DEPRECIATION

/Tag:DEPRECIATION

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

Capex Financing

Dear Experts, If an asset is purchased from a supplier for which payment is to be made in 3 years on monthly instalments including cost + finance chg. Can we show assets and Capex loan in B/S and depreciation on assets can be charged. Hemant

By |February 14th, 2009|IAS 16, IAS 38|1 Comment

Revaluation

My company made the following aentriess for revaluation of fixxed assets Fissed assets Dr Revaluation AC cr At the end of the year entries made for dep. are as follows: Depreciation Account Dr Fixed assets (With full value of the assets) Revauation reserve accounts dr Depreciation accounts Depreciation for revalued amount Depreciation account Dr Profit [...]

By |February 9th, 2009|OTHER IFRS|3 Comments

About normal capacity

Dear all Can someone tell me how do you define normal capacity of IAS 2? In IAS 2, it said that normal capacity is the production expected to be achieved on average over a number of periods or seasons under normal circumstances. I am wondering how to caculate the normail capacity? ex: one machine can [...]

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

Capitalization of Visa Charges

Dear All Greeting In UAE work visa would be for 3 years and cost would be paid by the employer and in my company it is practice to debit as administration expense. Employees must has to complete 3 years and if he/she leave the job prior to three years he has to pay back the [...]

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

IFRS-1

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 [...]

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

Calculation of deferred tax

Can any one help me for calculation of deferred tax under deductable timing diference Example: writeen down value of fixed assets as pert accounts-200          writeen down value as per tax                      150 please privide the soluision by giving effects in the profit [...]

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

Prior year adjustment

Dear all, As I know , as per IFRS there is no prior year adjustment anymore , and back dated entries are not allowed once the year closed and figures reported , Hence the actual variance will be booked in the next year PL , example : if company A , estimated an income in [...]

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

Date of comercial production

Dear all, can anyone please guide me if there are any guidelines as to establish date of commercial production in a manufacturing concern in IFRS. thanks and regards deepak Hi Deepak, I assume you are inferring to either intangible assets. There is n...

By |December 14th, 2008|IAS 16, IAS 38, IFRS, TAX|0 Comments

Allocation of depreciation

Dear All Can you please help me in allocating derection in the followin scenario In a glass industries one main machine is being used to produce mould and how we can allocate that depreciation of main machine either on the basis of apportionment or fully we will charge that depreciation to either main plant or to mould cost. What will be the accounting  entries in this case. Reagards. […]

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

Quasi Reorganization

I read this statement some where: The purposes of a quasi-reorganization are to restate overvalued assets to their lower fair values (and thus reduce future depreciation) and to eliminate a retained earnings deficit (and thus facilitate the declaration of dividends). How overvaluing  assets to their lower fair values will reduce the current deficit??? Although it [...]

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

Treatment for revaluation of land

Sirs/Madam, I would like to know weather or not it is permissible to issue bounce shares against reserve created out of revaluation of fixed assets, with references. If not, can the revaluation reserves be used for any purpose before the sale/ de-recognition of the fixed asset   No, the revaluation reserve is restricted to use [...]

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

Bank convenants

Hi, I have just recently starting working in a country that is about to adopt IFRS (2009) and was wondering if anyone had had experience with possible violations to debt covenants during the transition period. I am guessing that clients will have to communicate with their banks about the impact IFRS will have on their outstanding [...]

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