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IAS 2 »

[28 Feb 2009 | One Comment | 2,818 views]

Good luck For All,
Kindly Let me Know Is Any Indication of under/ over absorbed production overheads’ treatment in IFRSs. If yes Then What And In which one. If Not Then What Is The Proper treatment?
Regards
Naveed

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IFRS »

[15 Dec 2008 | No Comment | 3,429 views]

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 thanks for your help,
Sheetal

Hi Sheetal
Termination benefits are recognized only when the employer has
demonstrated its commitment to provide the benefits with a formal
detail plan for the dismissal of group of employees, when the employer
has contractually agreed to pay a termination benefit to …

IFRS »

[15 Dec 2008 | No Comment | 3,751 views]

Dear all
Can someone tell me how do you define normal capacity of IAS 2?
In IAS 2, it said that normal capacity is the production expected to
be achieved on average over a number of periods or seasons under
normal circumstances.
I am wondering how to caculate the normail capacity?
ex: one machine can produce 10 finish good in 8 hours, then, the
factory works 8 hours per days and five days per week, so the normal
capacity will be
10 *8*4=320 ?
or the enterprise estimate that they can sell 250 finish goods per
months in normal circumstances. so, …

IFRS »

[15 Dec 2008 | No Comment | 2,944 views]

Dear Every one,

Can any one help to solve the following problems:
   
Say, XY is a joint venture company between X & Y with 70:30 proportion with issued capital of  $100. Now, Y intends to offload its share to Z company for a consideration of $ 80.
Now the question is how this investment would be shown in Z company’s F/S and which IAS/IFRS will cover this transaction ?
 
Also can any one share reconciliation between IFRS and US GAAP F/S ?
 
Advance thanks to every one
 
 
MM

Hi there,

My answer would be the following:
Y has a …

AUDIT »

[15 Dec 2008 | One Comment | 2,651 views]

Dear all,

Can you share me the international auditing standard document. Thanks

Danella,I double checked after the comment below, and I agree with Hemant. IAS 21.28 explicitly states that gains/losses on forex should be recognized in P&L. The forex is not attributable to the asset but to the financial liability.http://www.ifac.org/IAASB/
My apologies for my earlier answer.
Regards,
Jeroen

 
 

http://www.ifac.org/Store/Category.tmpl?Category=Auditing%2C%20Assurance%20%26%20Related%20Services

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LOCAL GAAP vs IFRS »

[15 Dec 2008 | No Comment | 5,704 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 | 2,460 views]

Hi all,
A non-profit organisation based in Virginia, USA was donated part of
real estate’s value.Currently the real estate is being adminstered by
an agent.I would appreciate if any one could hint me what both IFRS
and USGAAP recommends for treating such transaction.
Thank you
Aklilu

Hi,
When you say value, I assume a cash donation was made to buy the
property. Is the property been transferred in the name of this
organization. If it has, this means that risks and rewards of
ownership have been trasferred.
I would assume, IAS 20, Grant accounting rules will need to be followed.
The amount of …

IFRS »

[14 Dec 2008 | No Comment | 2,419 views]

Under IAS 23 Borrowing Costs, we are required to capitalize borrowing costs directly attributable to qualifying assets. Qualifying assets are defined as those that necessarily take a “substantial period of time” to get ready for use.
Can anyone help with any rule of thumb or standard practices regarding how long a “substantial period of time” might be?
Thanks
Gord

HI Gord,
From the KPMG insights into IFRS, “substantial period of time” could be
recognized as over 6 months.
Best regards
Adil

Should it not be a period rolling over one financial year?


CMA.R

Ask mi answer in spanish.. i live in …

IAS 2 »

[28 Aug 2008 | No Comment | 3,364 views]

Hello all,
Our company is operating in aircraft maintenance, repair and overhaul (MRO) sector. Wages are paid to the direct&indirect blue collar employees on monthly basis, regardless of how much man/hour spent. But overtime is paid for the excess time charged.
Regarding the classification of wages paid to the blue collar as fixed and variable, what do you think the classification will be? Should we assume that these wages are related with the level of production, and totally assumed as variable, although the payment is fixed on monthly basis; or only the overtime paid is …

IAS 2 »

[28 Aug 2008 | No Comment | 4,211 views]

Can anyone help me to understand the IFRS – IAS 2 -
1. Inventory – wrtie-down and write-up of inventory cost??
2. IAS 2 – Does this apply to work-in-process??
Thanks for your assistance.
Ray

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IAS 2 »

[28 Aug 2008 | No Comment | 3,128 views]

Hi all,
Need your help on this. I am trying to look into my Inventory valuation in my Accounting system hence if you have any suggestions pls do reply me.
Currently we are using Navision system and if any of you are using the same system it will be good if I can hear your feedback because I am trying to get my vendor to do NRV valuation for my Inventory and they give me negative answers.
In addition we are using FIFO method but in the system it doesn’t calculate it this …

IAS 2, OTHER IFRS »

[28 Aug 2008 | No Comment | 1,795 views]

Dear All Recently our currency in Zimbabwe was re-denominated by 10 000 000 000 factor, prior to this we imported stocks and converted them at prevailing stipulated rates as at that period. After the re denomination we have stocks at 0 value. According to standards is it possible to re value stocks so that we will be able to reflect true inventory valuation and cost of sales.

I appreciate your assistance
 Regards
 
 

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IAS 2 »

[28 Aug 2008 | No Comment | 3,005 views]

Hi Antonello
I hope you can answer some of my questions related to IFRS – inventory write-down.
Case:
Inventory unit cost was $ 15.00 purchase price
Sales price for $35.00 per unit
Total unit at year-end – on hand quantity 1000 units
Forecast 100% stocks classified as non-salesable.
Reserve set up at the end of year was $ 15,000.00
Third party disposition for 1000 units – sales price drop to $10.00 per unit – $10,000.00
What is the accounting treatment for the above transaction under IFRS?
Your input is much appreciated.
Thanks,
Raymond

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IFRS »

[28 Aug 2008 | No Comment | 5,626 views]

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 December 2006.

These are my queries:

In view of the Holding company, how much is the equity take up considering the date of deemed sale?

In view of the holding company, how to compute for the gain/loss of the deemed …

IFRS »

[28 Aug 2008 | One Comment | 3,991 views]

As per the amended IAS 23, all borrowing costs on qualifying assets should be capitalised (no option to expense).
Does exchange differences on foreign currency loans qualify as borrowing costs to be capitalised?
Best regards
Allan

Hi Allan

To my understanding any positive/negative FX difference is expensed directly to the P&L.

Regards,
Marc

The change to IAS23 will come into force on Jan 2009. So far that is only allowed alternative, the benchmark tre
atment is to expense.
The exchange differences on foreign currency should be included to assets under construction and therefore capitalised. After capitalisation of qualifying asset any exchange …

IAS 2 »

[28 Aug 2008 | No Comment | 3,535 views]

Hi: Good morning: Henk:
Would you be kind to let me know the IFRS – IAS 2 concerning to ret realizable value and write-off: 1. How to handle the declined value of inventory stocks? 2. What is the correct procedure to write-down of damaged or obsolete items?
Thanks for your assistance.
Raymond

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IFRS »

[28 Aug 2008 | No Comment | 1,862 views]

Dear all,
 
Earlier i asked about IAS 20, “Government Grants” but i think i was not able to convey my querry properly. Let me ask the same again with an illustration:
 
Suppose an entity (A) which is owned by Government (B).
Another Government (C) provide a donation in kind (in the shape of assets).
Will this grant be accounted for under IAS-20?, or,
Whether the grant is excluded from the scope of IAS-20 (through exclusion paragraph)?
Please let me guide about treatment of this grant.
 
Thanks,
 
 
Sami

Yes a government grant is a government grant whether it is used …

IFRS »

[28 Aug 2008 | No Comment | 1,879 views]

Dear all,
 
I have a querry in IAS 20- Government Grants:
 

In the scope paragraph of the standard, those entities are excluded from the applicability of this standard which are owned by “Government”.

Q) My querry is that which government is refered in this paragraph?
        a) That Government which has provided grant to the reporting entity?
        b) Any government?
 
The confusion arises as in case the grant is given by the same government which also owns that entity, this standard do not apply to that standard altogether. As the owners contribution, in any form …

IFRS »

[28 Aug 2008 | No Comment | 10,095 views]

Hello,
Does anyone know where the best place to find
information on capitalizing internal software
development under IFRS?  Any links?  Which IAS/IFRS
standard is this covered under?
Thanks in advance for the help!

You raise an interest topic David,  I would like to see the view of others

In the meantime page 56 of the differences between IFRS and US GAAP might help you as in the latter some software deveopment costs can be capitalised which would imply that under IFRS they are not but let us see what the others say

I am sending this to you …

IFRS »

[28 Aug 2008 | No Comment | 4,366 views]

Hi All
This is Muhammad Naveed
I have a query regarding the consolidation of subsidiaries. Does IAS-27 allow us to not consolidate subsidiaries which are immaterial for the group?
Is it specifically mentioned somewhere in IAS?
 
Regards
Muhammad

Well Naveed
Actually materiality is an underlying concept of the Financial Statements.So anything which is immaterial needs not to be disclosed or adjusted.
 
Thanks and regards

IAS 1 is the overall standard to refer to:

Materiality and Aggregation
29.        Each material class of similar items shall be presented separately in the financial statements.  Items of a dissimilar nature or function shall be presented separately unless …