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Business plans? Presumably intended to make profit, so when/how/where etc. If no thought put into that then you're right but if there's a reasonable case for building cash flows over time then if it's sensible it'll be supported. Common sense approach when auditing anyway. Otherwise every pre-revenu...

really? FRS 102 is actually very prescriptive in how statements are presented, whereas IFRS has a lot more room for manoeuvre
But UK does have a world-leading registry of accounts, accessing any company's info in seconds for free is a massive plus.

something to do with the irredeemable preference shares.

do you get it back if you don't 'utilise' enough of the service. can you get it back if the day after, you don't use them at all, or is it lost

no the principle is same 102/ifrs

if it doesn't then it's an asset acquisition at cost (may need to split the amount paid across different assets and liabilities at proportionate fair value, but not recognised at fair value) etc

So a non-refundable deposit/advance / "minimum spend".

yes goodwill in standalone accounts as a result of a purchase of trade and assets which constitute a business

Sounds like a dividend in specie based on market value of that asset at distribution date, ie out of reserves (if local law permits)

Equity method doesn't mean the instrument is equity. There are two separate issues; one is accounting for the loan, and the other is considering the relationship with that entity from a consolidation perspective.

they basically give you the same option which is to use the reconstruction or merger reserve rather than share premium, the latter being more restrictive

section 612 (merger relief) says it does not apply where group reconstruction relief is available (para 4)

You've already stated the difference Leo. Group reconstruction only arises within existing groups, merger when acquiring a company.
(UK company law matter, for other readers' info).

The definitive source is the signed statements, sounds like they didn't post it into the accounting system. so they can post it in next year but you can ignore for the purpose of current audit assuming they post it correctly against opening retained earnings. then tick opening balances on the system...

Seems to be a liability, no features of equity... (para 16 IAs 32).
cumulative Dividends are fixed coupon?
Plus perhaps you have significant influence over that entity too, so associate?

no interest or 'dividends'?

From your description, it's a SaaS contract for a service, so just release to P&L over time, so prepayment released over 2 years.

yes

A lease is exclusive rights over a specific asset, so not that.
You paid for the 3 year subscription up front right?

may be answering your own question, if didn't know it was an asset at the time, ie it was research at that point, and now it's development you want to capitalise the research. or just a mistake as MM said. look forward to the additional detail

I wouldn't describe employees of the subsidiary as being expenses external to the group but probably a terminology point

why only capitalise expenses external to the group? the costs might be salaries of employees of the sub as part of an internally generated development asset?

what are they in substance? probably contributions /donations with no expectation of getting it back? but depends how 'foundations' operate in that country, maybe there are ones where you can contribute capital so that the foundation spends the income generated from it then returns the capital when ...

capitalise on consol too.

sub Cr bank Dr interco
parent Dr asset cr interco

you say 'cost plus' so sounds like profit to remove on consol too so group development asset may be less than parent's own books

PPE

Setting up for failure at year end if you don't consider group issues until then.... maybe you have very simple structure and no real consolidation issues to worry about, unlikely in a 'complex' group....

did you see this first? https://ifrscommunity.com/knowledge-bas ... ent-losses

P&L reserves brought forward are at their historic average rate for each year so aren't continually translated

In some cases only the activities of a branch are taxable so you need separate ledgers to isolate tax sensitive items, etc I have seen this for example in France where the ledgers are mandated by law (I believe) even though it was just a branch of a UK company. Then there was a consolidation (albeit...

Marek Muc wrote: ↑19 Mar 2023, 13:56 @JRSB - sorry but I don't understand your last post

question was for poster.... to me, delisting means taking a company private, so wondering why that means you can 'refund' shareholders. perhaps the investment was more like debt. 'obviously I need to refund shareholders' isn't obvious to me!