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IFRS »

[15 Dec 2008 | No Comment | 3,468 views]

dear sir or mam
 
When one company adopt the IFRSs 1 first time then what are the irems exempted from national GAAP in the case of convergance to IFRSs.
 
Thanks
 
Sincerely yours,
Rakesh

dear rakesh

pls read ifrs 1 and see the exemption given for the same
there are 10 exemptions
Regards
Jignesh

 

We have a projector & purchased 6 years back @ 17000/- we have depreciated 8000/- as of now and the NBV is 9000/-. Now the market value is 5000/-. Do we need any accouning treatment as per IFRS.
Upul

Dear Upul,
IAS 16, Property, Plant and Equipment (PPE), allows a choice …

IFRS »

[15 Dec 2008 | No Comment | 4,820 views]

The Company has taken a loan for construction of projects. A part of
amount is kept in FD with the Bank. Interest is capitalized on the
amount paid as per payment certificates like draw down. If the project
is capitalized and 2 payment certificates received after the
capitalization date. Now question is whether interest will be
capitalized on amount paid after capitalization date or expensed out.
Hemant

I think after the project is completed, the interest expenses, is charged to
P&L.
Krishnendu

Query is not clear:

1. If the loan was taken for construction, interest component to the date of capitalization …

FINANCIAL INSTRUMENTS »

[15 Dec 2008 | No Comment | 4,256 views]

Dear all,
 
An answer to the following question would be much appreciated:
 
If no hedge accounting is applied, should all changes in fair value of derivatives be recognized as financial income or expense (so below operating result) or is recording of the change in fair value within operating result allowed?
 
 
Further, does anyone have one clear memo, including example journal entries of the various possble accounting issues (cf hedge, fv hedge net investment in foreign operation) applying hedge accounting and not-applying hedge accounting and if possible, all other accounting (including journal entries) not applying …

FINANCIAL INSTRUMENTS »

[15 Dec 2008 | One Comment | 4,489 views]

Hi
 
Can anyone respond to my email below?
 
Thanks and regards
 
Catherine
Hi
 
I would need your assistance on how to account for futures/options in the financial statements.
 
Thanking you in advance for your kind assistance.
 
Regards
Catherine
Catherine,

 
Have you looked at IAS39 already, because depending on that you can or cannot apply hedge accounting. Basically you have 2 methods either Cashflow hedging or fair value hedging. If you want to do hedge accounting you will be required to do a lot of prospective and retrospective testing to prove the effectiveness of your hedges. If you don’t do hedge …

IFRS »

[15 Dec 2008 | No Comment | 2,455 views]

Hi all,
A non-profit organisation based in Virginia, USA was donated part of
real estate’s value.Currently the real estate is being adminstered by
an agent.I would appreciate if any one could hint me what both IFRS
and USGAAP recommends for treating such transaction.
Thank you
Aklilu

Hi,
When you say value, I assume a cash donation was made to buy the
property. Is the property been transferred in the name of this
organization. If it has, this means that risks and rewards of
ownership have been trasferred.
I would assume, IAS 20, Grant accounting rules will need to be followed.
The amount of …

AUDIT, IFRS, OTHER, TAX »

[14 Dec 2008 | No Comment | 857 views]
Budget

Dear All
 
Can any body tell me that is budget only for expenses or can be for Asset, liabilities and income also. My openion is it can be for all (Asset, liability, Expense and income). Please help me according to the IAS/IFRS.

Best regard…

AUDIT, IFRS, TAX »

[14 Dec 2008 | No Comment | 1,156 views]
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…

AUDIT, CONSOLIDATION, DOCUMENTS, IAS 36, IFRS »

[14 Dec 2008 | No Comment | 3,730 views]
Impairment Goodwill

Por favor podría alguien indicarme en donde puedo encontrar
información sobre metodologías para la medición del deterioro del
Goodwill. Sería Adecuado usar multiplos como base para su medición.
Please could someone tell me where can I find inform…

IFRS »

[14 Dec 2008 | No Comment | 6,306 views]

Is there any guideline for measurement of loan impairment and recognition of interest income by using effective rate method

Asim

well Esther the UK leads the path i.e. the UK tax authorities are the only ones in Europe which accept IFRS reporting to the extent that its website http://www.hmrc.gov.uk/ does have a section allocated to differences between IFRS and UK GAAP
I wish in Germany they had the same thing!!!!!

 

Asim
 
Below is the list of applicable paragraphs from IAS 39 for measurement of loan impairment:
 

                 Financial assets carried at amortized cost

63
If there is objective evidence …

IAS 38 »

[14 Dec 2008 | No Comment | 2,193 views]

Please let me know about cost of create new web sit
will it be general expenses or intangible assets 
So, which treatment prefered to be confirmed to international accounting standard
 
thank you
 
Mahmoud Gbr
Auditor

General expense: if there is no link to future cash inflow through this
 
Intangible asset: if satisfy the conditions of IAS 38 ..cash inflow, technical feasibility, intention, available market etc.
 
Thank you,
Regards,
Debdulal

Do you expect with relative certainty that the development of the new web will bring new cashflows to the company?

 
If yes-then it should be recognised as an asset
If not-it is an expense and should be …

IFRS »

[14 Dec 2008 | No Comment | 2,845 views]

Hi ,I m doing a project on objective of financial reporting ,but one of te question is heating on me and i will really appritiate if some of u can give me ur suggestion.
 
well ,the question is whether the stewarship and financial report should have seperae objectives or not ? Cause some of te articles has argues that the financial report is not giving useful decision making information to all users ,and creditors and inverstors are the one left off . as Andrew Lennard argued ,so i wanna know whether it should …

IFRS »

[14 Dec 2008 | No Comment | 2,129 views]

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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AUDIT, DOCUMENTS, FAIR VALUE, FINANCIAL INSTRUMENTS, IAS 39, IFRS, IFRS 7 »

[14 Dec 2008 | No Comment | 3,700 views]
IFRS 7

Hi

 
Please let me know the salient points in IFRS 7 which has been recently been made a mandatory disclosure in the audited financial statements.
Regards
Raghavan
 

 
Under IFRS 7 there are 12 requirements:
 

Requirement 1
Reconciliat…

DOCUMENTS, FINANCIAL INSTRUMENTS »

[28 Aug 2008 | No Comment | 2,741 views]
Cash hedging

Hello,
 
Can anybody help me understand cash hedging?
 
Thanks.
Brenda 
Dear Brenda
Cash flow hedges
Cash flow hedges are used to hedge exposure to variability in cash flows that is either attributable to a particular risk associated with a recogn…

IFRS »

[28 Aug 2008 | No Comment | 5,611 views]

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 …

IFRS »

[28 Aug 2008 | No Comment | 2,832 views]

Dear All 
i am working in a home finance company which is subsidary of german company, due to which we are require to prepare the financial from IGAAP to IFRS.
i have the following questions:-
1.we take a loan and in taking loan that we usually pay a processing fee.
2. we pay security deposit for taking Building on rent.
3. we pay Fringe benefit tax on varoius items
 
i want to know,how the above mentioned items will be Accounted in Books in IFRS.
thanks in advance
Vivek

Hi , I had read IAS 32-39 and if you like …

IFRS »

[28 Aug 2008 | No Comment | 2,752 views]

If an institution is recognizing income by using flat rate method, but IFRS requires to recognize by using effective rate method. My questions are:
a) policy remains but financial statements it should be based on effective rate. Is it?
b) How to convert portfolio by using effective rate.?
 
 
asim

I don’t think so, see this link

 
http://en.wikipedia.org/wiki/IFRS
 

 

Hello:
 
Can anyone confirm if the PRC has officially transitioned to full IFRS GAAP reporting and if so, what was the effective date?  Are companies mandated to report in IFRS GAAP or can they still report in PRC GAAP up …

IFRS »

[28 Aug 2008 | No Comment | 3,621 views]

Dear all
Please help in deciding what items can be regarded as cash equivalents
>
Thanks in advance!
Regards,
Lina

Cash equivalents are financial instruments that can be easily converted to cash, have high liquidity like stock of quoted companies.

Best Regards.
Alberto

 
 

Lina,
I woul suggest to take a look into IAS 7.6: Short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insgnificant risk of changes in value. Normally only an investment with a short maturity of three months or less from the date of acquisition.
Regards
Ingo

It usually includes …

CONSOLIDATION, DOCUMENTS, IFRS »

[28 Aug 2008 | No Comment | 3,367 views]
Merger Entries

Dear all,
 
 
Please help in confirming the merger entry for the following case:
 
Company A acquired 50% interest in Company B during 2004. The other 50% was held by the Company C, Company A’s Parent Company. Upon acquisition, Company A r…

IFRS »

[28 Aug 2008 | No Comment | 1,882 views]

I have some clients asking for studies that show the cost of conversion to IFRS for companies that have been through this.  Does anyone know of resources for this?
 
Thanks
Gord

 
 

and if anyone could link to any material about IFRS Conversion Project Management staff?
 
Thanks.
 
Lado

Hi Gord,
 
I don’t have info about it, but I would strongly recommend to include in the estimation the costs of following up on the quality of the conversion and further system modifications. Sometime those are bigger than the actual initial conversion costs.

Regards,
Marc

 
 

This is a very difficult question to answer because …