[olfavladi]

The examiner should have asked about the effect on the consolidated statements, I think.
Thank you very much.

[olfavladi]

Thank you so much for your very clear and detailed explanations.
Sorry for this mess with my questions – this is because I did not expect your answer so soon…
AND GOOD LUCK TO ALL at this exam!!!

[olfavladi]

I thought it’s might be interesting for I think there is no answer for this question in IFRS.
But thank you anyway.

[olfavladi]

Thank you very much for your reply – in the exam it will be difficult to make proper assumptions)).

I’ve got another question. This is Q.Mercury (I’ve got it from June 2008 (Singapore). Buy the way is it any differences between international and Singapore P4?
The question is – when do we need to calculate tax adjusted gearing like in this question? In many cases we just use unadjusted gearing.

[olfavladi]

Is there is any answer could be?

[olfavladi]

If we assume that we have fulfiled the conditions at the end of the year and the grant is not repayable now. We completed the production of the asset costed us 100 USD. The forcasted sales (15+15USD) will be in 2014 and 2015 years respectively.
Is it possible to include grant in recoverable amount and then
Impairment=Discounted sales (appr.30)+ Grant (60) – Asset (100) = -10
or
Impairment = Discounted sales (appr.30)-Asset(100)=-70 ???

And how should we account for the grant – we have to recognise grant over the useful life of the related asset.
So when the asset is impaired we have to credit PL (Grant) in proportion to the impaired asset?

Thank you for your attention to my problem)

[olfavladi]

Mike, thanks for the reply!
The intangible is a historical movie. Knowing that our costs are partly offset by the grant’s proceedings we
intended to recover all the cost with grant+revenues. But the situation has changed. And now we are at a loss.
We received grant before we start to produce the movie.
Grant is conditional but not repayable if we fulfil 2 main conditions:
1. we shall produce the movie until the end of the year
2. the movie has predetermined topic (historical).
If we do not fulfil the conditions we shall return money.

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