS 24 Related Party Disclosures

The list provided in IAS 24.9 is not exhaustive, and an entity may identify, for example, a director’s brother as a related party.
by Marek Muc
07 Mar 2024, 17:41
Forum: IFRS-related topics
Topic: IAS 40 Land and buildings
Replies: 5
Views: 443

Re: IAS 40 Land and buildings

yes
by Marek Muc
07 Mar 2024, 17:38
Forum: IFRS-related topics
Topic: IFRS 16 for underdeveloped land
Replies: 4
Views: 369

Re: IFRS 16 for underdeveloped land

Please provide a detailed explanation of the terms of this arrangement, they aren't clear to me.
by Marek Muc
07 Mar 2024, 17:12
Forum: IFRS-related topics
Topic: IFRS 16 Variable EIR
Replies: 3
Views: 335

Re: IFRS 16 Variable EIR

These are variable lease payments and you'll need to reassess the lease liability at reach date the rate resets: https://ifrscommunity.com/knowledge-base/ifrs-16-recognition-and-measurement-of-leases/#variable-lease-payments https://ifrscommunity.com/knowledge-base/ifrs-16-recognition-and-measuremen...
by Marek Muc
07 Mar 2024, 17:10
Forum: IFRS-related topics
Topic: Income Provision for Trade Payables
Replies: 2
Views: 300

Re: Income Provision for Trade Payables

The entry you proposed seems odd! The statute of limitations, as per your local law, may soon apply. Once it does, the right to legal action for debt recovery expires and you'll be able to derecognise the liability and recognise a gain in P/L. BTW, why the creditors aren't actively seeking payment?
by Marek Muc
05 Mar 2024, 15:39
Forum: IFRS-related topics
Topic: What constitutes "control" before goods are sold
Replies: 6
Views: 3569

Re: What constitutes "control" before goods are sold

Please start a new topic describing the situation you're dealing with.
by Marek Muc
05 Mar 2024, 15:38
Forum: IFRS-related topics
Topic: Fair Value of Investment Property
Replies: 6
Views: 433

Re: Fair Value of Investment Property

Always consider the 'highest and best use' regardless of the valuation method. Also, remember that for assets valued at fair value, there are no impairment losses, only changes in fair value. If two valuation techniques yield significantly different results, you need to recalibrate one of them. Sinc...
by Marek Muc
01 Mar 2024, 17:03
Forum: IFRS-related topics
Topic: Fair Value of Investment Property
Replies: 6
Views: 433

Re: Fair Value of Investment Property

In principle, the valuation technique you select should yield the same fair value. If the income approach yields much higher fair value compared to the market approach, it means that the necessary infrastructure investments and related risks might not have been adequately accounted for in the income...
by Marek Muc
01 Mar 2024, 16:15
Forum: IFRS-related topics
Topic: Fair Value of Investment Property
Replies: 6
Views: 433

Re: Fair Value of Investment Property

Fair value only reflects market conditions, meaning your company's financial issues shouldn't affect land valuation. Unless these issues stem directly from the land, like challenges in securing building permits etc. In such cases, these challenges should be reflected in both income and market valuat...
by Marek Muc
29 Feb 2024, 16:59
Forum: IFRS-related topics
Topic: Contra revenue vs expense
Replies: 13
Views: 861

Re: Contra revenue vs expense

Nothing specific really. I'd say that, in IFRS 15 terms, you need to determine whether your company acts as an agent between the stationery seller and your client, by applying this guidance: https://ifrscommunity.com/knowledge-bas ... ss-vs-net/
by Marek Muc
29 Feb 2024, 16:56
Forum: IFRS-related topics
Topic: IAS 16 - PPE transfer to Inventory
Replies: 7
Views: 512

Re: IAS 16 - PPE transfer to Inventory

I see, so some scrap parts are being repurposed. This isn't covered by IFRS, and I'd suggest estimating the proportion of these rods in the total carrying amount of PP&E, and then reclassifying this amount to inventory.
by Marek Muc
29 Feb 2024, 16:53
Forum: General accounting and financial reporting discussion
Topic: Depreciation of Diagnostic Laboratory Equipment
Replies: 8
Views: 503

Re: Depreciation of Diagnostic Laboratory Equipment

Tax depreciation rates differ from IFRS depreciation rates in their purpose, so don't depend heavily on tax rates. I doubt that this specific asset class has been analysed in terms of accounting depreciation rates. But you need to estimate an entity-specific useful life anyway. For example, a luxury...
by Marek Muc
29 Feb 2024, 10:35
Forum: General accounting and financial reporting discussion
Topic: Depreciation of Diagnostic Laboratory Equipment
Replies: 8
Views: 503

Re: Depreciation of Diagnostic Laboratory Equipment

I've moved this topic to 'General accounting and financial reporting discussion'. Please don't post general questions under 'IFRS-related topics', thanks!
by Marek Muc
28 Feb 2024, 19:43
Forum: IFRS-related topics
Topic: Client Money Question
Replies: 3
Views: 344

Re: Client Money Question

I'm reconsidering my position :) Given that money is fungible, I agree with DJP's view. You should recognise these funds as cash for a day. The accounting would likely be DR Cash / CR Liabilities upon receipt, followed by DR Liabilities / CR Cash when routing them to client accounts.
by Marek Muc
28 Feb 2024, 19:32
Forum: IFRS-related topics
Topic: Contra revenue vs expense
Replies: 13
Views: 861

Re: Contra revenue vs expense

No, it's simply an expense incurred in providing the service.
by Marek Muc
28 Feb 2024, 19:30
Forum: IFRS-related topics
Topic: Client Money Question
Replies: 3
Views: 344

Re: Client Money Question

If the use of these funds is contractually predetermined and they are transferred to client accounts within a day, it seems there's no control or benefit for the corporation.
by Marek Muc
28 Feb 2024, 19:11
Forum: IFRS-related topics
Topic: IAS 16 - PPE transfer to Inventory
Replies: 7
Views: 512

Re: IAS 16 - PPE transfer to Inventory

Could you clarify what is meant by 'change in nature of use'? Classifying it as inventory may not be accurate. It could be more appropriate to consider it as an asset held for sale as per IFRS 5, or as an investment property in line with IAS 40.
by Marek Muc
28 Feb 2024, 19:08
Forum: IFRS-related topics
Topic: Direct equity investment - transaction price & fair value
Replies: 10
Views: 684

Re: Direct equity investment - transaction price & fair value

If AIM is considered an active market, then IFRS 13.80 applies, so you wouldn't be able to use Level 2/3 inputs.
by Marek Muc
28 Feb 2024, 19:03
Forum: IFRS-related topics
Topic: IFRS 16- Lease Modification
Replies: 1
Views: 262

Re: IFRS 16- Lease Modification

Depending on the specific circumstances, lease modifications can either be accounted for as a new lease or an adjustment to the pre-existing lease. See https://ifrscommunity.com/knowledge-bas ... fications/
by Marek Muc
27 Feb 2024, 16:40
Forum: IFRS-related topics
Topic: Definition of ' Related Party'
Replies: 7
Views: 544

Re: Definition of ' Related Party'

Children and spouses are close family members under IAS 24.9
by Marek Muc
26 Feb 2024, 17:15
Forum: IFRS-related topics
Topic: Contra revenue vs expense
Replies: 13
Views: 861

Re: Contra revenue vs expense

Can you provide more details on the nature of the arrangement and recharged expenses, Nowim?
by Marek Muc
26 Feb 2024, 17:13
Forum: IFRS-related topics
Topic: Direct equity investment - transaction price & fair value
Replies: 10
Views: 684

Re: Direct equity investment - transaction price & fair value

Do either of you know if AIM is regarded as an active market? I.e. 'a market in which transactions for the asset take place with sufficient frequency and volume to provide pricing information on an ongoing basis.'
by Marek Muc
26 Feb 2024, 17:07
Forum: After hours
Topic: Congratulations
Replies: 5
Views: 9918

Re: Congratulations

Hi Hassen, looking forward to your contributions to the community :)
by Marek Muc
23 Feb 2024, 19:21
Forum: IFRS-related topics
Topic: Definition of ' Related Party'
Replies: 7
Views: 544

Re: Definition of ' Related Party'

These companies are related, because Mr Y controls B and his close family member is a member of the key management personnel of A (IAS 24.9(b)(vii)).