- This topic has 3 replies, 3 voices, and was last updated 11 years ago by
.
-
Posts
-
Hi,
How could I identify from the scenario whether IFRS 2 Share based payment should applied or whether it is a derivative or heding accounting should be applied? It’s still so confusing.
According to IAS 21 non monetary items such as land should not be retranslated at the year end but we do that in consolidation questions, what is the reason for that treatment?
Please could you help me solve my confusion?
In one Kaplan interim assessment there is an explaination on that. Inventory is not translated at the end of reporting period but need to be carried at lower of cost and NRV.
By that NRV need to use the year end rate to translate.When the buying entity has no intention of receiving the goods, or the contract denotes that payment can be settled net, then this indicates that the item is a derivative.
Share based payment specifically requires the delivery of goods and services, and, to date, I’ve only seen it come up in exam questions with regard to share-option or share appreciation rights for employees (note the distinction between the two being that the former are equity-settled and the latter cash-settled).
- You must be logged in to reply to this topic.