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 is revised from 1-1-10 from 5 years to 3 years then
NBV 20000 would be amortized over 2 years from 1-1-10.
but what if some softwares have already finished their original life after 3 years, what would be effect.
HB

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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 being refunded this year to keep the good faith and relations of certain parties.
Appreciate comments on the same.

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Dear Experts,
Please give your opinion on the following on IAS-8
An expense provision was taken twice, Whether IAS 8 will apply and need restatement of previous year or to be considered as liability w/back and take it to income.
An estimate of an expense was taken on adhoc and that was in excess of what paid in subsequent year, Whether IAS-8 will apply and restatement is required or to be considered as liability w/back and take it to income.
Thanks,
Hemant

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Dear all, kindly advice if the Suggested treatment of fraud,error e.t.c discovered which result in overstatement of cash book balance is correct:
Scenario
During preparation of bank reconciliation the cash book balance is discovered to be more by say $550,000.the accountant then decides to transfer this amount to debtors saying that this where it came from which ofcourse is not the right way of treating irregularity.
Suggested correcting entries
Dr cash and bank $550,000
Cr Debtors $550,000
Being correction of fraud, errors etc wrongly taken to debtors.
Dr Equity (There are no reserves) …

Dear all,
As I know , as per IFRS there is no prior year adjustment anymore ,
and back dated entries are not allowed once the year closed and
figures reported , Hence the actual variance will be booked in the
next year PL ,
example : if company A , estimated an income in 2007 and took a
provision for this income for 1M $ in 2007
The actual income received in 2008 for 2M$ , the
accounting entry will be reversing the 1M$ provision and Book the 1M$
variance in 2008 PL
My question is , As per …