FAIR VALUE

/Tag:FAIR VALUE

Fair value as deemed cost for property

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 [...]

By |January 23rd, 2010|IAS 16, IFRS 1|5 Comments

Live web presentation introducing the exposure draft on Fair Value Measurement – 30 June 2009

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 [...]

By |June 20th, 2009|EVENTS, FAIR VALUE|1 Comment

Accounting treatment for Increase in Equity-share Mkt. Price at FY- Closing.

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 [...]

By |February 18th, 2009|OTHER IFRS|8 Comments

Termination provisions

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 [...]

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

Exceptional Items vs. Extraordinary Items

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 [...]

By |December 15th, 2008|IFRS|3 Comments

Where can I find pdf copy of US GAAP and US GAAP APB?

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 [...]

By |December 15th, 2008|LOCAL GAAP vs IFRS|0 Comments

Shares

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? [...]

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

Hedging activities

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

By |December 15th, 2008|FAIR VALUE|0 Comments

Loan Impairment

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 [...]

By |December 14th, 2008|IFRS|0 Comments

Fair value model for PPE

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 [...]

By |August 28th, 2008|FAIR VALUE|0 Comments

Exchange transaction

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 items given up. {Assuming that we can measure the fair value of items given up and the transaction does not lack commercial substance}.  Suppose the fair value of the items given up {the construction services rendered} amounts to $100 and the fair value of the asset received amounts to $150. What are the entries that we will post in the ledger to recognise the revenue and the asset aquired.   Many thanks for the assistance.   Regards,   […]

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

Options

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 […]

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

Deemed sale of subsidiary

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 [...]

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

IAS 16/40 on date of transition

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 [...]

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

Revaluation of investment property

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 [...]

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

Allowance for settlement discount.

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 […]

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