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 operations.
My questions are:
1- Can the above treatment considered correct in anyway?
2- We want to transfer the land and building from PUD to Investment Property- what options do we have?
3- Are there any conditions to have the compination …

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. …

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 cover the loss of probable higher rate of interest co. went in to interest rate swap and as per that now co. has to pay only fix 4.5%  now libor rate has gone down so my question is, loss on interest swap will be transferred to …

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
Server Monitrong Software
Performance & Process Management Application Document Management System Data Cleansing HelpDesk System
IAS -38 states capitalization criteria •it is probable that the future economic benefits that are attributable to the asset will flow to the entity;
In that case a company in normal course of …

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 operating costs                                                                                3,300,000
                                                                  26,800,000
Less 
Revenue – ticket sales                                                                        (6,000,000)
               – other                                                                                     (800,000)
 
                        $          20,000,000
What is the correct accounting under IFRS?
What costs can be capitalized?

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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 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

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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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