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by JRSB
16 Jan 2023, 22:36
Forum: General accounting and financial reporting discussion
Topic: correcting journal
Replies: 2
Views: 11809

Re: correcting journal

how did you post 2 debits?

maybe Dr revenue cr cost of sales but more info needed
by JRSB
13 Jan 2023, 14:52
Forum: IFRS-related topics
Topic: Effect of change in law on RBO
Replies: 4
Views: 1454

Re: Effect of change in law on RBO

would seem odd to change the comparative for a law that didn't exist at the previous balance sheet date. current year catchup with explanatory note.
by JRSB
11 Jan 2023, 10:43
Forum: IFRS-related topics
Topic: High seas sales IFRS 15
Replies: 2
Views: 1163

Re: High seas sales IFRS 15

Yes the implications are the revenue recognition policy based on when control passes, sometimes when loaded and sometimes when unloaded, and considering who has responsibility of insuring risk whilst on board etc.

Never heard of a 'high seas sale' though so that may be something else.
by JRSB
09 Jan 2023, 09:26
Forum: IFRS-related topics
Topic: IFRS 16 OR IAS 16???
Replies: 6
Views: 9019

Re: IFRS 16 OR IAS 16???

What was your answer?
by JRSB
09 Jan 2023, 09:25
Forum: IFRS-related topics
Topic: Partial adoption of IFRS
Replies: 1
Views: 998

Re: Partial adoption of IFRS

as I understand it, IFRS for SMEs does not capitalise leases, so yes, either you are using IFRS for SMEs or you are using IFRS.
by JRSB
08 Jan 2023, 17:42
Forum: IFRS-related topics
Topic: IFRS 13
Replies: 13
Views: 3031

Re: IFRS 13

In the UK you typically wouldn't charge VAT on the sale of a residential property to an individual but may be different in your country.
by JRSB
08 Jan 2023, 17:07
Forum: IFRS-related topics
Topic: IFRS 13
Replies: 13
Views: 3031

Re: IFRS 13

you have residential property as PPE in the business?
by JRSB
08 Jan 2023, 13:16
Forum: IFRS-related topics
Topic: IFRS 13
Replies: 13
Views: 3031

Re: IFRS 13

I expect that should only be taken account of if a company had a specific asset that was highly likely only to be sold to private individuals on disposal. not sure what that would be in terms of something carried at fair value from the owning company's perspective. interested to hear what it might be
by JRSB
08 Jan 2023, 12:05
Forum: IFRS-related topics
Topic: IFRS 13
Replies: 13
Views: 3031

Re: IFRS 13

The implication would be that you'd value the asset at 20% less than fair value because that person would have to pay VAT as part of the market value. So ignore VAT for the fair value. If a property valuer say it's worth £1m, you're not going to sell it for £833,333 to accommodate the fact that buye...
by JRSB
08 Jan 2023, 01:02
Forum: IFRS-related topics
Topic: liability to contribute money to other company's equity
Replies: 12
Views: 2720

Re: liability to contribute money to other company's equity

It's probably just to omit the possibility of fantasy contracts with wildly uneconomic terms designed to bend the rules...it can probably be taken as likely that a basic and fair agreement between two parties, overseen by a stable legal system in an advanced economy, is enforceable.
by JRSB
08 Jan 2023, 00:57
Forum: IFRS-related topics
Topic: IFRS 13
Replies: 13
Views: 3031

Re: IFRS 13

It's extremely likely the buyer will recover VAT anyway if they buy it so the VAT element won't come into play when they decide how much to pay, or when you decide what to price, ie the market value. Do you have a particular circumstance in mind?
by JRSB
05 Jan 2023, 15:29
Forum: IFRS-related topics
Topic: Invoiced for future expenses
Replies: 5
Views: 1506

Re: Invoiced for future expenses

There isn't really a standard for prepayments. What do you mean by 'future expenses'.? You've paid the invoice already, great, so are you saying the services you paid for are not yet rendered? So you've paid a deposit or 'on account' payment. Do you get it back if those services never get provided?
by JRSB
05 Jan 2023, 15:27
Forum: IFRS-related topics
Topic: liability to contribute money to other company's equity
Replies: 12
Views: 2720

Re: liability to contribute money to other company's equity

Seems to fit the definition of a provision doesn't it. Perhaps a committed but unpaid capital contribution. Is it a subsidiary?
What is the timing of the legal obligation to send the cash?
by JRSB
03 Jan 2023, 20:18
Forum: IFRS-related topics
Topic: Acquisiton of a commodity at fixed price - derivative?
Replies: 5
Views: 1409

Re: Acquisiton of a commodity at fixed price - derivative?

Is that not a 'forward' with 'put option'?

Not my expertise though sadly :lol:
by JRSB
30 Dec 2022, 22:06
Forum: IFRS-related topics
Topic: IFRS 16 leases and impairment
Replies: 4
Views: 1368

Re: IFRS 16 leases and impairment

Ok , in my view P&L then. Don't think the RoU asset is relevant in this.
by JRSB
30 Dec 2022, 21:32
Forum: IFRS-related topics
Topic: IFRS 16 leases and impairment
Replies: 4
Views: 1368

Re: IFRS 16 leases and impairment

so in computing the lease liability in the first place, you had assumed you would not take the option to terminate? otherwise it'd be at zero at that point anyway
by JRSB
27 Dec 2022, 12:27
Forum: IFRS-related topics
Topic: IFRS 5 Subsidiary Held For Disposal
Replies: 1
Views: 1022

Re: IFRS 5 Subsidiary Held For Disposal

yes because that entity's contribution to the group P&L for that year needs to be audited and if it's still not sold at year end then they need to be in a position to audit the recoverable amount you've assessed of the assets etc.
by JRSB
24 Dec 2022, 22:43
Forum: After hours
Topic: Merry Christmas to all who celebrate
Replies: 4
Views: 13770

Re: Merry Christmas to all who celebrate

Good wishes to all forum readers!
by JRSB
21 Dec 2022, 20:38
Forum: IFRS-related topics
Topic: Management Provision (ECL) Overlay?
Replies: 2
Views: 2654

Re: Management Provision (ECL) Overlay?

I have never heard of it but this is what Deloitte say... Most banks have expanded the frequency and scope of management overlays for impairment, as a result of Covid-19. The increased use of management overlays has highlighted gaps in governance and controls required to ensure ECL estimation is mea...
by JRSB
21 Dec 2022, 15:45
Forum: IFRS-related topics
Topic: Net investment hedge
Replies: 2
Views: 1375

Re: Net investment hedge

I assume the request is for an example in practice (I'm not aware of one...)
by JRSB
16 Dec 2022, 11:32
Forum: IFRS-related topics
Topic: Impairment of investment
Replies: 6
Views: 1926

Re: Impairment of investment

if it was in liquidation at dec 2021 and you knew at that point there would be no return of capital/value then yes impair fully!
by JRSB
16 Dec 2022, 10:09
Forum: IFRS-related topics
Topic: Impairment of investment
Replies: 6
Views: 1926

Re: Impairment of investment

no if there was genuinely no decision made. but if that decision later leads to an impairment, maybe there were other reasons for impairment anyway at that date, ie if the business wasn't performing well or generating profits/dividends etc. if it was doing really well, would they decide to close it?...
by JRSB
16 Dec 2022, 10:06
Forum: IFRS-related topics
Topic: IAS38
Replies: 7
Views: 2135

Re: IAS38

personally, if it was content/adverts/videos it would all be P&L and advert revenue from views would be incidental, presumably the video is advertising a product etc and the ad revenue (which must be tiny?) is not the objective of the content. would be interesting to hear more info about this ca...
by JRSB
15 Dec 2022, 17:09
Forum: IFRS-related topics
Topic: IAS38
Replies: 7
Views: 2135

Re: IAS38

I assume you set up the channel at zero cost, so no.
by JRSB
14 Dec 2022, 11:29
Forum: IFRS-related topics
Topic: Trust Accounts
Replies: 2
Views: 1596

Re: Trust Accounts

IFRS would probably say equity but you need to make sure IFRS applies and not local law or some other SORP for trusts etc. Don't trust accounts separate out an and income and capital account etc? I don't think trusts have equity, they have a capital account which may need to be preserved by the deed...
by JRSB
13 Dec 2022, 10:55
Forum: IFRS-related topics
Topic: IAS 1(?) - Separate financial liabilities in BS based on recognition criterias
Replies: 2
Views: 1302

Re: IAS 1(?) - Separate financial liabilities in BS based on recognition criterias

if it's significant to ask about here, presumably the distinction involved is of interest to readers too...
by JRSB
12 Dec 2022, 10:48
Forum: IFRS-related topics
Topic: Deferred tax liability for loss making company
Replies: 9
Views: 2662

Re: Deferred tax liability for loss making company

ok cool. hope they are not impaired then
by JRSB
12 Dec 2022, 09:57
Forum: IFRS-related topics
Topic: Deferred tax liability for loss making company
Replies: 9
Views: 2662

Re: Deferred tax liability for loss making company

How does your DTL arise Al-Mahamad?
by JRSB
12 Dec 2022, 09:54
Forum: IFRS-related topics
Topic: IFRS2 with both cash and equity settled option
Replies: 8
Views: 2105

Re: IFRS2 with both cash and equity settled option

yes if the equity settled scheme doesn't vest then reverse entries