Scenario: In June 2006, XYZ Co. obtained an interest free loan amounting to USD 50 million from a third party with no fixed repayment terms. Under the terms of the loan agreement, the loan is to be repaid in annual installments, each equal to 60% of X...
Can the arrangement fee (agengy fees, structuring fee and legal charges) paid to obtain a long term loan be deferred and subsequently amortised over the tenure of the Loan? Kindly give references from IFRS. Regards, Ali
The Company has taken a loan for construction of projects. A part of amount is kept in FD with the Bank. Interest is capitalized on the amount paid as per payment certificates like draw down. If the project is capitalized and 2 payment certificates received after the capitalization date. Now question is whether interest will [...]
Dears Would you please explain me what is the difference between affiliates and subsidaries, and then if there is any difference in accounting treatments.( i am asking these question w.r.t an investment co.) 2nd thing is how i will treat the personal expenses of a partner which are being paid by the co. and where [...]
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...
Please let me know the treatment of Inter company loan waiver.Example Company A is fellow subsidiary of company B. And company B has given loan to company A for $ 10,000 and there is accrued interest of $ 1000 on loan. Now Company B waive off all loa...
Dear All, Can Loan be classified as Available for sale investments (as it is open category). Please answer while considering IAS 39. Thanks Muhammad […]
As per the amended IAS 23, all borrowing costs on qualifying assets should be capitalised (no option to expense). Does exchange differences on foreign currency loans qualify as borrowing costs to be capitalised? Best regards Allan Hi Allan To my understanding any positive/negative FX difference is expensed directly to the P&L. Regards, Marc The change to [...]
Dear All i am working in a home finance company which is subsidary of german company, due to which we are require to prepare the financial from IGAAP to IFRS. i have the following questions:- 1.we take a loan and in taking loan that we usually pay a processing fee. 2. we pay security deposit [...]
Dear Vatsla can you answer my following question in details. 1. we take a loan and pay processing fee for taking loan. for eg. if we take a loan of rs 10 lacs , we generally pay processing fee of rs.50000. if you see the net amount in hand is rs 9.5 lacs As per [...]
Dear all Please help in deciding what items can be regarded as cash equivalents > Thanks in advance! Regards, Lina Cash equivalents are financial instruments that can be easily converted to cash, have high liquidity like stock of quoted companies. Best Regards. Alberto Lina, I woul suggest to take a look into IAS [...]
Hi all, I am bhenzer a neophyte in ifrs from Philippines. Can anyone please tell me how to journalize this. My company obtained a loan in December 2007 in the amount of 20 Million to be amortized in 10 years beginning 2010 in 120 equal monthly installments. Interest from December 2007 to December 2009 [...]
Good day, Could you tell how we record loans interest should I have provision then I amortize it on yearly basis or should I record the interest expense at the end of each year according to IAS what should I do. Regard. Hi Amir, First of all you need to make an estimation [...]