Company A Parent company Own land and lease out to a company B a subsidiary. Company A will construct hotel for B. Construction cost will be debited to fixed assets. Company B has entered into an agreement with Company C for hotel operation.
Land leased will be an operating lease for both A and B
Hotel building will be capitalized in company A however will be used by company B for earning revenue
Is this correct.
What if company B has to incur some techincal expense during constrcution and pay to COMPANY C can these …

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

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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

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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

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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

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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 …

Dear Friends
Can anybody help me to prepare Cash Flow Statement? I mean, which transactions will be considered for cash flow statement, which will be ignored, etc.
–
Best regards
Mohammad

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Dear Experts,
I would like to request for your opinion on IAS 23
Funds Borrowed $100 for construction projects
Int @5% p.a.
Out of above $100, kept in bank fixed deposits $80 and balance utilized for construction projects. Later on further $40 paid from FD for Construction projects.
Interest on $100 accounted as interest expense
Interest exepnses DEBIT
Lender A/C CREDIT
Interest on FD accounted as interest income
BANK A/C DEBIT
Interest Income A/C CREDIT
Interest on amount utilized on construction projcets from the date of borrowing till completion of projects accounted as under:
CIP A/C DEBIT
Interest …

Dear all, kindly advice if the Suggested treatment of fraud,error e.t.c discovered which result in overstatement of cash book balance is correct:
Scenario
During preparation of bank reconciliation the cash book balance is discovered to be more by say $550,000.the accountant then decides to transfer this amount to debtors saying that this where it came from which ofcourse is not the right way of treating irregularity.
Suggested correcting entries
Dr cash and bank $550,000
Cr Debtors $550,000
Being correction of fraud, errors etc wrongly taken to debtors.
Dr Equity (There are no reserves) …

Dear All,
The company has equipment which will be used in providing their service (communication equipment). this equipment will be sold to the costomer or will be given to the costumer temporarly during the service period which the company provides. After the costomer ceased agreement with the company, the equpment is returned to the company and then can be used again. The asset’s useful life is more than one year. By your opinion, how can be treated such equipments according to IFRS, as Inventory, PPE or some other assets (for-sale)?
And if …

Hi to all members,
I am writing to inquire about the accounting treatment/entry for Treasury bills from placement to maturity.  Also, may I know the corresponding IAS/IFRS (if applicable).
Thanks! More power.

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

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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 treated as Property, Plant and Equipmrnt or intangible assets and be capitalized respectively? thank you
Salome

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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.

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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 part of P&L a/c i will show it.
Thanks & Regards,
Hameed

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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

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