To all, Can any one clarify whether it is necessary for provision for commission to agents to be made for the premiums not yet received, at the end of every month. jay For any provision, I think you'd first need to look at IAS 37 paragraph 14. Is there a present obligation as a result [...]
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 [...]
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 [...]
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 [...]
Dears Would you please explain me what is the difference between affiliates and subsidaries, and then if there is any difference in accounting treatments.( i am asking these question w.r.t an investment co.) 2nd thing is how i will treat the personal expenses of a partner which are being paid by the co. and where [...]
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 [...]
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...
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...
I am looking for a few things:1) Quality example of financial statements with the income statement presenting expenses classified by nature (as opposed to function).2) Quality example of early adoption of the amendments to IAS 1 with a) Statement of Comprehensive income as one statement, and b) Statement of Income separate from Statement of Comprehensive income.Any [...]
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...
Q. How are ‘Prior year’s expenses defined and treated? […]
Hi , If provision for Bonus was taken in 2007 for X amount and financial statements for 2007 closed and reported , and in 2008 the payout of Bonuses was more than the provisions amount. As per IFRS , what is acceptable?? 1- should we classify the over expensed amount as Prior year expenses ( [...]
Dear all, I cannot find how can I book the fx loss, gain into profit and loss account. Should I book it as other cost/revenue or financial cost/revenue? -- Taczmann Book it as a separate component of financial expenses and income, so the categories should be: Interest income Interest expense Foreign currency gains (losses) Net [...]
Dear All I am going to attend a job interview at Deloitte about the position of Audit. My BA and MPhil degree are not relevant to accounting or finance, and I don't have any background knowledge about audit. I know in the interview you might ask me to give some examples of working in [...]
Morning All, Our company incurs a lot of expenses in terms of projects work like traveling. Substance, entertainment allowances etc We also do incur expense interims of the preliminary expenses like site visits, negotiating meetings. Are these expenses to be expensed or capitalized as we seems to have a different view of this from IAS [...]