[steveliujian]

anechek, you are extremely kind, I love u! haha!!! very good question and answers! make complex issue simple

[steveliujian]

Thank you, Nochola!!!!

One more question on the impairement of Financial Asset. IFRS9 requires interest to be accued?

eg. asset value 100K(amortised), 5% coupon interest, 5% effective interest, due to issuer financial difficulty, it is estimated the value will be impaired to 60K and no interest will be paid later.

so, interest should be accrued? 60K * 5% = 3K?

Thanks!

[steveliujian]

I am a little bit confused about the initial recognition,

1. if it is Fair valued. how to treat the issue cost?
eg. bought equity asset at FV $100K, issue(other cost) of $10K
issue(other) cost is expensed or it is capitalised in the Asset? ($110K?)

2. if it is in amortised cost. how to treat the issue cost?
asset value recogised at $100k or $110k?

same as debt equity (liabilities), how to treat issue cost?
issue debt $100K, discount $20K, issue cost ($10k?
how is the value of the liability initially recognised? (100-20+10 = 90?)

[steveliujian]

thank you hsjubbiely , can I repeat:

1. once IA is impaired, it can not be reversed.
2. TA can not be reversed higher than its original value, any excess should be recognized as income in P&L, because this case we consider depreciation, so, it can not be higher than 70.

in this case, the treatment for 90 is, 10 to its TA (to 70), 20 to P&L.

[steveliujian]

thank you, so can I unimpair TA back to 80? and patent+goodwill = 10? The current value is 90, where is the missing 20 then? if the TA is only 70 and can not unimpair patent and goodwill, how come the current value is 90?

[steveliujian]

I want to join, anyone can answer my question for IAS 16 and 36 (a seperate topic )pls? I am self studying with no one to ask. thank you!

[steveliujian]

other info (i): tax allowable dept at 10% per year on strainght line basic.

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