Monthly Archives: August 2011

//August

How to apply IFRS impairment charges on loans

i need examples mina.wagih@cibeg.com Related posts:IFRS: a help or a headache? Apply for MSc in Accounting and Control in Amsterdam IFRS treatment for interest free loans Loans Related posts:IFRS: a help or a headache? Apply for MSc in Accountin...

By |August 18th, 2011|OTHER IFRS|0 Comments

Accounting entry query at the year end

Please let me know the entry for the below transaction. we have a job value 15.2 million. Let say, main client-x, contractor-y and we are subcontractror-z. x has given the order  to y. y has given order to us. we have to provide the equipment which va...

By |August 13th, 2011|OTHER IFRS|0 Comments

Share application money

Where is share application money classified in balance sheet? Related posts:Share application monies Minority Interest Accounting treatment for Increase in Equity-share Mkt. Price at FY- Closing. Related posts:Share application monies Minority In...

By |August 12th, 2011|OTHER IFRS|0 Comments

Comment on IFRS treatment for interest free loans by professor1964

The FV of the loan is the discounted receivable using market rates, the difference between the PV (say $8m) and the $10m should be deferred and amortized over the term of the loan on the same basis as the accretion. The free interest is an additional cost to the company. However, this difference is not a transaction cost (e.g., costs paid to the broker, legal costs, commissions) as defined under IFRS (more closely mirrors premiums/discounts, financing costs or holding costs) and therefore should not be expensed immediately but should rather be deferred and amortized on the same basis as the amount that is being accreted. On the financials you would present the long term loan receivable on a discounted basis and would also show a deferred charge that is amortized on the same basis. Don't adjust for any changes in market interest rate as this should be accounted for using the amortized cost method. Daniel

By |August 11th, 2011|DOCUMENTS|Comments Off on Comment on IFRS treatment for interest free loans by professor1964

Comment on IFRS treatment for interest free loans by professor1964

The FV of the loan is the discounted receivable using market rates, the difference between the PV (say $8m) and the $10m should be deferred and amortized over the term of the loan on the same basis as the accretion. The free interest is an additional cost to the company. However, this difference is not a transaction cost (e.g., costs paid to the broker, legal costs, commissions) as defined under IFRS (more closely mirrors premiums/discounts, financing costs or holding costs) and therefore should not be expensed immediately but should rather be deferred and amortized on the same basis as the amount that is being accreted. On the financials you would present the long term loan receivable on a discounted basis and would also show a deferred charge that is amortized on the same basis. Don't adjust for any changes in market interest rate as this should be accounted for using the amortized cost method. Daniel

By |August 11th, 2011|DOCUMENTS|Comments Off on Comment on IFRS treatment for interest free loans by professor1964

URGENT: IFRS trainer needed!

We need a trainer to deliver an IFRS training course to one of our Asian clients.  If you have IFRS subject matter expertise and if you have training expertise, please email your CV to info@bccp-llc.com and I will then contact you with additional information.

By |August 4th, 2011|Uncategorized|0 Comments