IAS 18

/Tag:IAS 18

Refund of earned income

How to treat the income which was earned and accounted in 2007, which is being partly refunded in 2009. The organisation had legal rights to the income and there was no error in accounting, so it is not a prior period item and there is no changes in the accounting policy.  The income is just [...]

By |December 10th, 2009|IAS 18|6 Comments

Question on Licenses and Franchises

Dear All, It is to request you all for reply of my question stated below: "Company A" grants license to "Company B" to sell its products in exchange of license fee to be paid to "Company A". All transactions of "Company B" will be reported to "Company A", i.e. "Company B" will be perform operations [...]

By |June 8th, 2009|OTHER IFRS|4 Comments

Unallocated revenues expenses

The company incured pre operational revenue expenses and after operation the company is runnig with profit and preoprational revenue expenses remain same without any adjustment. what will be the procedure to adjust the unallocated revenue expenses please give the reference of ifrs and accounting treatment and also give me information whether total amount of unallocated [...]

By |February 17th, 2009|IAS 18|1 Comment

Revenue recognition and provision

Dear All, Can any one give their opinion on the below: The organization is charging license cancellation fee for each customer's license cancellation. What if customer ran away without canceling license. Now the Organization wants to cancel on their own and charge license fee and recognize revenue and provide against doubtful debts. In my opinion [...]

By |December 15th, 2008|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

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

License revenue

Dear All,   The company has main stream of revenue from rental property. The annual rent is amortized monthly equally over 12 months period.  Besides rental, company issues license for one year. I want to know whether license revenue should be amortized monthly over 12 months or in a month in which it is paid. […]

By |August 28th, 2008|IAS 18|0 Comments