I have 2 concerns related to the attached question, will appreciate if anyone can go through the question and provide clarification. Thanks. 1. In the statement of profit and loss depreciation was charged at 58,442 right so should not the statment of financial position reflect the right to use amount less depreciation charged i.e. 233,766. If not then what would be the credit entry against deprecation amount charged. 2. The question asked amounts to be recognized as of 31 March 20x8, but in the answer, the figures reflected in the balance sheet were calculated as far as 31 March 20x9. I kno ..read more

I think generally, CA of your jurisdiction tells you who needs to prepare group accounts and IFRS 10 what they contain. On that basis, if a company is exempt of conso by CA, then no further questions, this company do not need to do conso, and can apply ias 27 to its full extent. if a company is not exempt of conso by CA, then, if the company is an investment entity, then the company do not need to do conso, based on IFRS 19 para 27-32, but would need to prepare IAS 27 with sub held at fair value. Statistics: Posted by Leo — Wed Mar 20, 2024 2:38 pm ..read more

Make sense, same in France, the CA only gives guidance on exemptions in terms of group size. Statistics: Posted by Leo — Wed Mar 20, 2024 2:31 pm ..read more

as far as I'm aware CA06 only talks about exemption from consolidation in terms of group size, ie you are exempt if you are a small group, as defined. I'd be surprised if there is much of a cross section between 'small' groups and those who apply IFRS and are investment companies. I guess if there's a niche cross section where IFRS 10 is not followed then you'd need to state that in the accounts. Statistics: Posted by JRSB — Wed Mar 20, 2024 1:36 pm ..read more

The issue is under CA06, there is the section that prescribes exemption for companies to do conso accounts. In such a case, they can prepare individual/statutory accounts. I cannot find anything on accounting if it's an investment entity. In parallel, there is this IFRS 10 para 27-33 which prescribes an investment entity to be exempt from conso accounts but need to do IAS 27 with holding the investment in subs at fair value. So, if an entity satisfies the CA 06, and is an investment company, can this company still do individual accounts applying IAS 27 para 10, by holding the subs at cost. O ..read more

Sorry I don't follow the issue exactly. Statistics: Posted by JRSB — Fri Mar 15, 2024 4:13 pm ..read more

I haven't found anything regarding this under CA06 JRSB, could you please have a look as you are the expert in the UK. Thanks Statistics: Posted by Leo — Fri Mar 15, 2024 2:20 pm ..read more

Once again, what inconsistencies have you identified between IFRS and CA06? Statistics: Posted by Marek Muc — Fri Mar 15, 2024 1:57 pm ..read more

I may have, thanks. So based on CA 06, a company exempt from producing conso can prepare separate accounts, if it's under UK adopted IFRS, then the company can prepare accounts under IAS 27. In such a case, it can apply the cost method to account for the subs. However, if the entity is an investment entity than, under IFRS 10 exemption, it can prepare accounts under IAS 27 but account for the subs at fair value. So, in this situation, which one takes precedence? Statistics: Posted by Leo — Fri Mar 15, 2024 1:54 pm ..read more

I think you are simply looking in the wrong place. UK-based entities use IFRS or UK GAAP so I don't think you should expect CA 2006 to have overlapping requirements with these accounting standards. Statistics: Posted by Marek Muc — Fri Mar 15, 2024 10:17 am ..read more