FAIR VALUE

/FAIR VALUE

In this category you can find all posts related to Fair Value (a new concept under IFRS)

Accounting changes for minority investments?

There is apparently an accounting change coming in next year affecting the way financial services (and possibly other) companies account for minority interests. I understand this may require companies to treat a minority investment as a trading/available for sale investment rather than an equity investment at present. Has anyone heard of this? I've tried to verify this with very little success.

By |February 22nd, 2011|CONSOLIDATION, FAIR VALUE, IFRS FOR BANKS|1 Comment

Revaluation of PPE – VALUATION APPROACH- IAS 16

IF INCOME APPROACH IS CONSIDERED IN PREVIOUS YEARS FOR COMPLATED PROPERTIES AND NOW DURING REVALUATION A NEWLY CONSTRUCTED PROPERTY IS INCLUDED THEN HOW INCOME APPROACH WOULD BE APPLIED FOR NEWLY CONSUTRCUTED WHICH IS NOT YET LEASED. Can cost approach ...

By |November 30th, 2010|FAIR VALUE, IAS 16|0 Comments

Real Estate Fair Value Accounting

I came to know REIT sector in US will see a drastic change after adoptiong IFRS. How the Arms Length Price in Fair Value accounting is computed? Do we need depend on any excel templates for this? please suggest !

By |June 22nd, 2010|FAIR VALUE|2 Comments

Speculative trading position on accrual accounted asset?

Hello all, We have several positions of ‘commodity storages’ in our portfolio (oil storage tanks, underground gas storages, coal reserves…). These storages are considered as assets and are valued at a typical average winter/summer commodity sprea...

By |January 28th, 2010|DOCUMENTS, FAIR VALUE, FINANCIAL INSTRUMENTS, IAS 39|1 Comment

Latest IAS 39 treatment on forward contracts

Hello to all IFRS expert, I would like to clarify the IAS 39 accounting entries for a forward contract. My company currently open LC for purchase of machinery from japan for our trading business on 11 March 2010. Due to forex volatility, we entered int...

IFRS treatment for interest free loans

ACo, an offshore company, makes non-interest bearing loans of $10m in FY00, to ZCo a related entity in a tax paying jurisdiction. Repayment terms are 5 equal annual installments from FY05, ending FY10. Whilst i agree that one would generally FV the loan by discounting the future receivables to PV using market rates, what would [...]

By |November 4th, 2009|FAIR VALUE, FINANCIAL INSTRUMENTS|2 Comments

Sale of subsidiary

Company ABC and Company DEF both own Company XYZ (50%0 each). Company XYZ in turn owns subsidiary GHI (100%) and subsidiary XYZ (100%). Company ABC sells it s share in Company XYZ to Company DEF for a consideration of $1 and in turn buys 100% share of subsidiary GHI for $100,000. How do I account for sale of subsidiary GHI in [...]

By |November 2nd, 2009|CONSOLIDATION, FAIR VALUE|3 Comments

IASB update – setoff of financial liability agaist own issued shares

Dear members, IASB has issued an exposure draft which is open for comment till September 7, 2009. This IFRIC discusses the treatment when a company will issue its own shares to settle some or all of its liabilities. The exposure draft talks about the right to acquire own equity instruments. The draft can be accessed at [...]

By |August 8th, 2009|FAIR VALUE, FINANCIAL INSTRUMENTS|0 Comments

Live web presentation introducing the exposure draft on Fair Value Measurement – 30 June 2009

In May 2009 the IASB published an exposure draft on Fair Value Measurement. Stephen Cooper, Member of the Board, Hilary Eastman, Project Manager and Henri Venter, Assistant Project Manager, will be introducing the exposure draft in a live web presentation on 30 June 2009 followed by a question and answer session. The exposure draft is open for comment [...]

By |June 20th, 2009|EVENTS, FAIR VALUE|1 Comment

Hedging activities

Hi AllI need your help. Can anyone give me an example about fair value hedge of AFS Bond by using Interest rate swap?Thank in advance.Mac

By |December 15th, 2008|FAIR VALUE|0 Comments

Acquisition accounting

Dear all, I have a question in relation to acquisition accounting in accordance with IFRS3. In this case a parent company A acquires all the shares in subsidiary company B for (say) 50M. This cost price represents a goodwill over the fair value of the ...

Equity investments AFS is a non-monetary items?

Hi all, We need some guidance in connection to apply the rules explained in IAS 21 related to if investments AFS in capital instruments is a non-monetary item.  Theses equity investments were made without the intention of take control on any compa...

By |December 14th, 2008|DOCUMENTS, FAIR VALUE, FINANCIAL INSTRUMENTS, IAS 16, IAS 2, IAS 21, IAS 39, IFRS|0 Comments

IFRS 7

Hi   Please let me know the salient points in IFRS 7 which has been recently been made a mandatory disclosure in the audited financial statements. Regards Raghavan     Under IFRS 7 there are 12 requirements:   Requirement 1 Reconciliat...

By |December 14th, 2008|AUDIT, DOCUMENTS, FAIR VALUE, FINANCIAL INSTRUMENTS, IAS 39, IFRS, IFRS 7|0 Comments

Fair value model for PPE

The company should have used the (IAS 16) from the beginning, as this is illiquid investment. Any way it is possible to apply the cost principle instead of the value, but there should be a reversal of the previouse capital earnnings recognized under ( IAS 40). In addition a footnote disclosure stating all the effects [...]

By |August 28th, 2008|FAIR VALUE|0 Comments

Goodwill & Minority calculation

Dear All   If a company is issuing shares to its parent compnay on stage by stage basis then what will be procedure to calculate goodwill and minority interest.   for eg.   on 20/03/2008 – suppose a Company (ABC) – subsidiary comapny iss...

By |August 28th, 2008|CONSOLIDATION, DOCUMENTS, FAIR VALUE, IFRS|0 Comments