dear sir or mam
 
When one company adopt the IFRSs 1 first time then what are the irems exempted from national GAAP in the case of convergance to IFRSs.
 
Thanks
 
Sincerely yours,
Rakesh


dear rakesh

pls read ifrs 1 and see the exemption given for the same

there are 10 exemptions

Regards

Jignesh


 

We have a projector & purchased 6 years back @ 17000/- we have depreciated 8000/- as of now and the NBV is 9000/-. Now the market value is 5000/-. Do we need any accouning treatment as per IFRS.

Upul


Dear Upul,

IAS 16, Property, Plant and Equipment (PPE), allows a choice between the
cost and the revaluation model. Under the cost model, PPE is valued at cost
less any accumulated depreciation and any accumulated impairment losses.
Therefore, an assets should not be carried at no more than their recoverable
amount (Higher of: – Market value or Value in use) (As per IAS 36 Impairment
of assets). This means that if you are using the cost model, 4000 should be
impaired to reflect the Market value of 5000.

On the other hand, under the revaluation model, PPE is carried at fair value
less any subsequent accumulated depreciation. Fair value is normally open
market value, as in your case 5000. However, it is to be noted that the
revaluation must be made with ‘sufficient regularity’ to ensure that the
carrying amount does not differ materially from the fair value at each
balance sheet date.

In addition, PLEASE NOTE THAT, if an item is revalued, the entire class of
PPE to which the assets belongs should be revalued. Therefore, it follows
that, if a revaluation increases the value of an asset, the increase is
credited to equity under the heading ‘ revaluation surplus’ unless it
reverses a previous decrease in value of the same asset that has been
recognised as an expense. It should then be recognised in the statement of
comprehensive income (Revised IAS 1 Presentation of Financial statements)

Alternatively, if a revaluation decreases the value of the asset, as per
your case IF you are using the revaluation model, the decrease should be
recognised immediately as an expense in the statement of comprehensive
income, unless there is a revaluation reserves representing surplus on the
same item.

Regards,

Yashin


Agree with the statement below but with exceptions

In case the cost method is used then the imparement provision will apply to “projector” is a CGU (cash generating Unit). Further there should be a triggering event to suggest. IAS gives you the events that are generally considered as trigging events. Considering your situation it does not seems that you have to provide for Rs. 4000.

In case you are doing revaluation then what is stated below is true but again your query does not seems one for accounting of revalued assets.

Best regards