My company made the following aentriess for revaluation of fixxed assets
Fissed assets Dr
Revaluation AC cr
At the end of the year entries made for dep. are as follows:
Depreciation Account Dr
Fixed assets
(With full value of the assets)
Revauation reserve accounts dr
Depreciation accounts
Depreciation for revalued amount
Depreciation account Dr
Profit and loss account
Revalued depriciation charged to Profit and loss account
Any one can help me whether the transaction are correct or what will be the correct entries. please suggest me with example
Thanks

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IFRS 6 allows companies to only perform impairment testing on exploration & evaluation (E&E) assets if there are certain indicators of impairment. Usually impairment is measured at the cash generating unit on a regular basis regardless of indicators.
What does a mining company that has primarily these E&E assets do for impairment for the rest of its assets? If all the other assets (say property plant and equipment) belong to the same cash generating unit as the E&E assets, does the company only measure for impairment when there are indicators? Or …

Dear all,

 
Is it possible to reclassify asset held for sale back to PPE?
 
 
Thanks,
Grace

Dear,
the guidances in this case are explianed in IFRS5.26 to IFRS5.29
Best regards,
         

Dear DivineIt is possible to reclassify an asset held for sale back to PPE if the criteria for classification are no longer met or if there is a change in plan for sale. The asset would need to be remeasured. Please refer to paragraphs 26 to 29 and 42 of IFRS 5 for more details on measurement and disclosure.
Regards
Vatsala

DEAR grace,
 
yes it is possible  but in that case …

Friends,
I have a query regarding a case, which is like that:
A company have a practice to set off its creditors against it debtors and for that it gives a note for contingent liabilities , now the company don’t want to give the note for contingent liabilities as it is affecting its borrowing capacity , is it possible for company to do so, is there any case law for that, Please Guide me it is urgent.
 
Thanks
Abhishek

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Dear Members
Please advice me on the following issue
If the comany has a barren free hold land but intends to construct it in the near future and use for leasing it to get the rental income. please suggest should i treat this barren land as of now under IAS 16 or under IAS 40.
Please advice.
Best regards

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Hi everybody,We use the words “Incurred” and “Accrued” interchangeably in our accounting related issues. Is that accurate? or is there any difference between the two words??

Cheers,

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Sir,
I am a Trainee Student of Chartered Accountancy of Pakistan (ICAP) and doing articles in Anjum Asim Shahid Rahman Chartered Accountants Karachi.
I have started my study of Mod-E and need of comprehensive article on different IAS so Please
mail me a soft copy of IAS-21 (The Effects of Changes in Foreign Currency).
Thankful to u for this favor.
Regards,

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Dear All,

 
Recently my company has entered into a lease agreement with a leasing company. This lease is for 18 months and we have to pay 18 equal installments and an interest @ 16%. However, we will give to them a loan/security deposit of equivalent principal amount and they will give it back to us also in 18 equal installments @ 15%.
Now my question is what do we call the deposit that we are making. It is certainly not cash as we have no accounts with the leasing company and the …

Dear All Recently our currency in Zimbabwe was re-denominated by 10 000 000 000 factor, prior to this we imported stocks and converted them at prevailing stipulated rates as at that period. After the re denomination we have stocks at 0 value. According to standards is it possible to re value stocks so that we will be able to reflect true inventory valuation and cost of sales.

I appreciate your assistance
 Regards
 
 

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Dear All 
 
According to IAS 16, in an exchange transaction asset should be recorded at fair value.
 
My question is which assets fair value?
 
Asset given up     or
Asset acquired 
 
considering that we have the fair value of both.
 
 
Regards
 

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Good morning all
My client which is in the construction industry has been receiving assets in exchange for construction revenue. The Standards say
IAS 18
When goods are sold or services are rendered in exchange for dissimilar goods or services, the exchange is regarded as a transaction which generates revenue.  The revenue is measured at the fair value of the goods or services received, adjusted by the amount of any cash or cash equivalents transferred.  
IAS 16
In an exchange transaction the cost of assets acquired should be measured at the fair value of the …

As per IAS 23, borrowing costs on qualifying assets should be capitalised:

To the extent that an entity borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the entity shall determine the amount of borrowing costs eligible for capitalisation by applying a capitalisation rate to the expenditures on that asset. The capitalisation rate shall be the weighted average of the borrowing costs applicable to the borrowings of the entity that are outstanding during the period.
What if a company has interest free loans from shareholders in addition …

Is it okay to set off receivables from minority shareholders aganist
minority share of profit at the balance sheet date.  

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As per IAS 23, borrowing costs on qualifying assets should be capitalised:
To the extent that an entity borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the entity shall determine the amount of borrowing costs eligible for capitalisation by applying a capitalisation rate to the expenditures on that asset. The capitalisation rate shall be the weighted average of the borrowing costs applicable to the borrowings of the entity that are outstanding during the period.
What if a company has interest free loans from shareholders in addition …

My client A acquired 66% of B from C, included in the contract was the clause that C can exchange the remaining shares in B with shares in A.
Is it an embedded derivative?
Do I only disclose this in accounts or should I calculate its fair value/Intrinsic as part of my acquisition calculations.
If I have to calculate the fair value do I use the normal Black Scholes etc?
Thanks
Aneel

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Deal All , as per IFRS we should take monthly accrual for the yearly holiday leave . But in our case
The company doesn’t pay 13 month or 12 month plus 1 month leave the system is that we got 12 months salaries and 1 of these months will be off so actually we work 11 months we got paid for 12
My question is : since the salaries exist in the PL on a monthly basis an accrual for holiday will not duplicate the expenses ?
or we consider it as …

Non-Recurring and Extraordinary Items or Events
In the unpredictable world of business, events will arise that are not expected and most likely not occur again. These one-time events are separated on the income statement and classified as either non-recurring or extraordinary. This allows investors to more accurately predict future earnings. If, for instance, you were considering purchasing a gas station, you would base your valuation on the earning power of the business, ignoring one-time costs such as replacing the station’s windows after a thunderstorm. Likewise, if the owner of the station …

Hello
I just want to ask you if somebody of you can give me information about using of IFRS in Europian Union.
Thanks,
Eli

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Dear All,
 
Can any one suggest me the following :-
1.what is the due date for payment of preference dividend declared by private company ? what is the rate of interest if the dividend is not paid with in the due date?
2.what is the rate of interest nominally charged if any deposit accepted from related party?
 
Please reply for the above with IFRS reference standards.
 
Sivasankar

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If the entity’s policy is to capitalise borrowing costs and obtains a foreign loan probably taking advantage of the lower interest rates, any exchange differences should be capitalised as will during the period of construction of the qualifying asset.
Regards,

Nyasha

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