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It appears to be a lease, and you have the option to apply either IAS 38 or IFRS 16, as outlined in IFRS 16.4 (most entities opt for IAS 38). For a licence spanning five years, you should recognise a liability and related intangible asset covering the entire period, taking into account that these fu...

Yes, geographical. Take, for instance, a Tesco store in London: its revenue is independent from the cash inflows of another store, say, in Manchester.

Could you please share the most relevant disclosures you've come across?

I've moved this topic to 'General accounting and financial reporting discussion'. Please don't post local law questions under 'IFRS-related topics', thanks!

I'm not sure what kind of adjustment you have in mind, can you clarify a bit more?

Retail stores typically have different customer bases, so in principle they should be treated as separate CGUs due to independent cash *inflows*. However, companies often consolidate CGUs, as tracking hundreds of small ones is practically challenging. You could look at the financial statements of pu...

A similar scenario is discussed in IFRS 16.B46-47. To me, it seems possible to avoid sale and leaseback accounting if the initial contract with lessor 'A' is made just before exercising the purchase option and entering into the SALT with lessor B.

yes

Orange's Polish subsidiary classifies such funds as cash equivalents:
https://www.orange-ir.pl/wp-content/upl ... df#page=48

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

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...

Their approach is correct. Read more about impairment at https://ifrscommunity.com/knowledge-bas ... al-assets/

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...

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.

yes

Please provide a detailed explanation of the terms of this arrangement, they aren't clear to me.

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...

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?

Please start a new topic describing the situation you're dealing with.

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...

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...

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...

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/

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.

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...

I've moved this topic to 'General accounting and financial reporting discussion'. Please don't post general questions under 'IFRS-related topics', thanks!

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.

No, it's simply an expense incurred in providing the service.

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.

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.

If AIM is considered an active market, then IFRS 13.80 applies, so you wouldn't be able to use Level 2/3 inputs.