Search found 3226 matches

by Marek Muc
22 Feb 2024, 18:02
Forum: IFRS-related topics
Topic: IAS 12 - Deferred taxes on investment value (consolidated FS)
Replies: 12
Views: 722

Re: IAS 12 - Deferred taxes on investment value (consolidated FS)

How do you think the parent will realise the DTA arising on its investment in the subsidiary?
by Marek Muc
21 Feb 2024, 17:31
Forum: IFRS-related topics
Topic: IAS 12 - Deferred taxes on investment value (consolidated FS)
Replies: 12
Views: 722

Re: IAS 12 - Deferred taxes on investment value (consolidated FS)

It seems that you're confusing realisation of deferred tax assets (DTA) by the subsidiary and the parent. It's the *parent* that potentially recognises DTA for the temporary difference arising on the investment, so you should be looking at: - availability of taxable income of the *parent*, and - whe...
by Marek Muc
20 Feb 2024, 23:41
Forum: IFRS-related topics
Topic: Revenue recognition under IFRS 15
Replies: 7
Views: 471

Re: Revenue recognition under IFRS 15

I find the scenario confusing to be honest. B acquires A, but we don't know from whom. And as part of consideration, A (the acquiree!) provides services to B (the acquirer)...
by Marek Muc
20 Feb 2024, 17:50
Forum: IFRS-related topics
Topic: Revenue recognition under IFRS 15
Replies: 7
Views: 471

Re: Revenue recognition under IFRS 15

For this transaction to be in scope of IFRS 15, there also must be a customer which is defined as a party that enters into a contract with an entity to obtain goods or services resulting from the entity’s ordinary activities, in return for a consideration (IFRS 15.6).
by Marek Muc
19 Feb 2024, 23:52
Forum: IFRS-related topics
Topic: IAS 12 - Deferred taxes on investment value (consolidated FS)
Replies: 12
Views: 722

Re: IAS 12 - Deferred taxes on investment value (consolidated FS)

Just had a quick look, but please have a look at the section below, does it answer the question?

https://ifrscommunity.com/knowledge-bas ... rangements
by Marek Muc
19 Feb 2024, 23:49
Forum: IFRS-related topics
Topic: Classification of Golf Course
Replies: 4
Views: 330

Re: Classification of Golf Course

IAS 16 for sure, you're running a golf course business
by Marek Muc
19 Feb 2024, 22:49
Forum: IFRS-related topics
Topic: IAS 8 - Change in capitalisation threshold
Replies: 2
Views: 259

Re: IAS 8 - Change in capitalisation threshold

It is a change in accounting policy but its impact must be immaterial by definition and hence applied prospectively. If the impact isn't immaterial, then you shouldn't have this policy in the first place because IAS 16 / IAS 38 don't have any practical expedient regading capitalisation threshold.
by Marek Muc
19 Feb 2024, 22:45
Forum: IFRS-related topics
Topic: Leases in service areas
Replies: 5
Views: 364

Re: Leases in service areas

Not really :)
by Marek Muc
19 Feb 2024, 22:43
Forum: After hours
Topic: Excel Vlookup function
Replies: 9
Views: 284

Re: Excel Vlookup function

Which solution worked best for you then?
by Marek Muc
16 Feb 2024, 20:44
Forum: IFRS-related topics
Topic: Equity investments held at cost?
Replies: 6
Views: 293

Re: Equity investments held at cost?

When applying this exception, Level 3 disclosures aren't necessary since there's no fair value measurement recognised at the reporting date. Regarding the convertible instruments you're considering, would it be reasonable to assume that their cost approximates their fair value even after 12 months?
by Marek Muc
16 Feb 2024, 20:40
Forum: General accounting and financial reporting discussion
Topic: Date of Authorization for Issue
Replies: 11
Views: 183

Re: Date of Authorization for Issue

I'm not saying that this isn't the commonly accepted practice. In the case of public companies, it's different because their final results are deemed market-sensitive information. My focus was more on the audits of privately owned companies.
by Marek Muc
16 Feb 2024, 20:36
Forum: After hours
Topic: Excel Vlookup function
Replies: 9
Views: 284

Re: Excel Vlookup function

For sure there is an automatic solution. But I'm not entirely clear on your question. Could you elaborate a bit more? Using example terms like 'customer' and 'outstanding balance' would help clarify your request.
by Marek Muc
16 Feb 2024, 11:08
Forum: IFRS-related topics
Topic: IFSR 16 - Prepayments
Replies: 10
Views: 1669

Re: IFSR 16 - Prepayments

@ramica - please start a new topic, describe the scenario, and explain what you're trying to achieve
by Marek Muc
15 Feb 2024, 20:39
Forum: IFRS-related topics
Topic: Equity investments held at cost?
Replies: 6
Views: 293

Re: Equity investments held at cost?

I don't think specific disclosure requirements exist for such cases. Making up these disclosures wouldn't make sense. Instead, I'd disclose that you used cost as an approximation of fair value and provide the rationale behind this decision.
by Marek Muc
15 Feb 2024, 20:34
Forum: General accounting and financial reporting discussion
Topic: Date of Authorization for Issue
Replies: 11
Views: 183

Re: Date of Authorization for Issue

I guess it's better to identify any issues during the brief period when the financial statements are 'frozen', rather than missing them entirely. Just to clarify, I'm not thinking about edge cases where the auditor is involved only after the financial statements are authorised. I'm talking about a s...
by Marek Muc
15 Feb 2024, 20:02
Forum: IFRS-related topics
Topic: Equity investments held at cost?
Replies: 6
Views: 293

Re: Equity investments held at cost?

This could stem from practices before implementation of IFRS 9. Under IAS 39 there was a clear exception allowing equity investments whose fair value couldn't be reliably measured to be carried at cost. IFRS 9 is stricter, but still offers a bit of flexibility (see IFRS 9.B5.2.3-B5.2.6)
by Marek Muc
15 Feb 2024, 19:19
Forum: General accounting and financial reporting discussion
Topic: Date of Authorization for Issue
Replies: 11
Views: 183

Re: Date of Authorization for Issue

In terms of adjusting events, or errors in the financial statements?
by Marek Muc
15 Feb 2024, 18:50
Forum: IFRS-related topics
Topic: Queries on Subleasing
Replies: 4
Views: 282

Re: Queries on Subleasing

Provide more details about the transaction, please
by Marek Muc
15 Feb 2024, 18:46
Forum: IFRS-related topics
Topic: Equity method - convertible preference shares
Replies: 10
Views: 407

Re: Equity method - convertible preference shares

Well, there must be a reason why you haven't converted into ordinary shares yet. For example, to what extent does the yield on these preference shares depend on investee's results? What are the current voting rights attaching to them? What are the conversion terms?
by Marek Muc
15 Feb 2024, 18:42
Forum: General accounting and financial reporting discussion
Topic: Date of Authorization for Issue
Replies: 11
Views: 183

Re: Date of Authorization for Issue

These questions assume that the same day sign-off is the default way to go. In my early days as a trainee auditor, I was struck by the expectation for same-day sign-offs. It seemed more logical to allow auditors several days with the finalised financial statements. This would enable a thorough final...
by Marek Muc
14 Feb 2024, 17:13
Forum: IFRS-related topics
Topic: Equity method - convertible preference shares
Replies: 10
Views: 407

Re: Equity method - convertible preference shares

Leo, you don't understand the question being asked I'm afraid...
by Marek Muc
14 Feb 2024, 17:09
Forum: IFRS-related topics
Topic: Equity method exemptions
Replies: 18
Views: 1108

Re: Equity method exemptions

Well, this approach may have worked until like 19th century when there were no complex financial instruments...
by Marek Muc
14 Feb 2024, 17:08
Forum: IFRS-related topics
Topic: Employee Benefits- current service costs
Replies: 3
Views: 266

Re: Employee Benefits- current service costs

You can also add curtailments and settlements to this equation, and current service cost of course :)
by Marek Muc
14 Feb 2024, 17:06
Forum: IFRS-related topics
Topic: Equity method - convertible preference shares
Replies: 10
Views: 407

Re: Equity method - convertible preference shares

Tough judgement to make! I'd also refer to IAS 28.12 which says the interest in an associate is determined solely on the basis of existing ownership interests and does not reflect the possible exercise or conversion of potential voting rights. It appears that these convertible preference shares don'...
by Marek Muc
14 Feb 2024, 16:57
Forum: IFRS-related topics
Topic: Leases in service areas
Replies: 5
Views: 364

Re: Leases in service areas

I'd check if the infrastructure assets are clearly identified and if you're acquiring their full capacity. If these conditions aren't met, it's likely not a lease, see https://ifrscommunity.com/knowledge-bas ... -of-assets
by Marek Muc
14 Feb 2024, 16:52
Forum: IFRS-related topics
Topic: Equity method exemptions
Replies: 18
Views: 1108

Re: Equity method exemptions

So you keep derivatives off balance sheet, for example? ;)
by Marek Muc
14 Feb 2024, 16:43
Forum: IFRS-related topics
Topic: IAS 36 Decision tree in the Knowledge Base
Replies: 8
Views: 341

Re: IAS 36 Decision tree in the Knowledge Base

Does the leased ('underlying') asset generate independent cash inflows?