IFRS Q&A by Silvia
Ask questions because it's better to look stupid but understand than look intelligent and not have a clue!
014: How to present a loan with breached covenants?
So, you have a long-term loan, you breached the covenants and it became repayable on demand. Is it current or non-current? Learn here!
013: How to account for rentals depending on inflation and future sales?
What if your lease payments depend on future sales, inflation, use of the asset, interest rate or other things – what should you do? How should you account for them under IFRS 16? Find out here!
012: How to account for barter transactions?
How to account for exchanges of inventories or long-term assets under IFRS? Or other barter transactions? Learn here!
011: Should we create a provision for major overhauling?
How to deal with anticipated major repairs, maintenance, overhauling, regular replacement of small parts and similar items under IFRS? Find out here!
010: How to test hedge effectiveness under IFRS 9?
How to assess hedge effectiveness prospectively under IFRS 9? Do we need to calculate the hedge effectiveness retrospectively?
009: Can we capitalize a customer list under IFRS?
If you purchase a customer list from someone else, can you actually capitalize it (recognize it as an asset)? Isn’t is just the same as the advertising expense? When can you capitalize a customer list under IFRS? Learn here!
008: What is the lease term of cancellable property rental contracts under IFRS 16?
What is the lease term under IFRS 16? How to account for definite or indefinite lease term with 2-months notice period? Learn here.
007: How to present restricted cash under IFRS?
Advances from your clients received in cash… but you can’t use that cash. That’s just one example of restricted cash. How should you present it under IFRS?
006: How to account for contracts to buy commodities with future delivery (own use)?
When you purchase a commodity with future delivery for fixed price, should you account for it as for derivative under IFRS 9? Or as a purchase of inventories (“own-use” contract)? Find out here with example included.
005: How to account for dividends paid to employees?
The accounting for the dividends paid to employees depends on whether the employee is a shareholder or not; and whether the dividend was paid out to employees in their capacity of shareholders. Learn more here.
004: Can we classify loans with variable interest at amortized cost?
Variable interest with cap/floor, full recourse, inflation-linked interest, collaterals – can you still classify these loans as at amortized cost?
003: Can you capitalize demolition cost under IFRS?
If you acquired land with some old building and you plan to demolish that building, how should you treat the demolition cost and the carrying amount of old building? Can you capitalize it to the new asset? Or expense it? It depends…
002: How to deal with different useful lives of PPE within the group?
How to handle the situation when the parent requires subsidiary to apply different depreciation rates or useful lives than in the local legislation.
001: What closing rate to apply when more rates are available?
What closing rate shall you select under IFRS when more rates are available at the reporting date (mid rate, sell rate, buy rate)? Find out here…