Project cost – Leased land

Dear all, This is my first participation in this forum. i have a question regarding the land as an operating lease. We have a leased land used for a project. Currently the lease rent is being capitalised as land costs- Property Under Development, on the basis that this costs incurred to bring the assets into [...]

By |April 2nd, 2010|OTHER IFRS|2 Comments

Fixed Asset Capilization

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 [...]

By |December 28th, 2009|OTHER IFRS|9 Comments

Loss on interest rate swap can be capitalized?

For development of qualifying assets we took a loan from bank, as per ias 23, interest cost on loan taken for qualifying assets will be capitalized to those assets, as per the loan agreement interest rate was libor+1.5, initially libor was high so to c...

By |November 23rd, 2009|DOCUMENTS, FINANCIAL INSTRUMENTS, IAS 23|7 Comments

Software Capitalization / Expensed out

Dear IFRS Experts, Could you please give your opinion on the following: 1. Computer softare is to be considered as Intangible Assets or PPE 2. Which type of computer software can be capitalized / expensed out Whether following type can be capitalized or expensed out Photoshop Illustrator Adobe Writer AutoCAD AutoCAD 3D Max AutoCAd lite [...]

By |November 11th, 2009|IAS 38|3 Comments

Capitalization expenses IFRS

Leo wants to capitalize all costs of NSL on NSL’s books until it has completed its first year of operations.  In addition to the franchise fee, $20 million will have to be spent on the following:  Acquisition of player contracts                                                               $ 12,000,000 Advertising and promotion                                                                         1,500,000 Equipment                                                                                                 3,200,000 Wages, benefits, and bonuses                                                                 6,800,000 Other [...]

By |April 9th, 2009|IAS 38|1 Comment

IAS 23 – Borrowing cost capitalization

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 [...]

By |March 22nd, 2009|OTHER IFRS|3 Comments

System upgrade

Dear colleagues, We have recently spend money on upgrading one of our main systems that we use at work and the cost of this upgrade (including licences) is £42k Could this be capitalised? Many thanks, Sheetal Financial Controller

By |February 27th, 2009|IAS 38|7 Comments

Capitalization of repairment expenses

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 [...]

By |February 22nd, 2009|OTHER IFRS|6 Comments