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Articles tagged with: IAS 16

IAS 16, IAS 8 »

[5 May 2010 | 8 Comments | 3,740 views]

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 is revised from 1-1-10 from 5 years to 3 years then
NBV 20000 would be amortized over 2 years from 1-1-10.
but what if some softwares have already finished their original life after 3 years, what would be effect.
HB

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IAS 16 »

[9 Mar 2010 | 6 Comments | 5,003 views]

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

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IAS 16, IFRS 1 »

[23 Jan 2010 | 5 Comments | 4,691 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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OTHER IFRS »

[22 Feb 2009 | 6 Comments | 21,805 views]

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 treated as Property, Plant and Equipmrnt or intangible assets and be capitalized respectively? thank you
Salome

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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 …

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 | 5,652 views]

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 can be accumulated and amortized when
revenue is started due to matching concept.
BestRegards,
Hemant

Preliminary expenses / startup costs, etc. cannot be deferred. They
have to be charged off to income statement in the year of actual
startup of operations.

Thanks & Regards
Anand

Hemant,
Whether to Deffer the preliminary …

IAS 2 »

[14 Dec 2008 | One Comment | 8,346 views]

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 only when it has been delivered to the company?
 
What IFRS would be applicable?
 
Thanks,
Isabelle

 

IFRS 16 would be applicable “Plant , Property and Equipemnt”
 
Recognisation -
Items of property, plant, and equipment should be recognised as assets when it is probable …

IAS 16 »

[28 Aug 2008 | No Comment | 2,698 views]

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 that the new company B , Book on the new TB the value of Fixed assets Cost , as the net book value on the acquisition date , IF the machines were not evaluates by …

IFRS »

[28 Aug 2008 | No Comment | 2,037 views]

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.

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OTHER IFRS »

[28 Aug 2008 | No Comment | 2,826 views]

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
 

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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 …

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 | 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 | 3,583 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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IFRS »

[28 Aug 2008 | No Comment | 4,582 views]

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 for revaluation increases and decreases only, see IAS 16 PPE sub 39 – 41, only when assets are sold, the whole surplus will be realized in the income statement or when depreciated, that part may be released to …

IFRS »

[27 Aug 2008 | No Comment | 3,461 views]

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 16.
Secondly before we begin any project we are supposed to remit 0.1% of the project cost as a government requirements to Environmental authority . Should such expenses be capitalized as per IAS 16 para 11