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IAS 38 »

[14 Feb 2010 | 4 Comments | 3,793 views]
IAS 38

A company have a computer software (internally generated) which results in buying the programmes to users
The main customer of this programmes has bankrupt
so the software will not be sold ,Is Impairment should be ?
and also  a few programmes may be sold
So what’s the right Treatment For this according to IFRS?

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IAS 38 »

[5 Dec 2009 | 3 Comments | 2,982 views]
Treatment of Windows Operating System License

Para 4 of IAS 38 says “computer
software for a computer-controlled machine tool that cannot operate without
that specific software is an integral part of the related hardware and it is treated
as property, plant and equipment. The same applies to the operating system of a
computer.”
Its true for branded computers which come pre installed with windows. But If we buy a non branded computer (without opereating system, ofcourse) and purchase windows seperately. Should I recognize the windows under IAS 38 or include in hardware’s cost (treat it under IAS 16).

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IAS 38 »

[11 Nov 2009 | 3 Comments | 6,334 views]

Dear IFRS Experts,
Could you please give your opinion on the following:
1. Computer softare is to be considered as Intangible Assets or PPE 2. Which type of computer software can be capitalized / expensed out
Whether following type can be capitalized or expensed out
Photoshop
Illustrator
Adobe Writer
AutoCAD
AutoCAD 3D Max
AutoCAd lite
Server Monitrong Software
Performance & Process Management Application Document Management System Data Cleansing HelpDesk System
IAS -38 states capitalization criteria •it is probable that the future economic benefits that are attributable to the asset will flow to the entity;
In that case a company in normal course of …

IAS 38 »

[21 Apr 2009 | 5 Comments | 4,257 views]

Dear Group member
Please advice, the rent which is paid for the advertiment, like display of bill boards etc., can we take it into intangible assets.
Is advertisment cost of our product an intangible assets
Best Regards
Suraj

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IAS 38 »

[9 Apr 2009 | One Comment | 8,578 views]

Leo wants to capitalize all costs of NSL on NSL’s books until it has completed its first year of operations.  In addition to the franchise fee, $20 million will have to be spent on the following: 
Acquisition of player contracts                                                               $ 12,000,000
Advertising and promotion                                                                         1,500,000
Equipment                                                                                                 3,200,000
Wages, benefits, and bonuses                                                                 6,800,000
Other operating costs                                                                                3,300,000
                                                                  26,800,000
Less 
Revenue – ticket sales                                                                        (6,000,000)
               – other                                                                                     (800,000)
 
                        $          20,000,000
What is the correct accounting under IFRS?
What costs can be capitalized?

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IAS 38 »

[23 Feb 2009 | 3 Comments | 6,100 views]

Dear expert
After my joining i obseved that substetial amount remin unadjusted as unallocated revenue expenditure. how could i adjust the unallocated expenses with my accounts . if there is any relation with IAS 38 intangible assets. please give the suggetion with example and related IFRS
Thanks

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IFRS »

[15 Dec 2008 | No Comment | 5,632 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 38 »

[15 Dec 2008 | No Comment | 5,217 views]

Dear All ,
can anyone help me with an urgent answer on the below question :
- If we purchase software licences for office programs like (
Microsoft , power point etc ). and we renew the same every year
do we need to capitalize this cost or expense it ( Please note that
i’m not talking about operation or accounting software’s ) I’m talking
about licences like Microsoft ( office software’s).
regards
Tony

Hi Tony,
General software costs should be expensed as they do not meet IAS 38
recognition criteria.
regards,
Aida

The cost of software license is an expense recognized in the …

IAS 38 »

[14 Dec 2008 | No Comment | 2,192 views]

Please let me know about cost of create new web sit
will it be general expenses or intangible assets 
So, which treatment prefered to be confirmed to international accounting standard
 
thank you
 
Mahmoud Gbr
Auditor

General expense: if there is no link to future cash inflow through this
 
Intangible asset: if satisfy the conditions of IAS 38 ..cash inflow, technical feasibility, intention, available market etc.
 
Thank you,
Regards,
Debdulal

Do you expect with relative certainty that the development of the new web will bring new cashflows to the company?

 
If yes-then it should be recognised as an asset
If not-it is an expense and should be …

IFRS »

[28 Aug 2008 | No Comment | 3,333 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 | 9,911 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 …