Should the receivable from 100% subsidiray requires impairment if there are accumulated losses in sub and net worth is negative?
If  it require impairment then what is the criteria to apply and specialy when audit report of that sub  has unqualified opinion and no issue for going concern.
According to IAS 27 (Intragroup losses may indicate an impairment that requires recognition in the consolidated financial statements)

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 spread (buy summer, sell winter). The complete portfolio is accounted using the “accrual” method. Within the trading business these spreads are also referred to as intrinsic value of a storage.
We are considering trading positions on these assets in the future… This implies that traders should be possible to take daily ’speculative’ positions on assets assigned in our physical …

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 into a forward contract for Japanese Yen. Say the yen amount is JPY25,000,000 @ 3.789 (for malaysia) maturity on 10 January 2011.
What is the double entry ? Is it correct that we debit financial assets at RM947,250 (Yen x 3.789/100) and credit financial liability RM947,250 at the same …

For development of qualifying assets we took a loan from bank, as per ias 23, interest cost on loan taken for qualifying assets will be capitalized to those assets, as per the loan agreement interest rate was libor+1.5, initially libor was high so to cover the loss of probable higher rate of interest co. went in to interest rate swap and as per that now co. has to pay only fix 4.5%  now libor rate has gone down so my question is, loss on interest swap will be transferred to …

Dear Sir or Madam
Can you tell me what will be include in the Financial Instruments?
and second think i am doing research on the discloser of IFRS by the companies and i am not understanding what would i see in the annual reports of the companies for seeing the Financial Instruments ?
Regard
Rakesh

Dear All
Our Company is into Oil trade and has entered into options in commodity.
Can some one give me the list of accounting entries under USGAAP in the books of both Options writer and options buyer.
Request you to give the journal entries under both these circumstances
1. If the company follows hedge accounting
2. If the company doest follow hedge accounting
Also let me know the relavant accounting standard.
Thanks for your help.
Regards
Ganesh

Hi everyone
How do we recognise a put/call option in the balance using the fair value method and not hedge accounting.
Thanks and regards
Catherine

Dear Group members
please advice me on the following
1) do we need to fair value the retention money, which is payable in after 18 months
2) do we need to fair value the secured loan, where the payment of the prinicpal amount will start from April 09 till april 2014, and the interest is paid regulary @ 14%
3) do we need to fair value the leese deposit given and taken both. the same is for more than one year
4) do we need to fair value the advances paid for the purchase of …

Dear Experts,
An Org has signed a IRS agrrement with a bank against floating int rate of term loan from another bank.
Before the maturity of agreement period term loan is repaid and another loan obtained from another bank.
Based on int cap and fluctuation in int rate loss/proft is recognised in Income Statement and Asset/ Liabilty is accounted.
Due to repayment of term loan against which IRS agreement was made. Can we continue to account for IRS against another loan obtained. Or IRS agreement is to be cancelled.

Does it exist a definition for financial instruments?

I am confused with the different perceptions of financial instruments.
Thanks.
Sincerely yours
Emilio

 
Dear Emilio,
 
a Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
for this, definition of financial asset and liability and equity have to be checked
jatin

Emilio–
IAS 32 Financial Instruments defines this in paragraph 11
Craig

There are various treatment of financial instruments as to their valuation, measurement and prepsentation. You may refer to IFRS 7, IAS 32 and IAS 39.
 

IAS 21 discusses …

Hi, Members.
 
In regard to the above subject please help me to answer the following question.
 
One of the four categories of financial assets as classified in IAS 39, Financial Instruments: Recognition and Measurement is subject to “tainting rule”. Identify the category and explain what is tainting rule.
 
Thanks and Regards.
 

Kibona

Hi,

Tainting Rule means:
Where an entity sells or transfers more than an ‘insignificant amount’ of its held-to-maturity investments it must reclassify all of them as available-for-sale. It is then prohibited from classifying any assets as held-to-maturity for the next two full annual financial periods, …

Dear all,

Is it fair to value inventory at updated standard costs even if the inventory item was manufactured at a time when standard costs were much lower?
 
Regards,
Grace

Hi Divine
I experienced this issue in 1995
It is fair and possible but all depends on the control and policies you have
IAS 2 allows you to use standard cost valuation for inventory in final reporting if standards approximate to actuals.  As you well say below the standards will always differ a lot to actuals particularly now (and so was the case in 1995) because of …

In Canada, public companies and financial institutions (generally)
will be adopting IFRS in 2011. Private companies will have the choice
between IFRS and or local Canadian standards specifically for them. It
has not been announce yet what will happen with “Not-for-profit”
organizations (generally charities), but it seems likely they will
also have a choice between IFRS and local Canadian standards designed
specifically for not-for-profit organizations (essentially the private
company accounting standards with some extras/exceptions).
Can I ask what happens in other countries that are using (or adopting)
IFRS? Do private companies have a choice to adopt IFRS, are there
local …

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 company, just receipt the dividends and sale it in a high level.
Thanks

 
 
Roberto

 
The standard applicable to AFS is IAS 39 even if the investment is in a currency other than your own reporting currency.
Despite the managerial intention, if the percentage of interest owned, directly or indirectly, by your company is …

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
Reconciliation of carrying amounts by classes of financial instruments to IAS 39 measurement categories (at least these categories are HTM, AFS, FVTPL, Loans and Receivables). An entity shall make the decision which classes of financial instruments are appropriate to the nature of the information disclosed taking into account the characteristics of those financial instruments.

Requirement 2
Description of processes for managing the …

Dear Sir/Madam,
I would like to have some detailed information about IAS 39.
Thanks and Regards
Karim

Dears

I have a question regarding bank a/c in foreging currency, as we have one bank account in euro, where as we are maintaing our books in local currency (other than euro).
Every month we there is difference in exchage rate, and we closing our books on monthly basis. in my opinion we have to record the difference (if there) every month either expense or income, where as my manager want to show this difference (if there) one time only at the year end and he want to keep this monthly difference …

Dear friends,

it happens that I am an employee of a manufacturing company who is making hedging for foreing currencies transactions.
Do you happen to have documentation on the bookings that I have to make in the balance sheet/profit&loss account?
With a specific example: spot exchange rate, forward exchange rate, what I should book as P&L gain/loss and in B/S as payables/receivables?
Thank you.
Adrian Mitranus

Can any one let us know if there are any model notes for financial statements for disclosures as per IFRS 7 “Financial Instruments Disclosures” in the financial statements as per IAS 34 “Interim Financial Reporting”?
 
Do they primarily have to be disclosed in the interim financial statements as they are disclosed in the annual financial statements as per IAS1 ? Or are there some abbreviated versions of such disclosures for interim financial statements?
 
Your assistance on this will be greatly appreciated.
 

Hello,
 
Can anybody help me understand cash hedging?
 
Thanks.
Brenda