IAS 2

/Tag:IAS 2

Treatment of under/over absorbed overheads

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

By |February 28th, 2009|IAS 2|1 Comment

Termination provisions

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 [...]

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

About normal capacity

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 [...]

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

Investment decision

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 [...]

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

Request for auditing standard

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 [...]

By |December 15th, 2008|AUDIT|1 Comment

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

PLEASE GIVE ME AN IDEA HOW TO TREAT?

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 [...]

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

Borrowing Costs

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" [...]

By |December 14th, 2008|IFRS|0 Comments

Fixed vs Variable Wage Expense

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 [...]

By |August 28th, 2008|IAS 2|0 Comments

IAS 2 Inventories

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 […]

By |August 28th, 2008|IAS 2|0 Comments

NRV

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 way. But my vendor tells me this is the way it is. Any good websites which can help will be helpful Regards, Sylvia   […]

By |August 28th, 2008|IAS 2|0 Comments

Valuation of Inventory according to re – denominated currency

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     […]

By |August 28th, 2008|IAS 2, OTHER IFRS|0 Comments

Inventory Write-Down

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 […]

By |August 28th, 2008|IAS 2|0 Comments

Deemed sale of subsidiary

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 [...]

By |August 28th, 2008|IFRS|0 Comments

IAS 23 Borrowing costs – Forex diffrences

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 [...]

By |August 28th, 2008|IFRS|1 Comment

IAS 2 INVENTORIES – NET REALIZABLE VALUE AND WRITE-OFF

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 […]

By |August 28th, 2008|IAS 2|0 Comments

IAS 20

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 [...]

By |August 28th, 2008|IFRS|0 Comments

IAS 20- Government Grants

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 [...]

By |August 28th, 2008|IFRS|0 Comments

Software capitalization

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 [...]

By |August 28th, 2008|IFRS|0 Comments

IAS-27 query

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 [...]

By |August 28th, 2008|IFRS|0 Comments