Dear all,
We have given a contract to ship builders for construcing a vessel. As per the contract terms, if the builder delay the delivery of the vessel beyond agreed delivery date, they have to give us penalty of USD 10,000 per day. Now they have delivered the vessel after 373 days of the agreed date and we have received the penalty from them. How we can account the penalty income in our books, either as penalty income or by reducing the capital cost of the vessel. Kindly refer relevant IFRS …

Dear IFRS Experts,
Could you please give your opinion on the following:
1. Computer softare is to be considered as Intangible Assets or PPE 2. Which type of computer software can be capitalized / expensed out
Whether following type can be capitalized or expensed out
Photoshop
Illustrator
Adobe Writer
AutoCAD
AutoCAD 3D Max
AutoCAd lite
Server Monitrong Software
Performance & Process Management Application Document Management System Data Cleansing HelpDesk System
IAS -38 states capitalization criteria •it is probable that the future economic benefits that are attributable to the asset will flow to the entity;
In that case a company in normal course of …

we have a contract for development of a fixed assets, as per the contract:-
Total Contract amount =  260 Million AED
We have to pay this amount in Euro that is already fixed as per the contract it is 4.49 AED per Euro
whatever is the rate prevailing currently doesnt matter bcoz it has been already fixed in contract,
so my concern is exchange loss on payment will be added to the value of fixed Assets or
will have to transferred to P&L A/c

Can someone please share thoughts around generic accounting issues in the marine industry. The nature of activities will involve using small ships (bareboat) to provide marine terminal services to clients on ports around the world ? From the top of my head, I can see following major issues to be considered:
- Revenue recognition
- Repair cost of ships and capitalisation of subsequent cost
- Treatment of lease income /expense if boats are let out/taken on lease
- Derivative accounting issues (long term fuel contracts ?)
Any other issues or more light on above highlighted …

ACo, an offshore company, makes non-interest bearing loans of $10m in FY00, to ZCo a related entity in a tax paying jurisdiction. Repayment terms are 5 equal annual installments from FY05, ending FY10.
Whilst i agree that one would generally FV the loan by discounting the future receivables to PV using market rates, what would one do with the difference between the PV (say $8m) and the $10m? I think one would immediately recognise that “unearned interest” of $2m in the income statement as a Dr, and in future years recognise the PV …

Case:
 Party gets into a long term construction contract to prepare the machinery which takes 2 years to complete
 Cost elements – Labor $ 3mm and Materials $ 5mm Total $ 8mm
Revenue against – Labor $ 10mm and Materials $ 10mm Total $ 20mm
Margin – Labor 70% Material 50% on total project 60%
 Year 1 Cost incurred Labor $ 4mm and Material $ 2mm
 What should be the revenue that can be recognized against the same? The policy is % completion method.
 Business contention to recognize revenue on 70 and 50% margins respectively.
 What the …

Dear all,
This is my first participation in this forum. i have questions regarding the land as an operating lease.
We have a leased land used for a project. Currently the lease rent is being capitalised as land costs- Property Under Development, on the basis that this cost was incurred to bring the assets into operations.
My questions are:
1- Can the above treatment considered correct in anyway?
2- We want to transfer the land and building from PUD to Investment Property- what options do we have?
3- Are there any conditions to have the combination …

Company ABC and Company DEF both own Company XYZ (50%0 each). Company XYZ in turn owns subsidiary GHI (100%) and subsidiary XYZ (100%). Company ABC sells it s share in Company XYZ to Company DEF for a consideration of $1 and in turn buys 100% share of subsidiary GHI for $100,000. How do I account for sale of subsidiary GHI in Company XYZ’s accounts?
 
Please help!

Dear all
this is just to inform you about an useful pdf file provided by www.iasplus.com that could help you to better understand the impacts on Financial Statement of last IFRS changes. In detail, this file illustrate the application of the presentation and disclosure requirements of International Financial Reporting Standards (IFRSs) by an entity that is not a first-time adopter of IFRSs. They also contain additional disclosures that are considered to be best practice, particularly where such disclosures are included in illustrative examples provided with a specific Standard.
I suggest you …

Dear all
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