I am having a difficult time in understanding the effect of foreign exchange gains/losses on the statement of cash flow, in particular relating to the following scenarios.
My auditor has advised the following to me, the method I use for preparation is the Indirect method.
I – Foreign currency operating transactions settled in the period.
I was advised that there is no requirement to adjust PBT
II – Unsettled foreign currency operating transactions
Again I was advised that there is no requirement to adjust PBT, because the movement in the related receivable or payable
included in the …

Dear Experts,
As we know that cash flow from operating activities includes changes in Accounts Paybles. This seems okay for a company having accounts payables related to company’s normal operational expenses. But what if Accounts payable includes payable against normal operating expenses and payables against construction of buildings.
Company’s business is constrcution of buildings and lease on rent under IAS 17.
If payables against construction is included in cash flow from operating activities it gives a large value of cash inflow from operating activites if 2007 payables paid out in 2008.
Do …

Dear all,
I have to translate the financial statements from local currency (not a hyperinflationary economy) in EUR according IAS 21 (EUR is presentation currency) for a stand-alone company (no consolidation needed) for the first year of activity (no openings).
Income statement is translated at the average exchange rates (sum of each month separately).
Balance sheet is translated at the closing rate (end-of-the-year exchange rate) for all items (including fixed assets and equity).
First case:
The equity contains the net profit/loss (already translated at the average exchange rates). To obtain the balance it result a “translation …

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

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Hello to everybody,
I want to prepare 31.7.2007-31.07.2008 and 31.07.2007-31.07.2006 cash flow statements.
How can I prapare according to the indirect cash flow method? Which issues should I consider?
 
Thanks for your help.
 
Evrim

Good morning to all

 
Please let me know the salient points in related to Hedge (SWAPs, Collars, etc) and other treasury instruments present in differnt IFRS. Futhermore, kindly refer me certain website in this regard as well.
 
I shall be looking forward and thanks in advance.
Regards
 
Salman

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Dear all,

Good day!

A holding company had a subsidiary which is 100% owned. In 6 March 2006, the subsidiary issued new shares from $2 to $50,000 which changed the shareholdings from 100% to 40%.  As I read this is considered as deemed sale. The year ended of the holding company and the subsidiary is 31 December 2006.

These are my queries:

In view of the Holding company, how much is the equity take up considering the date of deemed sale?

In view of the holding company, how to compute for the gain/loss of the deemed …

Hi All
This is Muhammad Naveed
I have a query regarding the consolidation of subsidiaries. Does IAS-27 allow us to not consolidate subsidiaries which are immaterial for the group?
Is it specifically mentioned somewhere in IAS?
 
Regards
Muhammad

Well Naveed
Actually materiality is an underlying concept of the Financial Statements.So anything which is immaterial needs not to be disclosed or adjusted.
 
Thanks and regards

IAS 1 is the overall standard to refer to:

Materiality and Aggregation
29.        Each material class of similar items shall be presented separately in the financial statements.  Items of a dissimilar nature or function shall be presented separately unless …

Hello to everybody,
I want to prepare 31.7.2007-31.07.2008 and 31.07.2007-31.07.2006 cash flow statements.
How can I prapare according to the indirect cash flow method? Which issues should I consider?
Thanks for your help.
Evrim

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