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Articles tagged with: FAIR VALUE

IAS 16, IFRS 1 »

[23 Jan 2010 | 5 Comments | 4,689 views]

Hello to all IFRS expert,
Our company elects to use fair value at the date of transition as the deemed cost $100 of an item of property, plant and equipment. How we can account the difference $5 of the carrying amount $95 of the asset at that date with its deemed cost $100? Is it correct that we debit PPE $5 and credit Return Earning $5?

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EVENTS, FAIR VALUE »

[20 Jun 2009 | One Comment | 2,178 views]

In May 2009 the IASB published an exposure draft on Fair Value Measurement.
Stephen Cooper, Member of the Board, Hilary Eastman, Project Manager and Henri Venter, Assistant Project Manager, will be introducing the exposure draft in a live web presentation on 30 June 2009 followed by a question and answer session. The exposure draft is open for comment until 28 September 2009.
The web presentation and the question and answer sessions will be recorded and made available on the project website soon after the presentation.
Register to participate
Each presentation, including the question and answer session, is expected to …

OTHER IFRS »

[18 Feb 2009 | 8 Comments | 7,977 views]

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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IFRS »

[15 Dec 2008 | No Comment | 3,426 views]

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 …

IFRS »

[15 Dec 2008 | No Comment | 3,474 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 …

FINANCIAL INSTRUMENTS »

[15 Dec 2008 | No Comment | 4,259 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 | 4,491 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 | 3 Comments | 33,371 views]

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 …

LOCAL GAAP vs IFRS »

[15 Dec 2008 | No Comment | 5,695 views]

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 …

IFRS »

[15 Dec 2008 | No Comment | 2,884 views]

Good day,
I would like to know how a company would record shares in its books if
these were received as a gift.
For example:
Shares held by Mr. Brown in Company A were transferred to Company B as
a gift. How would these shares be recorded in the books of Company B
under IFRS? Please refer me to the applicable IFRS
I look forward to your response
Regards,
Tracia

TraciaOne would need to refer to the terms and conditions of the transfer of
the gift for the more detailed aspects of recording the transaction.However, assuming that it is a vanilla …

FAIR VALUE »

[15 Dec 2008 | No Comment | 1,806 views]

Hi AllI need your help. Can anyone give me an example about fair value
hedge of AFS Bond by using Interest rate swap?Thank in advance.Mac

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IFRS »

[14 Dec 2008 | No Comment | 6,308 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 …

FAIR VALUE »

[28 Aug 2008 | No Comment | 3,778 views]

The company should have used the (IAS 16) from the beginning, as this is illiquid investment.
Any way it is possible to apply the cost principle instead of the value, but there should be a reversal of the previouse capital earnnings recognized under ( IAS 40).
In addition a footnote disclosure stating all the effects and details of the principle changes.
Regards
A.A . Rahman

Dear All,
Please guide me on the below
A Company is having land on which construction is going on. The intention of the company is to let it out for the rental …

IFRS, OTHER IFRS »

[28 Aug 2008 | No Comment | 2,324 views]

Good morning all
My client which is in the construction industry has been receiving assets in exchange for construction revenue. The Standards say
IAS 18
When goods are sold or services are rendered in exchange for dissimilar goods or services, the exchange is regarded as a transaction which generates revenue.  The revenue is measured at the fair value of the goods or services received, adjusted by the amount of any cash or cash equivalents transferred.  
IAS 16
In an exchange transaction the cost of assets acquired should be measured at the fair value of the …

OTHER IFRS »

[28 Aug 2008 | No Comment | 2,096 views]

My client A acquired 66% of B from C, included in the contract was the clause that C can exchange the remaining shares in B with shares in A.
Is it an embedded derivative?
Do I only disclose this in accounts or should I calculate its fair value/Intrinsic as part of my acquisition calculations.
If I have to calculate the fair value do I use the normal Black Scholes etc?
Thanks
Aneel

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IFRS »

[28 Aug 2008 | No Comment | 5,618 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 | 3,334 views]

On the date of transition, a company could choose, as it´s deemed cost, historical cost if the previous gaap is not significantly different than IFRS or fair value for PPE, Intangibles and Investment property. I am not sure if I have it clear but under IAS 16, one can choose the deemed cost on a per-item basis on the date of transition.
Is the option at date of transition to use FV or historical cost on a per-item basis available for IAS 40 Investment Properties and IAS 38 Intangibles?
For measurement after recognition, all …

IFRS »

[28 Aug 2008 | No Comment | 4,020 views]

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 will reduce the future deprecistion??

Maybe there are revaluation surpluses under equity that can be transferred to the deficit while impairing the overvalued assets?
Kind regards,
Henk

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IFRS »

[28 Aug 2008 | No Comment | 3,642 views]

Hi,
 
Thanks for the information.
 
I would like to know, if we use cost model than also are we require to do the revaluation.
 
best regards
Suraj

Hi Suraj, 
Investment property is defined as property held (by the owner or lessee under a finance lease) to rentals and/or for capital appreciation, rather than for
   -use in the production or supply of goods and services for administrative purposes; or
   -sale in the ordinary course of business

IAS 40 covers investment property held by all enterprises and is not limited to enterprises whose main activies are in this area. Under IAS …

IFRS »

[28 Aug 2008 | No Comment | 3,580 views]

Hi all
For those companies who offer settlement discount, should we have an account to record the probable allowance for settlement discount or we should net it off against the revenue?
Thank you in advance.
Regards,

Nyasha Marauka

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