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[21 Jun 2011 | No Comment | 2,302 views]
IFRS Implementation-cum-Global Qualification on 3rd July 2011 in New Delhi

For finance and accounts professionals looking for an effective training on IFRS with special focus to India implementation.


[15 Dec 2008 | No Comment | 2,673 views]

To all,
Can any one clarify whether it is necessary for provision for
commission to agents to be made for the premiums not yet received, at
the end of every month.

For any provision, I think you’d first need to look at IAS 37 paragraph 14.
Is there a present obligation as a result of a past event?
Is it probable that there will be an outflow of resources to settle
the obligation?
Can the amount be reasonably estimated?
Whether or not the premiums have been received is not relevant.

If you recognise an income in the Profit & Loss …


[15 Dec 2008 | No Comment | 3,422 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,

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 …


[15 Dec 2008 | No Comment | 3,742 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, …


[15 Dec 2008 | No Comment | 3,269 views]

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 no need of license cancellation charged
to customer.
Best Regards,

Hi Hemant,The revenue should not be recognized because it is NOT probable that
the economic benefits associated with the transaction will flow to the
entity.License cancellation fee should be classified as a service type
revenue, governed under …


[15 Dec 2008 | No Comment | 2,940 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

Hi there,

My answer would be the following:
Y has a …


[15 Dec 2008 | No Comment | 3,466 views]

dear sir or mam
When one company adopt the IFRSs 1 first time then what are the irems exempted from national GAAP in the case of convergance to IFRSs.
Sincerely yours,

dear rakesh

pls read ifrs 1 and see the exemption given for the same
there are 10 exemptions


We have a projector & purchased 6 years back @ 17000/- we have depreciated 8000/- as of now and the NBV is 9000/-. Now the market value is 5000/-. Do we need any accouning treatment as per IFRS.

Dear Upul,
IAS 16, Property, Plant and Equipment (PPE), allows a choice …


[15 Dec 2008 | No Comment | 1,648 views]

Dear allPlease find attached a news from European Commission about IFRS.
In addition you’ll find a link to a pdf file related to consolidated
text of IFRS.Have a good joining.
Simone SalviAccounting standards: Commission adopts consolidated text of IFRS
applicable in the EUThe European Commission has adopted on Monday 3 November the
consolidated text of all International Financial Reporting Standards
(IFRS) in force in the European Union (EU). The consolidated version
puts together all IFRS endorsed to date, including the latest
amendments endorsed on 15.10.2008. It will enable stakeholders to
refer to only one single legal document. This is …


[15 Dec 2008 | No Comment | 4,818 views]

The Company has taken a loan for construction of projects. A part of
amount is kept in FD with the Bank. Interest is capitalized on the
amount paid as per payment certificates like draw down. If the project
is capitalized and 2 payment certificates received after the
capitalization date. Now question is whether interest will be
capitalized on amount paid after capitalization date or expensed out.

I think after the project is completed, the interest expenses, is charged to

Query is not clear:

1. If the loan was taken for construction, interest component to the date of capitalization …


[15 Dec 2008 | One Comment | 2,645 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.



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[15 Dec 2008 | No Comment | 4,244 views]

Dear all,
An answer to the following question would be much appreciated:
If no hedge accounting is applied, should all changes in fair value of derivatives be recognized as financial income or expense (so below operating result) or is recording of the change in fair value within operating result allowed?
Further, does anyone have one clear memo, including example journal entries of the various possble accounting issues (cf hedge, fv hedge net investment in foreign operation) applying hedge accounting and not-applying hedge accounting and if possible, all other accounting (including journal entries) not applying …


[15 Dec 2008 | One Comment | 4,488 views]

Can anyone respond to my email below?
Thanks and regards
I would need your assistance on how to account for futures/options in the financial statements.
Thanking you in advance for your kind assistance.

Have you looked at IAS39 already, because depending on that you can or cannot apply hedge accounting. Basically you have 2 methods either Cashflow hedging or fair value hedging. If you want to do hedge accounting you will be required to do a lot of prospective and retrospective testing to prove the effectiveness of your hedges. If you don’t do hedge …


[15 Dec 2008 | No Comment | 13,555 views]

Can any one help me for calculation of deferred tax under deductable timing diference
Example: writeen down value of fixed assets as pert accounts-200
         writeen down value as per tax                      150
please privide the soluision by giving effects in the profit and loos accounts and balance sheet. The company going to introduce deferred tax in first time

Here is the solution::
U need to calculate PGBP in following manner taking into consideration timing differences :
PBT as per P & L a/c …


[15 Dec 2008 | No Comment | 6,733 views]

Hi All,
Accounting of lease rentals for operating lease in lessee’s book is
ruled in IAS as under :
“Lease payments under an operating lease shall be recognised as an
expense on a straight-line basis over the lease term unless another
systematic basis is more representative of the time pattern of the
user’s benefit.”
My query is that when there is an escalation clause in the contract
how should the accrual be made over the total tenor of the lease; for
eg: refer following table, should the accrual be made as per option 1
or option 2.
Thanks to reply asap.

Option …


[15 Dec 2008 | No Comment | 5,948 views]

Would you please explain me what is the difference between affiliates
and subsidaries, and then if there is any difference in accounting
treatments.( i am asking these question w.r.t an investment co.)
2nd thing is how i will treat the personal expenses of a partner which
are being paid by the co. and where i have to show it in the balance

Dear Hameed
The shares of subsidiary company should be owned by holding company
but for affiliates, the relationship is a connected party.
Thanks and regards

Dear Simon
Thanx for your reply, dear would you please explian me more, …


[15 Dec 2008 | No Comment | 2,063 views]

Dear all

My Company has an outstanding USD loan of say US$10m and as our main subsidiaries are operating in China and earns revenue denominated in RMB, which will ultimately flow to our company in terms of RMB dividend (converted to USD due to exchange regulation in PRC).
As we need to make periodic payments say US$1m every quarter, we are considering entering forex contracts to fix the USD/RMB rate that matches the payments (i.e. 10 contracts @US$1m each @ either same conversion price or different conversion price).
How should we disclose …


[15 Dec 2008 | No Comment | 2,443 views]

Dear all,

Is it possible to reclassify asset held for sale back to PPE?

the guidances in this case are explianed in IFRS5.26 to IFRS5.29
Best regards,

Dear DivineIt is possible to reclassify an asset held for sale back to PPE if the criteria for classification are no longer met or if there is a change in plan for sale. The asset would need to be remeasured. Please refer to paragraphs 26 to 29 and 42 of IFRS 5 for more details on measurement and disclosure.

DEAR grace,
yes it is possible  but in that case …


[15 Dec 2008 | 3 Comments | 33,353 views]

Any one please clarify me this….

Hi Team,
Will any one clarify the difference between Exceptional Items &
Extraordinary Items?
With reference to IFRS what is the disclosure policy for the both.
Thanks & Regards,

Hi Hari,
to my understanding according to IAS 1 there was for several years the
possibility to show extraordinary items in the P+L (IAS 1.85). Since
2004 this seems to be no longer allowed according to Dr. David
Grünberger who is member in the Accounting Regulatory Committee in
Brussels which decides upon the endorsement of new IAS/IFRS standards
within the EU. According to US-GAAP extraordinary items are …


[15 Dec 2008 | No Comment | 5,685 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 …


[15 Dec 2008 | No Comment | 4,730 views]

Apologies for an off-top, – would anybody be able to provide me with thelink to ASBEs (Chinese Accounting Standards) in English?
I know that they are very close to IFRS, I have the Delloitepublication, just needed to see actual standards or at least a detailedand comprehensive summary.
Thanks and have a great day/ evening.

Hi Tatiana,
have a look at:
for a start – I remember there are also other ressources besidesDeloitte, but don’t find them right now …
I attach another document, probably the one you …