ACCRUAL

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Operating lease – Lessee’s books

Hi All, Accounting of lease rentals for operating lease in lessee's book is ruled in IAS as under : "Lease payments under an operating lease shall be recognised as an expense on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern of the user's benefit." My [...]

By |December 15th, 2008|IFRS|0 Comments

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...

By |December 14th, 2008|AUDIT, IFRS, TAX|0 Comments

Capitalization of WIP

Hello,   If a company asks a third party to construct a fixed asset and at the end of the year, the fixed asset is not complete, but you have a statement of the costs incurred, would you capitalize the costs incurred under Construction in Progress with counterpart in accruals. Or would you record an entry [...]

By |December 14th, 2008|IAS 2|1 Comment

Incurred Vs. Accrued

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, […]

By |August 28th, 2008|OTHER IFRS|0 Comments

Holiday accrual

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 unproductivity expense??? tony […]

By |August 28th, 2008|OTHER IFRS|0 Comments

Standards for sme’s:not for profit organizations

Dear Elena, I understand that accounting standards for smes are still in the drawing boards after asking for comments and suggestions from different sectors. I am a practising accountant in the Philippines.  My concern is on the issue of not-for-profit organization, which in the Philippine context are also known as non-government organizations (NGO's). These NGO's are generally [...]

By |August 27th, 2008|IFRS|0 Comments

Fwd: [IFRS List] standards for sme’s:not for profit organizations

Forwarded conversationSubject: [IFRS List] standards for sme's:not for profit organizations ------------------------From: ann silvers <annsilvers@yahoo.com>Date: Wed, Nov 28, 2007 at 11:40 AM To: ifrs@ifrslist.comOn 11/27/07, ann silvers <annsilvers@yahoo.com> wrote: November 27, 2007   Dear Elena,   I understand that accounting standards for smes are still in the drawing boards after asking for comments and suggestions from [...]

By |August 27th, 2008|IFRS|0 Comments