Home » Archive

Articles in the IFRS Category

IFRS »

[15 Dec 2008 | No Comment | 5,648 views]

Dear All,
The Company was incorporated in Oct 2007.Could you please give your
expert opinion on the treatment of preliminary expenses (Revenue
generation is not yet started) e.g. rent, salary, traveling etc.
incurred during Oct 2007- Aug 2008. Please reply in reference to IFRS.
Revenue is expected in Sept 2008.
In my view, preliminary expenses can be accumulated and amortized when
revenue is started due to matching concept.
BestRegards,
Hemant

Preliminary expenses / startup costs, etc. cannot be deferred. They
have to be charged off to income statement in the year of actual
startup of operations.

Thanks & Regards
Anand

Hemant,
Whether to Deffer the preliminary …

IFRS »

[15 Dec 2008 | No Comment | 3,410 views]

Dear Friend,
Please inform which website can give me detailed IFRS and IAS access
free of cost. Deloittee IAS PLUS gives summary.
Thanks
Hemant

Hi Hemant
For a summary of the scope of each Standard you may want to rely on
the official site of the International Accounting Standard Board
(www.iasb.org). Detailed information on each standard are instead
subject to a subscription which however provides you also with regular
updates.
Regards
Antonello

Bookmark on Delicious
Digg this post
Recommend on Facebook
Share on Linkedin
share via Reddit
Share with Stumblers
Tweet about it
Subscribe to the comments on this post
Tell a …

IFRS »

[15 Dec 2008 | No Comment | 2,884 views]

Good day,
I would like to know how a company would record shares in its books if
these were received as a gift.
For example:
Shares held by Mr. Brown in Company A were transferred to Company B as
a gift. How would these shares be recorded in the books of Company B
under IFRS? Please refer me to the applicable IFRS
I look forward to your response
Regards,
Tracia

TraciaOne would need to refer to the terms and conditions of the transfer of
the gift for the more detailed aspects of recording the transaction.However, assuming that it is a vanilla …

IFRS »

[15 Dec 2008 | No Comment | 2,503 views]

Dear IFRSListers
Has anyone in the group dealt with carbon credit accounting under IFRS
yet? If so, please advise.
Regards
Vatsala

No business case as such. IFRIC 3 dealt with Emissions and was applied
by many companies until its withdrawal in 2005 as it resulted in
massive volatilities in the financial statements though it was the
correct way to apply IFRS for carbon credit accounting. IAS 8 applies
now.A fellow professional asked me this question and my research proved
unsatisfactory. I just want to know if any colleagues on this list are
still applying IFRS accounting and how they are dealing …

IFRS »

[15 Dec 2008 | No Comment | 3,580 views]

Dear Experts,
Please give your export opinion on the following query:
The Company issues lease agreement for 12 months for rent of 120000
from 1 Jan 2008 to 31 Dec 2008. The Company gives concession for 2
months from 1 Jan 2008 to 28 Feb 2008 for 20000 i.e. a customer has to
pay 100,000.
Rent Amortization : Spread 12000 monthly over 12 months
Concession : Spread over concession period 2 months 10000 monthly
Do you think that concession should have been amortized over 12 months period.
Please mention the reference of IFRS.
Best Regards,
Hemant

Hi,
As per IAS 17, the first …

IFRS »

[15 Dec 2008 | No Comment | 2,458 views]

Hi all,
A non-profit organisation based in Virginia, USA was donated part of
real estate’s value.Currently the real estate is being adminstered by
an agent.I would appreciate if any one could hint me what both IFRS
and USGAAP recommends for treating such transaction.
Thank you
Aklilu

Hi,
When you say value, I assume a cash donation was made to buy the
property. Is the property been transferred in the name of this
organization. If it has, this means that risks and rewards of
ownership have been trasferred.
I would assume, IAS 20, Grant accounting rules will need to be followed.
The amount of …

IFRS »

[15 Dec 2008 | No Comment | 6,925 views]

All,
We are constucting a new building in our factory for which we of
course capitalize all the costs involved. However to build the new
building we had to tare down the old building that still had some book
value. Does anyone know if we would be able to capitalize the
bookvalue of the old building as part of the costs to construct the
new building or do we need to take the old book value directly to P&L?
Best regards,
John

You can capitalize demolition costs themselves, but need to write-down
the Book Value of old building, because its …

IFRS »

[15 Dec 2008 | No Comment | 3,253 views]

———- Forwarded message ———-From: Simone Salvi <salvi.simone@gmail.com>Date: Sun, Dec 14, 2008 at 7:46 PMSubject: Fwd: [IFRS List] Basis for Valuation of closing stock.To: elena137.ciao@blogger.com
Forwarded conversationSubject: [IFRS List] Basis for Valuation of closing stock.————————
From: pankaj sharma <sharma.pj@gmail.com>Date: Fri, Sep 12, 2008 at 5:23 AMTo: ifrs@ifrslist.com
Hi,
Can any body tell me how to go for valuation of closing stock of tools& sapres of various machinery parts?
Thanks
–PANKAJ SHARMA———-From: Hemant Tejraj Bhandari <hbhandari@dafza.gov.ae>Date: Tue, Sep 16, 2008 at 10:12 AMTo: ifrs@ifrslist.com
Appropriate method would be weighted average cost.

Best Regards,
Hemant Tejraj BhandariFinancial AnalystDubai Airport Free ZonePO Box …

IAS 16, IAS 38, IFRS, TAX »

[14 Dec 2008 | No Comment | 1,088 views]
Date of comercial production

Dear all,
can anyone please guide me if there are any guidelines as to establish
date of commercial production in a manufacturing concern in IFRS.
thanks and regards
deepak

Hi Deepak,
I assume you are inferring to either intangible assets.
There is n…

AUDIT, IAS 2, IAS 8, IFRS, TAX »

[14 Dec 2008 | No Comment | 3,062 views]
Reversal of a previuos inventory writedown

Dear All
Kindly feed me back regarding the reversal of any previuos writedown
that had been made in a previuos period. Is it possible to reverse a
wirte down for inventory made in 2007 to be reversed in 2008
Noting that I couldn’t reach any speci…

IFRS, TAX »

[14 Dec 2008 | 3 Comments | 2,447 views]
How to learn IFRS

Dear All,
please give me the details how to start learning of IFRS.
and how to make career in it.
Thank you
     
 
 
 
 

I am a USA based accountant and wamt to learn more. Curious how much
implemetation has taken place in other countries?

CONSOLIDATION, DOCUMENTS, IAS 2, IAS 21, IFRS »

[14 Dec 2008 | No Comment | 3,285 views]
PPP

Hi

 
Please give me your opinion on forex loss on Assets. Do you capitalize it or do expense it to the foreign loss

This e-mail message and any attachment hereto are confidential information intended for a specific addressee and purpose.  If you …

DOCUMENTS, FINANCIAL INSTRUMENTS, IAS 2, IAS 21, IAS 39, IFRS, IFRS 7 »

[14 Dec 2008 | No Comment | 2,806 views]
Financial instruments

Does it exist a definition for financial instruments?

I am confused with the different perceptions of financial instruments.
Thanks.
Sincerely yours
Emilio

 
Dear Emilio,
 
a Financial instrument is any contract that gives rise to a financial ass…

AUDIT, IFRS, OTHER, TAX »

[14 Dec 2008 | No Comment | 858 views]
Budget

Dear All
 
Can any body tell me that is budget only for expenses or can be for Asset, liabilities and income also. My openion is it can be for all (Asset, liability, Expense and income). Please help me according to the IAS/IFRS.

Best regard…

AUDIT, BUSINESS COMBINATION, CONSOLIDATION, DOCUMENTS, FAIR VALUE, IFRS, INTERNAL AUDIT »

[14 Dec 2008 | No Comment | 3,515 views]
Acquisition accounting

Dear all,
I have a question in relation to acquisition accounting in accordance with
IFRS3. In this case a parent company A acquires all the shares in
subsidiary company B for (say) 50M. This cost price represents a goodwill
over the fair value of the …

AUDIT, IFRS, TAX »

[14 Dec 2008 | No Comment | 1,157 views]
Cash basis – accrual basis

Dear all,
during an interview I was asked this question and I am still in doubt about the reply.
If you need to audit an entity which is going to change from a cash basis to an accrual basis accounting system, what would you audit first and why?
Thanks…

IFRS, TAX »

[14 Dec 2008 | No Comment | 646 views]
Vigilance claim in respect of tampered meter

Dear All,
 
if in case an assessee has been served vigilance claim from electricity department. will this be treated as penalty under income tax act and be disallowed?
 
Regards,

Sanjay

That sounds like a local statute issue rather than a pur…

AUDIT, CONSOLIDATION, DOCUMENTS, IFRS, INTERNAL AUDIT »

[14 Dec 2008 | No Comment | 3,625 views]
Consolidation , Foreign exchanges ( rates)

Dear All , Kindly need your urgent help
We Have more than 10 companies in different countries and using different currencies :
1- our holding company send us every month end the conversion rate that we should use for each currency in order to be able…

AUDIT, DOCUMENTS, FINANCIAL INSTRUMENTS, IAS 39, IFRS »

[14 Dec 2008 | No Comment | 6,522 views]
Categories of financial assets IAS 39

Hi, Members.
 
In regard to the above subject please help me to answer the following question.
 
One of the four categories of financial assets as classified in IAS 39, Financial Instruments: Recognition and Measurement is subject to “tainting…

DOCUMENTS, FINANCIAL INSTRUMENTS, IAS 2, IFRS »

[14 Dec 2008 | No Comment | 4,102 views]
IAS 2

Dear all,

Is it fair to value inventory at updated standard costs even if the inventory item was manufactured at a time when standard costs were much lower?
 
Regards,
Grace

Hi Divine
I experienced this issue in 1995
It is fair and possible but al…