Search found 3228 matches
- 31 Jan 2021, 17:18
- Forum: IFRS-related topics
- Topic: Practical approaches to lease term under IFRS 16
- Replies: 10
- Views: 3342
Re: Practical approaches to lease term under IFRS 16
I totally agree that they should redraft IFRS 16 because is not easy to reconcile the agenda decision with IFRS 16. I even wrote a comment letter on this: http://eifrs.ifrs.org/eifrs/comment_letters//538/538_25796_MarekMucIFRScommunitycom_0_commentletterIFRScommunitycomIFRS16leaseterm.pdf So in the ...
- 31 Jan 2021, 17:03
- Forum: IFRS-related topics
- Topic: IAS 21 - selection of exchange rates source in practice
- Replies: 7
- Views: 2461
Re: IAS 21 - selection of exchange rates source in practice
IAS 21 does actually cover this briefly in par. 26: When several exchange rates are available, the rate used is that at which the future cash flows represented by the transaction or balance could have been settled if those cash flows had occurred at the measurement date. can you describe your case s...
- 31 Jan 2021, 16:56
- Forum: IFRS-related topics
- Topic: IAS28 - entity consolidated by equity method
- Replies: 13
- Views: 3656
Re: IAS28 - entity consolidated by equity method
and see here for equity transactions of associate/joint-venture:
https://ifrscommunity.com/knowledge-bas ... nt-venture
https://ifrscommunity.com/knowledge-bas ... nt-venture
- 31 Jan 2021, 11:35
- Forum: IFRS-related topics
- Topic: ias 24
- Replies: 8
- Views: 2487
Re: ias 24
https://ifrscommunity.com/knowledge-bas ... d-entities
What kind of difficulties do you have with identifying or disclosing transactions with key management personnel?
What kind of difficulties do you have with identifying or disclosing transactions with key management personnel?
- 30 Jan 2021, 09:43
- Forum: IFRS-related topics
- Topic: IAS 23
- Replies: 2
- Views: 992
- 29 Jan 2021, 16:00
- Forum: IFRS-related topics
- Topic: IAS28 - entity consolidated by equity method
- Replies: 13
- Views: 3656
Re: IAS28 - entity consolidated by equity method
this entry by child A is wrong,
https://ifrscommunity.com/knowledge-bas ... g-interest
https://ifrscommunity.com/knowledge-bas ... g-interest
- 29 Jan 2021, 13:02
- Forum: IFRS-related topics
- Topic: IFRS 16 revaluation model
- Replies: 2
- Views: 1053
Re: IFRS 16 revaluation model
and this will obviously be a change in accounting policy applied retrospectively under IAS 8
plus you need to come up with other 'official' reason (see IAS 8.14b)
plus you need to come up with other 'official' reason (see IAS 8.14b)
- 29 Jan 2021, 11:58
- Forum: IFRS-related topics
- Topic: IAS28 - entity consolidated by equity method
- Replies: 13
- Views: 3656
Re: IAS28 - entity consolidated by equity method
I don't understand what you're trying to do. Do you want to make a retrospective correction of error or continue with current policy?
- 29 Jan 2021, 11:32
- Forum: IFRS-related topics
- Topic: IAS28 - entity consolidated by equity method
- Replies: 13
- Views: 3656
Re: IAS28 - entity consolidated by equity method
you could argue that it's correct to have 400 in assets, but 400 in equity of the group as well
showing 80 as NCI makes no sense I'm afraid
showing 80 as NCI makes no sense I'm afraid
- 29 Jan 2021, 11:08
- Forum: IFRS-related topics
- Topic: IAS28 - entity consolidated by equity method
- Replies: 13
- Views: 3656
Re: IAS28 - entity consolidated by equity method
simplistically speaking 40% * 800, but in fact it depends on how much you paid for the shareholding in the first place
- 29 Jan 2021, 10:13
- Forum: IFRS-related topics
- Topic: Incremental borrowing rate | IFRS 16
- Replies: 18
- Views: 17518
Re: Incremental borrowing rate | IFRS 16
Good question. My initial thought is that a new player wouldn't be reliable enough to use their input in the accounts. Also I think that many entities simply use their actual borrowing rate and don't need additional paid service. I don't know what's available in Bloomberg or Reuters paid data feeds,...
- 29 Jan 2021, 09:51
- Forum: IFRS-related topics
- Topic: Decommissioning liability
- Replies: 17
- Views: 4611
Re: Decommissioning liability
In my experience, a risk-free rate is used if the entity looks for a simple solution. E.g. for decommissioning liability you can say that the risk and uncertainty is built into the cash flow part. Whereas in WACC you have expected return on equity built in, so it's harder to reconcile WACC with conc...
- 28 Jan 2021, 15:01
- Forum: General accounting and financial reporting discussion
- Topic: Reporting framework
- Replies: 10
- Views: 4266
Re: Reporting framework
yep, 've seen this accouncement...
- 28 Jan 2021, 14:55
- Forum: General accounting and financial reporting discussion
- Topic: Reporting framework
- Replies: 10
- Views: 4266
Re: Reporting framework
didn't know that! this is something the EU should do as well, and even it wouldn't be a bad idea for the IASB to incorporate something like this into full IFRS
- 28 Jan 2021, 14:46
- Forum: General accounting and financial reporting discussion
- Topic: Reporting framework
- Replies: 10
- Views: 4266
Re: Reporting framework
I think that there should be one more solution for SMEs that are subsidiaries of listed entities: full IFRS but with limited disclosure requirements. This way they would be able to use the same accounting policies as the group, but without the onerous disclosure requirements
- 28 Jan 2021, 13:04
- Forum: General accounting and financial reporting discussion
- Topic: Reporting framework
- Replies: 10
- Views: 4266
Re: Reporting framework
in Poland, for example, IFRS for SME is not endorsed, SMEs must choose between full IFRS and Polish GAAP
- 28 Jan 2021, 09:32
- Forum: General accounting and financial reporting discussion
- Topic: Reporting framework
- Replies: 10
- Views: 4266
Re: Reporting framework
if your local law allows it and you satisfy the definition of SME, then you can do it
https://cdn.ifrs.org/-/media/feature/su ... ule-35.pdf
https://cdn.ifrs.org/-/media/feature/su ... ule-35.pdf
- 26 Jan 2021, 12:37
- Forum: IFRS-related topics
- Topic: Common control transaction
- Replies: 8
- Views: 2935
Re: Common control transaction
I see, I would answer that this impairment charge never showed up in consolidated financial statements of A before, so it makes sense that it will have an impact now. The payment of salary is a recurring transaction that happens every month (numbers were only there for illustration) so cant really s...
- 26 Jan 2021, 12:20
- Forum: IFRS-related topics
- Topic: Common control transaction
- Replies: 8
- Views: 2935
Re: Common control transaction
Hi Nauman, glad to see you back :) I assume we're talking about consolidated accounts of A. Yes I would show a charge of 250 to equity representing capital distribution to the shareholder. You will not see any impact on consolidated P&L of A So effectively you should see the following impact on ...
- 26 Jan 2021, 11:53
- Forum: IFRS-related topics
- Topic: Goodwill impairment testing
- Replies: 2
- Views: 906
Re: Goodwill impairment testing
it can be a bit tricky, the exercise depends on how you measured the NCI: https://ifrscommunity.com/knowledge-base/business-combination-accounting/#measurement-of-non-controlling-interest fortunately IAS 36 deliberates a bit on this matter (see appendix C of IAS 36 and example 7) eg.C4 of IAS 36 If ...
- 25 Jan 2021, 16:05
- Forum: IFRS-related topics
- Topic: EIR calculation based on success rate
- Replies: 11
- Views: 2649
Re: EIR calculation based on success rate
I sometimes wonder whether I should wait some time before replying to a topic to let others have some fun
- 25 Jan 2021, 15:51
- Forum: IFRS-related topics
- Topic: EIR calculation based on success rate
- Replies: 11
- Views: 2649
Re: EIR calculation based on success rate
thanks DJP!
- 25 Jan 2021, 15:40
- Forum: IFRS-related topics
- Topic: EIR calculation based on success rate
- Replies: 11
- Views: 2649
Re: EIR calculation based on success rate
then it's a transaction cost that is part of the EIR as it's clearly incremental
- 25 Jan 2021, 15:04
- Forum: IFRS-related topics
- Topic: EIR calculation based on success rate
- Replies: 11
- Views: 2649
Re: EIR calculation based on success rate
you need to distinguish between transaction costs and fees, see defined terms in appendix A to IFRS 9: effective interest rate - [...] The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate (see paragraph...
- 25 Jan 2021, 14:43
- Forum: IFRS-related topics
- Topic: EIR calculation based on success rate
- Replies: 11
- Views: 2649
Re: EIR calculation based on success rate
PS. to be clear: as expenses on scoring and verification of potential borrowers are paid irrespective of whether a loan is originated or not, they should be expensed in P/L immediately IMO
- 25 Jan 2021, 14:32
- Forum: IFRS-related topics
- Topic: EIR calculation based on success rate
- Replies: 11
- Views: 2649
Re: EIR calculation based on success rate
Hi, those expenses should be assessed against the definition of transaction costs: Incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or financial liability (see paragraph B5.4.8). An incremental cost is one that would not have been incurred i...
- 22 Jan 2021, 15:07
- Forum: General accounting and financial reporting discussion
- Topic: Gross profit or gain on sale of PP&E
- Replies: 8
- Views: 4076
Re: Gross profit or gain on sale of PP&E
no wonder
but this approach is also acceptable IMO so nobody's going to go to prison
but this approach is also acceptable IMO so nobody's going to go to prison
- 22 Jan 2021, 14:50
- Forum: General accounting and financial reporting discussion
- Topic: Gross profit or gain on sale of PP&E
- Replies: 8
- Views: 4076
Re: Gross profit or gain on sale of PP&E
but under the second approach, you would treat the land as PP&E that is sold together with inventory (i.e. new building),
so the cost of sales would not include cost of land, because the sale of land would be shown as disposal of non-current assets together with allocated proceeds
so the cost of sales would not include cost of land, because the sale of land would be shown as disposal of non-current assets together with allocated proceeds
- 21 Jan 2021, 13:40
- Forum: IFRS-related topics
- Topic: Equity under FVTOCI
- Replies: 4
- Views: 1909
Re: Equity under FVTOCI
typical question from management
the investment needs to be remeasured at the derecognition date, through OCI, so there won't be any gain in P&L unfortunately
the investment needs to be remeasured at the derecognition date, through OCI, so there won't be any gain in P&L unfortunately
- 21 Jan 2021, 11:42
- Forum: IFRS-related topics
- Topic: IFRS 9 - Calculating EIR on Overdrafts
- Replies: 1
- Views: 982
Re: IFRS 9 - Calculating EIR on Overdrafts
hi, this is similar to revolving credit facilities that we discussed some time ago:
viewtopic.php?f=4&t=200
the conclusion was that interest is accrued on straight-line basis and any fees are amortised over the duration of credit facility
viewtopic.php?f=4&t=200
the conclusion was that interest is accrued on straight-line basis and any fees are amortised over the duration of credit facility