Search found 328 matches

by pub_acco
15 Sep 2020, 13:27
Forum: IFRS-related topics
Topic: Employee benefit obligations
Replies: 22
Views: 3370

Re: Employee benefit obligations

Sick leave provisions that won’t be settled in cash or other financial assets?
by pub_acco
15 Sep 2020, 13:06
Forum: IFRS-related topics
Topic: Employee benefit obligations
Replies: 22
Views: 3370

Re: Employee benefit obligations

I would personally go for other non-financial liabilities because of IFRS 7 footnotes, just as Marek mentioned. I don’t want to take time to distinguish financial employee benefits and non-financial ones either.
by pub_acco
15 Sep 2020, 12:05
Forum: IFRS-related topics
Topic: Employee benefit obligations
Replies: 22
Views: 3370

Re: Employee benefit obligations

Just because IAS 32, IFRS 7, and IFRS 9 exclude them from the scope, maybe?

I’ve seen a few cases where wages payable are included in Trade and Other Payables though.
by pub_acco
10 Sep 2020, 12:31
Forum: IFRS-related topics
Topic: Classification of prepayments
Replies: 15
Views: 5001

Re: Classification of prepayments

I’m conducting a sort of research :) Our local gaap has very very clear guidance on prepayments, but my employer is switching to IFRS. As I need to establish a new policy, I’ve been wondering if we can switch to something universal and intuitive rather than sticking to the local gaap classification....
by pub_acco
10 Sep 2020, 00:55
Forum: IFRS-related topics
Topic: Classification of prepayments
Replies: 15
Views: 5001

Re: Classification of prepayments

Totally!
by pub_acco
09 Sep 2020, 12:56
Forum: IFRS-related topics
Topic: Classification of prepayments
Replies: 15
Views: 5001

Re: Classification of prepayments

Haha I think that’s correct for the purpose of cash flows because otherwise we could make the same argument the payment after delivery - there is only settlement of a payable :D
by pub_acco
09 Sep 2020, 05:26
Forum: IFRS-related topics
Topic: Classification of prepayments
Replies: 15
Views: 5001

Re: Classification of prepayments

Hmm prepayments sounds to meet the criteria listed in IAS 38 technically. Btw how do you guys prepare cash flow statements when prepayments for PP&E are included in Other Current Assets? Exclude the change in such prepayments from Changes in Working Capital line and add it to Capital Expenditures?
by pub_acco
08 Sep 2020, 13:40
Forum: IFRS-related topics
Topic: Classification of prepayments
Replies: 15
Views: 5001

Re: Classification of prepayments

I wish I could go for a correct approach.... But, I'm working on a new policy that will involve dozens of accounting managers in many countries with various skill levels; I need to stick to something popular. There seems to be nothing like a universal practice, though. Marek - I agree that prepaymen...
by pub_acco
07 Sep 2020, 14:37
Forum: IFRS-related topics
Topic: Classification of prepayments
Replies: 15
Views: 5001

Classification of prepayments

I’m still struggling with accounting for prepayments under IFRS. Is it a common practice to classify prepayments for purchase of inventories under Inventories in the balance sheet? Also, is it a common practice to classify prepayments for PP&E under PP&E? I’m aware IFRS is silent on this top...
by pub_acco
02 Sep 2020, 19:54
Forum: IFRS-related topics
Topic: Direct vs. step-by-step methods of consolidation
Replies: 2
Views: 983

Re: Direct vs. step-by-step methods of consolidation

Agree. Perhaps, the approach 1 is a practical shortcut or due to limited functionality of a consolidation software.
by pub_acco
02 Sep 2020, 15:19
Forum: IFRS-related topics
Topic: Direct vs. step-by-step methods of consolidation
Replies: 2
Views: 983

Direct vs. step-by-step methods of consolidation

Assume Parent holds 60% interest in Sub, Sub holds 40% interest in Assoc, and Assoc records profit of 100 in a year. Parent controls 40% of voting rights of Assoc while it holds 24% (60% * 40%) of the economic interest. In practice, I've seen the following two methods to prepare Parent's consolidate...
by pub_acco
28 Aug 2020, 12:12
Forum: IFRS-related topics
Topic: Investment in Subsidiaries at no consideration
Replies: 12
Views: 3428

Re: Investment in Subsidiaries at no consideration

In my country, laws allow to use the carrying amount on the parent's separate book in such a case as the measurement basis used in the parent's and sub's separate books. This treatment obviously distorts sub's separate FSs but nobody seriously cares the separate FSs of a wholly-owned entity. Neither...
by pub_acco
28 Aug 2020, 05:56
Forum: IFRS-related topics
Topic: Investment in Subsidiaries at no consideration
Replies: 12
Views: 3428

Re: Investment in Subsidiaries at no consideration

Isn’t it outside the scope of IFRS and thus any reasonable accounting policy is acceptable? I’m curious about this case because I usually talk to relevant accounting managers and just select some easiest treatment that is legal under local tax laws and corporate laws, because from the parent’s persp...
by pub_acco
27 Aug 2020, 13:47
Forum: IFRS-related topics
Topic: Interpretations Committee agenda decisions
Replies: 13
Views: 2163

Re: Interpretations Committee agenda decisions

Thank you! A lot of them :shock:
by pub_acco
27 Aug 2020, 13:25
Forum: IFRS-related topics
Topic: Interpretations Committee agenda decisions
Replies: 13
Views: 2163

Re: Interpretations Committee agenda decisions

A little bit confused what ADs are. Are they those enclosed paragraphs I always see in the annotated books? Or do I need to look at something outside of the annotated books?

Btw, I switched to eIFRS when I started working from home and now I can’t go back to the paper book days :lol:
by pub_acco
23 Aug 2020, 00:58
Forum: IFRS-related topics
Topic: IFRS 15 in the context of IFRS 1
Replies: 6
Views: 1598

Re: IFRS 15 in the context of IFRS 1

Wasn’t aware of the provision. If IFRS 1 permits, then you can.
by pub_acco
22 Aug 2020, 15:55
Forum: IFRS-related topics
Topic: IFRS 15 in the context of IFRS 1
Replies: 6
Views: 1598

Re: IFRS 15 in the context of IFRS 1

You are not able to use IFRS 15.C5. In general, a first-time adopter has to adopt all the then required standards on and after the transition date. So, you’d already adopted IFRS 15 on 1/1/2019 and thus C5 doesn’t apply to the year 2019.
by pub_acco
19 Aug 2020, 14:30
Forum: IFRS-related topics
Topic: Different approaches to recycling of FV gains/losses in IFRS 9
Replies: 32
Views: 7999

Re: Different approaches to recycling of FV gains/losses in IFRS 9

Aha, we used to use a similar unrecognized actuarial gains/losses approach and switched to OCI ~10 years ago. There must have been some interactions with IAS 19.
by pub_acco
19 Aug 2020, 13:46
Forum: IFRS-related topics
Topic: Different approaches to recycling of FV gains/losses in IFRS 9
Replies: 32
Views: 7999

Re: Different approaches to recycling of FV gains/losses in IFRS 9

That’s the weirdest one :roll: Actuarial gains/losses are recognized through OCI and then amortized using the straight line method and charged to operating profit over the expected remaining years of service (eg 10-15 years). Actuarial losses are sometimes huge and so is the amortization charge for ...
by pub_acco
18 Aug 2020, 14:26
Forum: IFRS-related topics
Topic: Different approaches to recycling of FV gains/losses in IFRS 9
Replies: 32
Views: 7999

Re: Different approaches to recycling of FV gains/losses in IFRS 9

JRSB - Japan. Japan gaap require to recycle everything eventually. The April 2014 board meeting paper mentions "The Accounting Standards Board of Japan presented a paper Profit or Loss/OCI and Measurement that explored definitions of comprehensive income, P&L and OCI, the nature of P&L ...
by pub_acco
17 Aug 2020, 14:55
Forum: IFRS-related topics
Topic: "Accounting mismatch" IFRS 9
Replies: 2
Views: 717

Re: "Accounting mismatch" IFRS 9

IFRS 9 hedge accounting is so powerful we can’t even imagine a realistic situation where an account mismatch occurs :o
by pub_acco
16 Aug 2020, 12:47
Forum: IFRS-related topics
Topic: Accounting for a call option relating to purchase of property
Replies: 9
Views: 4131

Re: Accounting for a call option relating to purchase of property

I would go for the own use exemption, too. You don’t need to (though you may) account for call options on non-financial assets as if they were financial instruments if you hold the options for your own use of the non-financial assets (see Marek’s knowledge base for details). Otherwise, you have to a...
by pub_acco
14 Aug 2020, 07:36
Forum: IFRS-related topics
Topic: Accounting for a call option relating to purchase of property
Replies: 9
Views: 4131

Re: Accounting for a call option relating to purchase of property

Does the buyer forfeit the deposit in any chance? Why does it not just notify the seller on Dec 30, 2020?
by pub_acco
07 Aug 2020, 14:40
Forum: IFRS-related topics
Topic: Different approaches to recycling of FV gains/losses in IFRS 9
Replies: 32
Views: 7999

Re: Different approaches to recycling of FV gains/losses in IFRS 9

Recycling of FVTOCI is one of the two biggest differences (another being amortization of goodwill) between IFRS and our local gaap, so the accounting authority in my country has published several statements to defend the recycling policy. I’ve taken a look at some of them, but they don’t really elab...
by pub_acco
05 Aug 2020, 11:28
Forum: IFRS-related topics
Topic: Capitalize unconsumed office supplies?
Replies: 22
Views: 4699

Re: Capitalize unconsumed office supplies?

That’s a great recap of the discussion. I would totally agree to your opinion ;)
by pub_acco
05 Aug 2020, 05:22
Forum: IFRS-related topics
Topic: COVID-19 Effects on Financial Reporting
Replies: 4
Views: 884

Re: COVID-19 Effects on Financial Reporting

You will need to consider if the COVID-19 related amendment to IFRS 16 (COVID-19 related rent concessions) is applicable to you: https://cdn.ifrs.org/-/media/project/ifrs-16-covid-19/covid-19-related-rent-concessions-amendment-to-ifrs-16.pdf?la=en I think nothing else is specifically applicable to C...
by pub_acco
03 Aug 2020, 15:13
Forum: IFRS-related topics
Topic: Capitalize unconsumed office supplies?
Replies: 22
Views: 4699

Re: Capitalize unconsumed office supplies?

I agree inventories don’t need to be sold, but I’m not really sure if "consumed in the production process or in the rendering of services" as in IAS 2.6 can be interpreted that broadly. At least, IAS 38.69 explicitly excludes supplies for research, advertising, promotions, and so on from t...
by pub_acco
01 Aug 2020, 10:44
Forum: IFRS-related topics
Topic: Capitalize unconsumed office supplies?
Replies: 22
Views: 4699

Re: Capitalize unconsumed office supplies?

Page 22. Wasn't aware the pdf was protected. IFRS 棚卸資産の範囲 (IAS 2.6(c), 16、IAS 16.8、IAS 38.69) Scope of inventories 販売活動及び一般管理活動において短期的に消費される事務用消耗品等の取扱い Treatment of office consumables, etc. consumed in the short term through selling, general and administrative activities 基準上、取扱いが明記されていないため、「生産過程またはサ...