December 2015

Overview

The Grant Thornton International IFRS team has published IFRS Viewpoint – Common control business combinations.

The IFRS Viewpoint series provides insights on applying IFRS in challenging situations. Each edition will focus on an area where the Standards have proved difficult to apply or lack guidance.

This edition considers how to account for a common control business combination.

The issue

How should an entity account for a business combination involving entities under common control? This is an important issue because common control business combinations occur frequently but are excluded from the scope of IFRS 3, the IFRS standard on business combination accounting.

Resource

The publication IFRS Viewpoint – Common control business combinations follows this Adviser alert.

 

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On-line Tax Strategies (December 2015)

ATTENTION: Dealer action required

Effective November 1, 2015, Revenu Québec announced a new position on the application of restricted input tax refunds (ITRs) when a car dealer provides a replacement vehicle to a client and is reimbursed by the manufacturer.

Targeted situations:

  • The dealer makes repairs to a vehicle covered by the manufacturer’s warranty;
  • Under the terms of the manufacturer’s warranty, the client is entitled to a replacement vehicle;
  • The dealer bills the manufacturer for the repair services, including the cost of the replacement vehicle.

 

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November 2015

Overview

The Grant Thornton International IFRS team has published IFRS Viewpoint – Related party loans at below-market interest rates.

The IFRS Viewpoint series provides insights on applying IFRS in challenging situations. Each edition will focus on an area where the Standards have proved difficult to apply or lack guidance.

This edition provides a framework for the initial and subsequent accounting for loans made by an entity to a related party that are
at below-market levels of interest. Common examples of such loans include:

  • Inter-company loans (in the separate or individual financial statements)
  • Employee loans.

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November 2015

Overview

The Grant Thornton International IFRS team has published IFRS Viewpoint – Inventory discounts and rebates.

The IFRS Viewpoint series provides insights on applying IFRS in challenging situations. Each edition will focus on an area where the Standards have proved difficult to apply or lack guidance.

This edition considers how a purchaser accounts for discounts and rebates when buying inventory.