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It appears the subsidiary is acting as a subcontractor for the parent. It's correct for them to recognise revenue based on the actual amount received. But I'd classify this as revenue earned from the parent and disclose it as related party revenue under IAS 24.

WOW!

this link should work (Note 25, page 74):

https://find-and-update.company-informa ... download=0

https://www.annualreports.com/HostedDat ... f#page=193

Does the subsidiary directly contract with the ship's owner, and could you clarify the cash flows i.e. who is paying whom?

The scenario needs more specificity, particularly regarding the parent company's role in connecting the subsidiary with the client and in delivering the service.

Yes, you should factor in the minimum step-up at the start of the lease

It's still a debt instrument

Not sure what you mean - a loan is a type of debt instrument

The use of terminal value is largely independent of the length of the forecast. Just remember to apply a 7-year discount when bringing the terminal year's value back to the reporting date.

The credit note confirms the correct amount at the year-end.

That's a trade receivable on the debit side, or you might need to adjust the trade payable if it's still unsettled at the reporting date. You credit the expense, or the inventory if the items haven't been sold. And this definitely isn't a contract asset.

What's the reason for issuing this credit note?

Your diagram doesn't match the narrative part of your question.

You need to estimate an effective tax rate that will be applicable to your company and use this rate when measuring deferred tax (see IAS 12.49)

I've moved your post to a new topic. You can still view the original discussion here: viewtopic.php?t=355

You should also include accruals since they are recognised in the financial statements.

The consideration transferred includes assets transferred to the acquiree which remain within the combined entity (IFRS 3.38). This implies that the cash paid for shares is included in the net assets acquired so that the double entry is balanced. This cash payment equally affects both sides of the g...

You should disclose the following as per IAS 1.25:
- the fact that the company is no longer going concern
- the basis on which it prepared the financial statements
- the reason why the entity is not regarded as a going concern

Please don't

The lease termination costs can be presented within discontinued operations. But I may have missed the essence of your question. If so, please elaborate further.

After the subsidiary is wound up, what plans does the group have for the lease contract?

https://ifrscommunity.com/ifrs-forum-qu ... in-replies

Unfortunately, we don't have insurance experts in our Community.

Hi, please start separate topics for each issue

The second option would constitute a change in group's accounting policy with all the IAS 8 implications like retrospective restatement.
Also, IAS 40.31 states that switching from the fair value model to the cost model will rarely lead to a more relevant financial statement presentation.

You need to address two elements:
1. P/L charge – treat this as a non-cash expense, similar to depreciation.
2. Equity movement: ignore this as it had no effect on P/L and didn't involve any cash flow.

In my view, classifying interest expense on lease liabilities as R&D (operating costs) in P/L statement isn't appropriate. These expenses are more about financing the asset, rather than its actual use. IFRS 16.49 is the correct IFRS reference.