Dear all
Seasons greetings!!
We have purchased a fixed asset with value of USD 100,00/- specifically at the request of our client. We had the same equipment, but the client need two instead of one and the client agreed to reimburse the cost of additional one, once we install the same on site.
I just want to know whether I can capitalise the equipment as fixed asset in my books of account and claim depreciation on the asset.
The asset will be in our name and we are the owners of the asset. …

I work in a company specialized in doing MRO for aircrafts, the issues that the work orders of the maintenance and repair takes from a month to 4 months direct salaries and materials are issued to the tasks and salaries are expensed in monthly basis and appears in the P&L while revenue will recorded once the job is completed and invoice is issued
Percentage of completion is not adopted, and the idea is to charge the cost to job order as work in progress (balance sheet) and recognize the revenue and …

Dear all,
We have given a contract to ship builders for construcing a vessel. As per the contract terms, if the builder delay the delivery of the vessel beyond agreed delivery date, they have to give us penalty of USD 10,000 per day. Now they have delivered the vessel after 373 days of the agreed date and we have received the penalty from them. How we can account the penalty income in our books, either as penalty income or by reducing the capital cost of the vessel. Kindly refer relevant IFRS …

we have a contract for development of a fixed assets, as per the contract:-
Total Contract amount =  260 Million AED
We have to pay this amount in Euro that is already fixed as per the contract it is 4.49 AED per Euro
whatever is the rate prevailing currently doesnt matter bcoz it has been already fixed in contract,
so my concern is exchange loss on payment will be added to the value of fixed Assets or
will have to transferred to P&L A/c

Can someone please share thoughts around generic accounting issues in the marine industry. The nature of activities will involve using small ships (bareboat) to provide marine terminal services to clients on ports around the world ? From the top of my head, I can see following major issues to be considered:
- Revenue recognition
- Repair cost of ships and capitalisation of subsequent cost
- Treatment of lease income /expense if boats are let out/taken on lease
- Derivative accounting issues (long term fuel contracts ?)
Any other issues or more light on above highlighted …

Case:
 Party gets into a long term construction contract to prepare the machinery which takes 2 years to complete
 Cost elements – Labor $ 3mm and Materials $ 5mm Total $ 8mm
Revenue against – Labor $ 10mm and Materials $ 10mm Total $ 20mm
Margin – Labor 70% Material 50% on total project 60%
 Year 1 Cost incurred Labor $ 4mm and Material $ 2mm
 What should be the revenue that can be recognized against the same? The policy is % completion method.
 Business contention to recognize revenue on 70 and 50% margins respectively.
 What the …

Can the arrangement fee (agengy fees, structuring fee and legal charges) paid to obtain a long term loan be deferred and subsequently amortised over the tenure of the Loan?
Kindly give references from IFRS.
Regards,
Ali

Question for anyone that has dealt with this issue:
As at its transition date, a company will need to review its assets (CGUs) for indicators of impairment. Some of the indicators suggested in IAS 36 refer to “the period”. Some indicators are current – as of that date.
I have assumed that “the period” refers to the previous annual period. This assumption is based on” (a) the fact that for a regular year, the period would refer to the previous annual period, and (b) IFRS 1 indicates that the same estimates used …

Hi all,
Any idea on this please…
a lease to own vehicle for two years. but a bank will finance the monthly lease fee. how should this be treated and booked?
thanks!
Brenda

Dear Experts,
As we know that cash flow from operating activities includes changes in Accounts Paybles. This seems okay for a company having accounts payables related to company’s normal operational expenses. But what if Accounts payable includes payable against normal operating expenses and payables against construction of buildings.
Company’s business is constrcution of buildings and lease on rent under IAS 17.
If payables against construction is included in cash flow from operating activities it gives a large value of cash inflow from operating activites if 2007 payables paid out in 2008.
Do …

Hi All,
I would  like to know what the best treatment for Free Goods offerd from a supplier to a retail pharmaceutical company . Actulay the offer is presented in two types :
1- implicit in the vendor invoice as an additioanl free quantity with a 0 value , means the invoice contain both priced goods with $ value and additional free goods with 0 value.
2- Seprate free shipment with a total 0 value invoice.
Please advice the accounting treatment for this case.?
Thanks

Hi
Does any one have any write up for accounting for carbon trading or contracts for Carbon emmission reductions.
Niranjan

Dear All
Please help me in giving the necessary accounting treatment and in preparing the cash flow presentation for the below mentioned query
Query:
A holding company ABC has three subsidiary namely DEF(100% subsidiary), GHI (100% subsidiary) and JKL (60% subsidiary). Now ABC has transferred its entire holding of GHI and JKL to DEF. Against the sale consideration DEF has alloted its shares to ABC.
Now please advice at the time of consolidation, what accounting treatement is to be passed and how to present the cash flow.
your early response will be able to help …

Hi all
My company has a 50% shareholding in a joint venture company, A. A has a wholly owned subsidiary (B) and is going to transfer its interest in this subsidiary to its shareholders (i.e. 50% to my company and 50% to the other joint venturer).
How shall my company account for such purchase of 50% shareholding in B? Shall I use purchase accounting (i.e. to fair value the net assets of B)?
Thanks

Dear All,
It is to request you all for reply of my question stated below: “Company A” grants license to “Company B” to sell its products in exchange of license fee to be paid to “Company A”.
All transactions of “Company B” will be reported to “Company A”, i.e. “Company B” will be perform operations under the control of “Company A”.
How will both the companies account for this license in their books?
Thanking you in anticipation. Regards Waliullah CA (Module D) Institue of Chartered Accountants of Pakistan (ICAP)

Dear Experts,
Please give your opinion on the following on IAS-8
An expense provision was taken twice, Whether IAS 8 will apply and need restatement of previous year or to be considered as liability w/back and take it to income.
An estimate of an expense was taken on adhoc and that was in excess of what paid in subsequent year, Whether IAS-8 will apply and restatement is required or to be considered as liability w/back and take it to income.
Thanks,
Hemant

Dear Experts,
Could you please give your feedback on IAS-17
A company owns buildings under PPE and renting our applies IAS -17.
Whether car park leasing will also to be accounted as per IAS-17 or as other income. If yes, then what if there are more than 1000 tenants with an amount of 1000 p.a.
Whehter temporary open space rent also covered in IAS-17. If yes, then whether amortization is required or direct in one month.
Whether Space rented out for ATM also covered in IAS 17. If yes, then whether amortization is required or …

Question:
When you’re talking about material class of similar items, does that mean for example that you have to break rent out of G&A line item?  Both rent and G&A are material amounts and so which is the standard way to do things.
(1) group both in one line item and disclose in notes the two material amounts
(2) group in unique line items
Thanks in advance

My company is involved in renting of properties and selling of developemt properties. We currently have development properties that are held for immediate sale. However, due to the property is completed and vacant, the unit is available for rental to staff (for recreation purpose) in order to earn rental income. As such, can we still classify the development property as asset held for sale?
The argument is that the asset is saleable at any time if there is interested buyer and there are ongoing plans to make the unit saleable. Hence …

Dear members,
May you please advice me on calculating terminal benefits for an employee
Let’s say Mr. E has been working with ABC Company Ltd since 26th June 2007 and is to be terminated in 30th June 2009 after the business closure. His starting salary was US$300 per month plus 15% housing benefit totalling US$345. After salary review his new salary is US$334 per month plus housing benefit 15% totalling US$384.1
Assuming that Mr. E is being deducted 10% from his gross salary per month by National Security Fund and 9% as …