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 [...]
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
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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. […]
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 […]
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 [...]
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 [...]
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 […]
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 [...]
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 [...]