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Fair value as deemed cost for property

23 January 2010 2,267 views 5 Comments

Hello to all IFRS expert,

Our company elects to use fair value at the date of transition as the deemed cost $100 of an item of property, plant and equipment. How we can account the difference $5 of the carrying amount $95 of the asset at that date with its deemed cost $100? Is it correct that we debit PPE $5 and credit Return Earning $5?

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5 Comments »

  • ifrslist
    ifrslist said:

    [New Post] ifrs – via @twitoaster http://www.ifrslist.com/2010/01/23/ifrs/...
    via Twitoaster

    # 23 January 2010 at 9:53 am
  • ifrs | IFRS LIST.COM – The online community about IAS IFRS … — Accounting Blog said:

    [...] Accounting Finance Job wrote an interesting post today. Here’s a quick excerptWelcome to IFRSLIST.com, the free community where you can find resources, share experience, knowledge and ideas about IFRS, bAccounting/b and Auditing with more than 1.5k members. Sign-up and start a new discussion. … [...]

    # 23 January 2010 at 1:33 pm
  • Kristina said:

    …

    Хм …

    # 13 March 2010 at 1:38 am
  • Lalit Dalal said:

    Difference of $5 go to “revaluation surplus” which will be a part of OCI (Other comprehensive Income)

    # 7 April 2010 at 6:34 am
  • Lalit Dalal said:

    can somebody answer my question please…..

    What can be the fair value of Coal Mines in case of a mining company…

    will it be the value of coal inside the mine or the value which somebody would pay to get the mine at present condition …

    # 7 April 2010 at 6:37 am

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