The book “Accounting for Equity and Other Comprehensive Income: Dual Reporting Under U.S. GAAP and IFRSs”, by Francesco Bellandi, CPA, CA, ACCADipIFR, MBA, Sapienza Rome State University Press is now available on-line at at Dualgaap.com or Casalini.com. Paperback purchases can be ordered at redazionecasaeditrice@uniroma1.it.
This book examines and compares the reporting of stockholders’ equity as required by U.S. GAAP, SEC rules and regulations, and IFRSs (International Financial Reporting Standards), including proposed Exposure Drafts, Discussion Papers and relevant convergence efforts of the FASB and the IASB. The book also identifies grey …

Dear All,
This is regarding, i have an investment in Equity shares (100,000 @16) of listed company, where as at 31st Dec.2008 Mkt. Price for these shares was 31 per share. i want to know this increase in share price
how i will realise as at closing of FY-2008, by which accounts and in which part of P&L a/c i will show it.
Thanks & Regards,
Hameed

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Dear IFRS team,
We provide for early retirement or termination charges. Would it be
right in making the provision for the whole liability
(which could be for 5-10 years) that we know about in the year which
we make that commitment, or should this cost just hit the P&L as and
when it occurs?
Many thanks for your help,
Sheetal

Hi Sheetal
Termination benefits are recognized only when the employer has
demonstrated its commitment to provide the benefits with a formal
detail plan for the dismissal of group of employees, when the employer
has contractually agreed to pay a termination benefit to …

Dear Every one,

Can any one help to solve the following problems:
   
Say, XY is a joint venture company between X & Y with 70:30 proportion with issued capital of  $100. Now, Y intends to offload its share to Z company for a consideration of $ 80.
Now the question is how this investment would be shown in Z company’s F/S and which IAS/IFRS will cover this transaction ?
 
Also can any one share reconciliation between IFRS and US GAAP F/S ?
 
Advance thanks to every one
 
 
MM

Hi there,

My answer would be the following:
Y has a …

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 …

Hi

 
Please give me your opinion on forex loss on Assets. Do you capitalize it or do expense it to the foreign loss

This e-mail message and any attachment hereto are confidential information intended for a specific addressee and purpose.  If you are not the intended recipient, or a person responsible for delivering it to the intended recipient, you may not disclose, copy, distribute or take any action based on the contents hereof, or retaining this message or any part of it, in any form whatsoever. Any such conduct is prohibited and …

Does it exist a definition for financial instruments?

I am confused with the different perceptions of financial instruments.
Thanks.
Sincerely yours
Emilio

 
Dear Emilio,
 
a Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
for this, definition of financial asset and liability and equity have to be checked
jatin

Emilio–
IAS 32 Financial Instruments defines this in paragraph 11
Craig

There are various treatment of financial instruments as to their valuation, measurement and prepsentation. You may refer to IFRS 7, IAS 32 and IAS 39.
 

IAS 21 discusses …

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 …

Dear all.

I have a question on valuation of equity investments.
What is the best method to value an unquoted investment
Cheers
Shehzad  

Well for unquoted investment you could:
If there is substantial market and volume of such equity in the market then, you could value it using market price.
If there is not market, or if, say due to the legal implications (private co. for example), the equity cant have liquidity in the market due to restrictions in transferring such shares, net worth (intrinsic value) method can be used.
There are other options for valuations …

Dear friends,
Can you please give your opinion for the capitalization of the followings:
Modification to Existing Car Park
Construction of Temporary Car Park
Refurnish-Cooling Tower
Thanks
Hemant

Dear
I think that all of these costs should be capitalized.

–
Hesham

I agree with Hesham, it is to be capitalised, modification & refurnishing
extends the life of the existing asset, thus providing future benefits.& for Construction of Temporary Car Park, it is to be seen as to how
temporary is the car park. If it does not give you future benefits, like a
park for a couple of months, I think it should be …

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 and loos accounts and balance sheet. The company going to introduce deferred tax in first time

Hi,
 
Here is the solution::
U need to calculate PGBP in following manner taking into consideration timing differences :
 
PBT as per P & L a/c …

Dear all,

 
Is it possible to reclassify asset held for sale back to PPE?
 
 
Thanks,
Grace

Dear,
the guidances in this case are explianed in IFRS5.26 to IFRS5.29
Best regards,
         

Dear DivineIt is possible to reclassify an asset held for sale back to PPE if the criteria for classification are no longer met or if there is a change in plan for sale. The asset would need to be remeasured. Please refer to paragraphs 26 to 29 and 42 of IFRS 5 for more details on measurement and disclosure.
Regards
Vatsala

DEAR grace,
 
yes it is possible  but in that case …

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 2007 and took a
provision for this income for 1M $ in 2007
The actual income received in 2008 for 2M$ , the
accounting entry will be reversing the 1M$ provision and Book the 1M$
variance in 2008 PL
My question is , As per …

Any one please clarify me this….
Hari

Hi Team,
Will any one clarify the difference between Exceptional Items &
Extraordinary Items?
With reference to IFRS what is the disclosure policy for the both.
Thanks & Regards,
Hari

Hi Hari,
to my understanding according to IAS 1 there was for several years the
possibility to show extraordinary items in the P+L (IAS 1.85). Since
2004 this seems to be no longer allowed according to Dr. David
Grünberger who is member in the Accounting Regulatory Committee in
Brussels which decides upon the endorsement of new IAS/IFRS standards
within the EU. According to US-GAAP extraordinary items are …

Do anyone know where I can download copy of US GAAP and US GAAP APB?

Thanks Dessanti for your answer
Our position is less than 1%, we bought in the active market Euro a
little position to speculate in market price.
The IAS 39 don’t include equity investment as applicable financial
asset to recognized the gain or loss in foreign exchange in the
current period income statement, as its explain as follows:
Available-for-sale financial assets (AFS)…. … Fair value changes on
AFS assets are recognised directly in equity, through the statement of
changes in equity, except for interest on …

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…

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 …

Hi all,

We need some guidance in connection to apply the rules explained in IAS 21 related to if investments AFS in capital instruments is a non-monetary item. 
Theses equity investments were made without the intention of take control on any company, just receipt the dividends and sale it in a high level.
Thanks

 
 
Roberto

 
The standard applicable to AFS is IAS 39 even if the investment is in a currency other than your own reporting currency.
Despite the managerial intention, if the percentage of interest owned, directly or indirectly, by your company is …

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
Reconciliation of carrying amounts by classes of financial instruments to IAS 39 measurement categories (at least these categories are HTM, AFS, FVTPL, Loans and Receivables). An entity shall make the decision which classes of financial instruments are appropriate to the nature of the information disclosed taking into account the characteristics of those financial instruments.

Requirement 2
Description of processes for managing the …

Sirs and madam,
would like too seek help on how to disclose a share application monies?

thanks…

jinn

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