By CPDbox – Making IFRS Easy
Helping people to learn IFRS
Market prices of most non-financial assets are usually not available, because these assets might be outdated or highly customized or simply not traded on the market. How do you set the fair value of these assets in this case? Learn...
Can you capitalize rental expenses of land under IFRS? And what about the rental of the temporary offices? Find out here!
How to allocate fixed overheads to the cost of inventories? What if your production is abnormally high or abnormally low? Find out here with examples included!
How to deal with anticipated major repairs, maintenance, overhauling, regular replacement of small parts and similar items under IFRS? Find out here!
How to determine whether the performance obligations in the contract are distinct or not distinct under IFRS 15? Find out here, with example included!
How to apply 5-step model of IFRS 15 to the licenses of intellectual property? Are there any special considerations? Learn here!
How to account for exchanges of inventories or long-term assets under IFRS? Or other barter transactions? Learn here!
Should you recognize settlement discount as a cost at the time when the payment is received? Or, should you adjust revenue? How? Learn here!
Can you use the same incremental borrowing rate for all your leases under IFRS 16? Why can't you use your own implicit rate in the lease if you are a lessee? Learn here!
If you are using third-party supplies within your product or service, are you an agent or a principal? How should you recognize revenue in this case? Learn here!
What if the tax rate on capital gains is different from the tax rate on profit? How to calculate deferred tax on assets that will be recovered via both use and sale? Learn here!
Imagine you sell in EUR, make purchases in INR and your loans are denominated in USD... what is your functional currency in this case? Learn here!
What to do with revaluation surplus when transferring your PPE to investment property? How to account for it at the date of transfer and subsequently? Learn here!
How to classify any property (not just a hotel) if you use it for more purposes? And, what to do if you provide some additional services on top of rental? Find out here!
Can you capitalize exchange differences on foreign currency loans as borrowing costs? If yes, then how? Please find out here!
How should you match the government grant with expenses for which it compensates? Sometimes, it's not very straightforward and we need to apply our judgement and experience. Learn how to account for the grant revenue here!
How to account for sale of gift cards? What do to when the customers don't redeem them? Find out here!
How to classify depreciation of warehouse? Is it cost of sales or administrative expense? What to do when the classification changes? Learn here!
How to account for the loan origination fees or the loan servicing fees? In profit or loss? Amortize? Find out here!
What happens when you buy lots of assets below your capex threshold, but still high expense? And, should you revise your capex threshold retrospectively? Learn here!
What is the lease term under IFRS 16? How to account for definite or indefinite lease term with 2-months notice period? Learn here.
What is the difference between contract asset and receivable? When to book a contract asset and when a receivable? Learn here (with example)!
Should you book a provision for warranties under IFRS? Or, is it a separate performance obligation and you should allocate some revenue to it? Find out here!
How to account for assets which you gave for free to your clients for promotion purposes? Branded refridgerators, stands, displays, lights, signs - can you capitalize them? Find out here!
What is a financial guarantee? What is it NOT? And, how to account for financial guarantees under IFRS 9? Learn here!
How to account for veterinary costs, animal food, fertilizers, pesticides and other operating expenses in agriculture under IAS 41? Learn here!
How to determine the impairment on intercompany loans under IFRS 9? What are the special considerations in relation to groups and internal loans? Learn here!
IFRS do not specify any rules for presenting the financial statements when the going concern basis does not apply. So, what to do? How to present the financial statements? What should we take care of? Find out here!
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!
How to assess hedge effectiveness prospectively under IFRS 9? Do we need to calculate the hedge effectiveness retrospectively?
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!
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?
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.
Variable interest with cap/floor, full recourse, inflation-linked interest, collaterals - can you still classify these loans as at amortized cost?
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?...
How to handle the situation when the parent requires subsidiary to apply different depreciation rates or useful lives than in the local legislation.
The truth is that there is no specific IFRS related to precious metals. What to do when you buy gold and other metals to store value? Learn here!
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!
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.
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...
