IAS 16

/Tag:IAS 16

Change in life of computer software IAS 16, IAS 8

Dear Experts, If useful life of computer software is revised from 5 years to 2 years, this would be a change in estimate as per IAS-8 and change will be prospectively. However, in practical example Cost $ 50000 as on 31-12-09 Accumulated Depreciation $ 30000 as on 31-12-09 NBV 20000 as on 31-12-09 If life [...]

By |May 5th, 2010|IAS 16, IAS 8|8 Comments

Accounting treatment of PPE in consolidated financial statement

How will you report the ppe in the consolidated balance sheet if some of the units use historical cost and some the market valuation? If there is no historical cost data available, could you use the market value? thnak you

By |March 9th, 2010|IAS 16|6 Comments

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

Capitalization of repairment expenses

Dear All, The company use a buillding under operation lease, company just pay lease payments to the owner of the building and there is no intention in the future to get any legal rights on this building. The repairement of the building was performed by the lessee company. According to IFRC, can the repairment expenses [...]

By |February 22nd, 2009|OTHER IFRS|6 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

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

Preliminery expenses

Dear All, The Company was incorporated in Oct 2007.Could you please give your expert opinion on the treatment of preliminary expenses (Revenue generation is not yet started) e.g. rent, salary, traveling etc. incurred during Oct 2007- Aug 2008. Please reply in reference to IFRS. Revenue is expected in Sept 2008. In my view, preliminary expenses [...]

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

Capitalization of WIP

Hello,   If a company asks a third party to construct a fixed asset and at the end of the year, the fixed asset is not complete, but you have a statement of the costs incurred, would you capitalize the costs incurred under Construction in Progress with counterpart in accruals. Or would you record an entry [...]

By |December 14th, 2008|IAS 2|1 Comment

Fixed assets evaluation ( if not official)

IF a company was operating under the name A with shareholders X and Y, in 2008 the shareholders sold 40% of the company to Mr, Z and they changed the name of the company to be B the company is Printing press so has significant Fixed assets Value. As per IFRS , it is acceptable [...]

By |August 28th, 2008|IAS 16|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

Fixed Asset Exchange Problem

Dear All    According to IAS 16, in an exchange transaction asset should be recorded at fair value.   My question is which assets fair value?   Asset given up     or Asset acquired    considering that we have the fair value of both.     Regards   […]

By |August 28th, 2008|OTHER IFRS|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

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

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

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

CAPITALISING EXPENSES

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 [...]

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