Monthly Archives: February 2009

//February

Treatment of under/over absorbed overheads

Good luck For All, Kindly Let me Know Is Any Indication of under/ over absorbed production overheads' treatment in IFRSs. If yes Then What And In which one. If Not Then What Is The Proper treatment? Regards Naveed

By |February 28th, 2009|IAS 2|1 Comment

System upgrade

Dear colleagues, We have recently spend money on upgrading one of our main systems that we use at work and the cost of this upgrade (including licences) is £42k Could this be capitalised? Many thanks, Sheetal Financial Controller

By |February 27th, 2009|IAS 38|7 Comments

Going Concern Sale

Hi all, I have converted a Trading as into a CC, and want to sell the assets of the Trading as to the CC. We need to notify Ministry of Finance about the “going concern” sale within 21 days, and they may then zero rate the VAT for the sales transaction. Both the trading as [...]

By |February 26th, 2009|OTHER|2 Comments

Capital work in progress

Dear Experts, What is the accounting treatment of capital work in progress for the period before commissioning under the following two scenarios? 1. The assets are finance from the company’s internal sources. 2. The assets are financed by the govt in form of a grant from an international financial institution. Kind refer to the applicable [...]

By |February 26th, 2009|IFRS|0 Comments

Cash Flow Statement

Dear all, Can you send me information with regard to cash flow statement under IAS 7. Thanks

By |February 25th, 2009|OTHER IFRS|3 Comments

Transfer of Cash from cash book

Dear Expert, Kindly give me your views on how one can deal with the following internal audit situation: During the review of the company bank reconciliation an internal auditor discovers that the reconciliations are not up to date for more than a year which of course increases the risk of fraud. So the auditor decides [...]

By |February 25th, 2009|INTERNAL AUDIT|3 Comments

By: admin

Hello Salome, on top of what I wrote I wish to add that the amount to be capitalized should be equal to the reduction of future rentals. Any excess expenditure should be taken to the statement of comprehensive income (income statement). Benaya

By |February 23rd, 2009|DOCUMENTS|Comments Off on By: admin

By: admin

Hello Salome, The only other exception to what William wrote is when the repair and maintenance performed by the lessee company would result in reduction of future lease rentals. In that situation the repair and maintenance will satisfy the definition ...

By |February 23rd, 2009|DOCUMENTS|Comments Off on By: admin

Unallocated revenue expenses

Dear expert After my joining i obseved that substetial amount remin unadjusted as unallocated revenue expenditure. how could i adjust the unallocated expenses with my accounts . if there is any relation with IAS 38 intangible assets. please give the suggetion with example and related IFRS Thanks

By |February 23rd, 2009|IAS 38|3 Comments

By: admin

Hi Salome, The repair and maintenance will be expensed and not capitalized. If the lease was even a capital lease the repair and maintenance would still be expensed except where the the expenditure created an extension/expansion in the size, life, outp...

By |February 23rd, 2009|DOCUMENTS|Comments Off on By: admin

By: admin

Hi Salome, The repair and maintenance will be expensed and not capitalized. If the lease was even a capital lease the repair and maintenance would still be expensed except where the the expenditure created an extension/expansion in the size, life, outp...

By |February 23rd, 2009|DOCUMENTS|Comments Off on By: admin

Capitalization of repairment expenses

Dear All, The company use a buillding under operation lease, company just pay lease payments to the owner of the building and there is no intention in the future to get any legal rights on this building. The repairement of the building was performed by the lessee company. According to IFRC, can the repairment expenses [...]

By |February 22nd, 2009|OTHER IFRS|6 Comments

Interest Rate Swap

Dear Experts, An Org has signed a IRS agrrement with a bank against floating int rate of term loan from another bank. Before the maturity of agreement period term loan is repaid and another loan obtained from another bank. Based on int cap and fluctuat...

By |February 21st, 2009|DOCUMENTS, FINANCIAL INSTRUMENTS, IAS 39, IFRS 7|1 Comment

Goodwill under SFAS 142

Hi All, Greetings. Some countries accounting standards say goodwill can be amortized or impaired. Some countries will say goodwill can only be impaired. Where can I get all this information and notes regarding. Thanks in advance.

By |February 20th, 2009|OTHER IFRS|1 Comment

Accounting treatment for Increase in Equity-share Mkt. Price at FY- Closing.

Dear All, This is regarding, i have an investment in Equity shares (100,000 @16) of listed company, where as at 31st Dec.2008 Mkt. Price for these shares was 31 per share. i want to know this increase in share price how i will realise as at closing of FY-2008, by which accounts and in which [...]

By |February 18th, 2009|OTHER IFRS|8 Comments

land on 99 years lease

A company buys land from govt in a economic zone. The land is on a govt. lease for 99 years. should amortization/dep = 1/99 years be charged on the land. As a normal practice (substance form) , most of the lands are on lease. The intent is to give it to owners but no clear [...]

By |February 17th, 2009|IAS 16|0 Comments

Land Amortization- 99 years lease

Dear Reader, A company pays for Land which is on a lease for 99 years. As per the norms available, most of the lands are on 99 years lease. Should depreciation/amortization= 1/99 years be provided on the same per IAS 16 or IAS17. Under which para this is covered in IFRS..........regards eish taneja

By |February 17th, 2009|IAS 16|6 Comments

Unallocated revenues expenses

The company incured pre operational revenue expenses and after operation the company is runnig with profit and preoprational revenue expenses remain same without any adjustment. what will be the procedure to adjust the unallocated revenue expenses please give the reference of ifrs and accounting treatment and also give me information whether total amount of unallocated [...]

By |February 17th, 2009|IAS 18|1 Comment

IAS 19

Dear Members Please advice is there any minimum number of employee required for the provision for gratutity and leave encashment as per IAS 19. Best regards

By |February 16th, 2009|OTHER IFRS|6 Comments

on derivatives

§        Delta neutral hedging strategy A portfolio is worth 90 million. To protect against downside movement manager require 6 months put European option at a strike price of 87million. Risk free rate of return = 9% Dividend yield = 3%  Volatility = 3% S&P 500 index stands at 900. After all the calculation made it [...]

By |February 16th, 2009|FINANCIAL INSTRUMENTS|0 Comments