IAS 8
IAS 8
Lets say that a Company wants to change its accounting policy related to measurement of investments in subsidiaries. (from cost to FV)
Change can apply only to one subsidiary? or to the whole class of subsidiaries ?
At the beginning of 2021 it had 3 subs . 2 sold during the year so one remained at year end and decided to adobt FV model.
Change can apply only to one subsidiary? or to the whole class of subsidiaries ?
At the beginning of 2021 it had 3 subs . 2 sold during the year so one remained at year end and decided to adobt FV model.
Re: IAS 8
IAS 27.10 says: "The entity shall apply the same accounting for each category of investments." The standard is not actually clear about the meaning of category, but generally you're not supposed to choose one method or another for each investment.
Re: IAS 8
Company changed its accounting because the revaluation of the investment at year end will give more reliable information about the Company's financial position and performance. So, what about the investments sold during the year? Their accounting treatment should not be under the new method correct?this is my umderstanding.
Re: IAS 8
This new policy should be applied retrospectively, so the accounting for sold investments should also be restated. Unless there is a case to be made that the sold investments were a different 'category'. As pub_acco noted - IAS 27 doesn't elaborate on the meaning of 'category'. For example, you can have 'investment' subsidiaries measured at fair value and 'operational' subsidiaries measured at cost.
Re: IAS 8
So lets say that during 2021 by changing accounting policy for subsidiaries that were previously at cost now revalued at FV. Retrospetive means, that this revaluation at FV should had taken place also in prior years . (in 2020 this subsidiary should had also presented in FV)
Correct ?
Correct ?
Re: IAS 8
Lets say that we had a reclassidication error in PY's financial statements and we corrected comparatives in CY's financial statememts . (Reclassification error in liabilities....Lease Liability included in borrowings instead in a separate category) Do i need to write in CYs FS abous this? And to put in comparatives column of SOFP.the world 'Restated'? Nothing else changed....
Re: IAS 8
if it's immaterial - don't adjust comparatives, just change it in current year
it it's material - change comparatives, mark as restated, disclose, explain and unfortunately you need to provide the 'third' balance sheet: https://ifrscommunity.com/knowledge-bas ... sification
it it's material - change comparatives, mark as restated, disclose, explain and unfortunately you need to provide the 'third' balance sheet: https://ifrscommunity.com/knowledge-bas ... sification
Re: IAS 8
In 2020 mistakly lease liability included under borrowings.
In 2021 is presesented correct under lease liabilities.
It will be "bad" presentation not to reclassify also in 2020.... But why i need a 3rd balance sheet?
Is not enough to indicate in balance sheet in comparative column the word "restated" and explain in notes the situation?
In 2021 is presesented correct under lease liabilities.
It will be "bad" presentation not to reclassify also in 2020.... But why i need a 3rd balance sheet?
Is not enough to indicate in balance sheet in comparative column the word "restated" and explain in notes the situation?
Re: IAS 8
Strictly speaking you do need 3rd balance sheet, see the previous link and follow references to IAS 1 included there