You can download all the related documents

- Standards
- Basis of Conclusions
- Illustrative Financial Statements Presentation and Disclosure Checklist

here (you need to register at IASB website):

http://www.iasb.org/IFRS+for+SMEs/IFRS+for+SMEs+and+related+material/IFRS+for+SMEs+and+related+material.htm

In addition you can purchase a printed copy of IFRS for SMEs here:

http://eifrs.iasb.org/eifrs/RegisterMyInterest

Have a good joining

Kind Regards

Simone Salvi

Related posts:

1. IFRS for SMEs – Free training material by IASC Foundation The IASC Foundation is developing 35 stand-alone training modules –...

Related posts brought to you by Yet Another Related Posts Plugin.

can anyone please guide me if there are any guidelines as to establish
date of commercial production in a manufacturing concern in IFRS.

thanks and regards

deepak

Hi Deepak,

I assume you are inferring to either intangible assets.

There is no specific guidance as to this date.

However, it is not unusual to assume the date of commercial production
to be the date (month) in which the first commercial orders are
processed in relation to the intangible.

Hi Alan

My query is regarding trial run expenditures in a manufactuing
concern. Till when can the trial run expenditures be capitalised in a
manufacturing concern. Are there any specific guidelines for same
under ifrs ?

deepak

Hi Deepak,The operative term used under IAS 16 is “capable of operating in the
manner intended by management”.Under cost recognition IAS 16 states the following:16 The cost of an item of property, plant and equipment comprises:(a) its purchase price, including import duties and
non-refundable purchase taxes, after deducting trade discounts and
rebates.(b) any costs directly attributable to bringing the asset to
the location and condition necessary for it to be capable of operating
in the manner intended by management.(c) the initial estimate of the costs of dismantling and
removing the item and restoring the site on which it is located, the
obligation for which an entity incurs either when the item is acquired
or as a consequence of having used the item during a particular period
for purposes other than to produce inventories during that period.17 Examples of directly attributable costs are:(a) costs of employee benefits (as defined in IAS 19 Employee
Benefits) arising directly from the construction or acquisition of the
item of property, plant and equipment;(b) costs of site preparation;(c) initial delivery and handling costs;(d) installation and assembly costs;(e) costs of testing whether the asset is functioning
properly, after deducting the net proceeds from selling any items
produced while bringing the asset to that location and condition (such
as samples produced when testing equipment); and(f) professional fees.20 Recognition of costs in the carrying amount of an item of
property, plant and equipment ceases when the item is in the location
and condition necessary for it to be capable of operating in the
manner intended by management. Therefore, costs incurred in using or
redeploying an item are not included in the carrying amount of that
item. For example, the following costs are not included in the
carrying amount of an item of property, plant and equipment:(a) costs incurred while an item capable of operating in the
manner intended by management has yet to be brought into use or is
operated at less than full capacity;(b) initial operating losses, such as those incurred while
demand for the item’s output builds up; and(c) costs of relocating or reorganising part or all of an
entity’s operations.There is no strict definition, but a guidance per se. So, justify your
insistence on capitalization by documenting how it fits under para 16
and 17, and not para 20.Usually, if your IQA department says that the machine is good to go,
that’s when you cease capitalizing costs into the machine and begin
depreciation.Also note that trial runs should refer to testing on the P&M and not
product trial runs, which do not qualify for capitalization under IAS
16, but may qualify under IAS 38 as development cost.Neither are customer qualification expenses since the P&M should
theoretically be “capable of operating in the manner intended by
management” before you accept a project (unless you are mad).Regards,Alan

Related posts:

1. Fair value as deemed cost for property Hello to all IFRS expert, Our company elects to use...
2. Fixed Asset Capilization Dear all Seasons greetings!! We have purchased a fixed asset...
3. Treatment of Windows Operating System License Para 4 of IAS 38 says “computer software for a...

Related posts brought to you by Yet Another Related Posts Plugin.

Related posts:

1. IFRS 1 (restructured in 2008) and IFRIC 17 adopted by UE The Commission of European Communities has adopted: - IFRS 1...
2. The comparability of IFRS financial statements Dear Sir/Madam, As part of my PhD in Applied Economic...

Related posts brought to you by Yet Another Related Posts Plugin.

Related posts:

1. Non Profit Agency and Auditing Can a funding agency enter into a bilateral contract with...

Related posts brought to you by Yet Another Related Posts Plugin.

Hari

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,

Hari

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 to be
shown in the P+L if they are unusual and infrequent items. Exceptional
items seem to be only infrequent, i.e. non-recurring, but not unusual:

“Exceptional items

Exceptional items relate to material non-recurring items of

income and expense arising from circumstances such as:

- write-downs of inventories to net realizable value or of

property, plant and equipment to recoverable amount, as well

as reversals of such write-downs;

- restructurings of the activities of an entity;

- releases of provisions;

- disposals of property, plant and equipment;

- disposals of associates or other financial assets;

- discontinued operations;

- onerous contracts;

- litigation settlements.

To provide a better understanding of the underlying results of the

period, exceptional items are reported separately if the

aggregate amount of the specific event or project exceeds

€10 million.”

Source: http://www.dsm.com/en_US/downloads/invest/annual_report_2007_en.pdf

Please do not hesitate to ask if you have any questions.

Have a good day and I look forward to hearing from you!

Mit freundlichen Grüssen/ With kind regards

Interim Solutions

Oliver

Hi,

Can someone advise us on tow different models for calculating share
based mode and which one is most generally used and why.

Best regards

Vikas

Vikas,

Can you please clarify further as to what you are looking for?

Zeeshan

Hi,

You are correct in your understanding that the concept of
extraordinary items has been removed from IAS from 2005. It has been
defined as any item resulting from an activity that is not ordinary
activity of the company concerned.

This does not however mean that exceptional items cannot be disclosed
separately.

IAS 1, Para 86, says that an entity can amend the statement of
comprehensive income and include more line items to give a better
understanding of the figures disclosed. However, materiality, nature
and function of the items of income and expense should be used as
guiding factor when deciding upon adding new line items.

The relevant para of IAS 1 are 86 and 87 and copied here;

86. When items of income and expense are material, their nature and
amount shall be disclosed separately.

87. Circumstances that would give rise to the separate disclosure of
items of income and expense include:

(a) write-downs of inventories to net realisable value or of property,
plant and equipment to recoverable amount, as well as reversals of
such write-downs;

(b) restructurings of the activities of an entity and reversals of any
provisions for the costs of restructuring;

(c) disposals of items of property, plant and equipment;

(d) disposals of investments;

(e) discontinued operations;

(f) litigation settlements; and

(g) other reversals of provisions.

In simple terms, the term extra ordinary items is no more relevant any
more. If other terms are used which are not already defined in IAS,
such items should also be defined in the financial statements. As an
example, attached are the 2006 accounts of Liberty International Plc
in which exceptional items has been defined as follows;

Exceptional items

Exceptional items are those significant items

which are separately disclosed by virtue of their

size or incidence to enable a full understanding

of the group’s financial performance. Transactions

which may give rise to exceptional items are

principally gains or losses on disposal of

investments, subsidiaries and early termination

of debt instruments

Regards,

Zeeshan

Hi Zeeshan,

I am interested in knowing, which are the two model used in
calculating stock based payment and which is the preferred way in the
service/ITes industry and why.

Hi Vikas, hi Zeeshan,

You can find those informations in IFRS 2 and IAS 32. In general there
is a vesting period when the specific employee has to work for the
specific company. After this vesting period is over, on the vesting
date, those stocks can be granted to this specific employee on the
grant date. Normally the fair value of the stocks on the grant date
has to be spread systematically throughout the vesting period and be
expensed. Which plan for the stock based payment do you have? Did you
already prepare an excel model for the excel spreadsheet you want to
calculate with?

Cheers

Oliver

Hi Oliver,

One related question, suppose I have granted a stock with a price of
US$4.80 per share, now suppose valuation as on grant date is US$4.50,
so where should company book this differential- as an Income?

Further if valuation on grant date is US$4.8 ( at par) then what
would be the accouting treatment? Is it possible for you send me the
text for these two standards.

Regards

Vikas

hi,As per IAS 1 (revised) and IAS -8 extra ordinary items are no longer
required to be reported separately . i.e these items no longer exist.AS PER IFRS-2 share based payments which are in nature of “equity
settled transaction” ,which is your case , the transaction is to be
recorded at “fair value on GRANT date ONLY ,and these are not
required to be re measured, ” which is $ 4.5 in your case so the
question of recognizing income does not arise at all .SHARE BASED PAYMENTS ARE exclusively dealt with by IFRS-2 . this has
been clarified by inserting explanations in IAS 19 so now IAS 19 is
not applicable on share based payment also IAS 32/39 and IFRS 3
exclusively provides that IAS 32/39 is not applicable to share based
payment meaning there by these are not to be treated as liability
under IAS 32/29/regards,rohit mansukhani(ACCA)

Related posts:

1. Fair value as deemed cost for property Hello to all IFRS expert, Our company elects to use...

Related posts brought to you by Yet Another Related Posts Plugin.

Please inform which website can give me detailed IFRS and IAS access
free of cost. Deloittee IAS PLUS gives summary.

Thanks

Hemant

Hi Hemant

For a summary of the scope of each Standard you may want to rely on
the official site of the International Accounting Standard Board
(www.iasb.org). Detailed information on each standard are instead
subject to a subscription which however provides you also with regular
updates.

Regards

Antonello

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

- 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 income
statement for the period it does cover. If for example starts in April
and lasts for 1 year, it is recognized for 9/12 as expense in profit
or loss. A. Dessanti

The said cost has to be capitalize as per International Accountiong Standard 38.

Dear Tony

The licensing cost is valid for one year and hence it needs to be
expensed out within a year.

Regards

Ashish

It will all depend on your capitalisation threshold limit i.e. there
are companies which say above 5.000 USD do capitalise licenses but not
personal computers which I think is bizarre

My personal take: I would only capitalise them if they are part of a
major software purchase in other words if all those renewals you are
talking about involve purchase of say Microsoft Vista for say 3 line
functions then I would capitalise them BUT as I said above I have seen
bizarre things

Nothing suprises me

Hi Tony,

Only costs which gives you benefit over the period of years can be
capitalized as license needs to be renewed each year so no
capitalization is required just treat it as an expense.

Hopy the answer of the question.

Thanks

Hi Tony

I think when you renew the licenses every year , you need to expense this cost.

Regards

Software licenses are cost and must not be capitalized, because these
are not cost associated with the development of a software, hence
these a cost incurred in a particular operating period

I think there are two points to consider here;

1 One is what is the minimum amount to be capitalized as an asset as
per the company policy;

2 If the amounts are more than the min threshold, i think these can
be capitalized under IAS 38 and amortized till the license expires.

Regards,

Zeeshan

Right Zeeshan ! which is what I said right up frontNow let me expand
upon my nothing surprises me with a 2006 IFRS example

I had this situation in 2006 when that company moved from US GAAP to
IFRS in a NYSE listed company, the capitalisation limit was 1.000 USD
but there were people capitalising everything in accordance with local
GAAP tax rules

We switched to IFRS and as write offs did not want to be made the CFO
re-invented the rule i.e. let us not capitalise below the tax level
now that we are in IFRS …just to find out that the level diferred
substantially in Italy to France, Switzerland, Austria…even recently
Germany has allowed capitalising assets below 400 Euros. Why ? Because
the tax authorities hate IFRS

Bottom line:

1. Capitalisation limit is the key and as I said above even in US GAAP
I have had situations where corporate policies required software
licences above 5k to be capitalised but not PCs no matter how many you
bought

2. The second key concept is that software is only capitalisable if
part of a major project (if such a capitalisation limit does not exist
in the first place)

sorry to hop in. . .

dear Jorge & zeshan,

plz let me confirm that can we proceed against the industry practice
or other prevailing GAAPs, if yes then it must be justifiable on sound
grounds obviously. . . & if the threshold limit is as low as 1.00 USD,
then i think we must analyze the definition of asset too. . . said
licence has age of not more than 12 year. . .

Dear Gorge, let me come to know, is its materiality of such
significant nature that if we dont pay renewel fee we ll be reluctant
to use the microsoft?? justifiable thing is that, if it is necessary
to continue with the main cover then we will have to capitalize it
upto its age. . .

your valued arguments will be appreciated. . .

Thanx & b/regards,
ammad

AmmadTo simplify things for you: My first experience in a publicly traded
company was UK GAAP in 1994 and our policy was clear: never ever
capitalise software unless it is part of a major IT project. Yet we
had issues country per country. As years went by in other companies
the “solution” was the capitalisation rule.To expand upon1. Who has talked about proceeding against industry practice or prevailing GAAP?2. Who has put a threshold of just 1 USD ?3. All the answers were fine in as much expensing the licenses is the
most logical solution (see my simplification above)4. My point from the beginning was the capitalisation limit and upon
seeing Zeeshan’s answer I simply added a few examples. That was all.5. With regards to your latest comment if you rephrased it I could try
to help you. If what you are saying is that the licenses are part of
a major IT project (which you define “as major cover”) then it does
fall into one of the initial comments I made: if they are part of a
major IT project they can be capitalised

Related posts:

1. Accounting issues in marine industry? Can someone please share thoughts around generic accounting issues in...
2. Software Capitalization / Expensed out Dear IFRS Experts, Could you please give your opinion on...
3. Treatment of Windows Operating System License Para 4 of IAS 38 says “computer software for a...

Related posts brought to you by Yet Another Related Posts Plugin.

Dear Justin,

ACCA is a British qualification mostly recognisted by European based
mutlinational corporations, British in particular. Please also consider
CIMA which is also Brtish qualification with more focus on management
accounting (controlling). With both qualifications you can take IFRS
path.

Please visit www.accaglobal.com or www.cimaglobal.com respecitvely
for details.

Regards,
Jakub

Hello David,
ACCA is an international Body. With the ongoing effort to
internationalize accounting stardards, I would suggest that you join
international bodies like the ACCA. For more details visit there website
www.accaglobal.com of email: infor@accaglobal.com

Benaya

Dear David Cook

If you have CPA in USA, there is no need to have ACCA, since AICPA and
ACCA are professional accountancy body in the market.

Thanks and regards

Simon

Hi David,

ACCA is the world’s largest accountancy body, started over 100 years
ago and with over 100,000 members I believe (including myself). You
need to take a number of exams in order to join which maybe not
justifiable given that you are CPA already. I recommend taking ACCA’s
Diploma in IFRS, which is one exam aimed to bring you on board with
IFRS.

Regards,
Aida

David / Simon,

Even if you are a CPA in the US, it would be worthwhile to take
atleast Certification if you want to get ahead in IFRS. Although,
AICPA has not come out with any training material but they do mention
that CPAs in the US would eventually have to prepare themselves. Below
is an extract from their website -

“For the CPA profession, the use of IFRS by U.S. publicly held
companies will create the need for effective training and education.
Companies will use IFRS only if they and their auditors have been
thoroughly trained, and if their investors and other users of their
financial statements — such as analysts and rating agencies —
understand IFRS as well. At the moment, most accountants in the
United States are trained in U.S. GAAP, not IFRS. Most specialists,
such as actuaries and valuation experts, who are engaged by management
to assist in measuring certain assets and liabilities also are not
taught IFRS. Consequently, all parties will need to undertake
comprehensive training. Professional associations and industry groups
will need to integrate IFRS into their training materials,
publications, testing and certification programs. Colleges and
universities will need to include IFRS in their curricula. If IFRS is
accepted—and many think this is
inevitable—as GAAP in the United States, it will be included in the
Uniform CPA Examination.

The bottom line is that CPAs need to begin to prepare for the day in
the not-so-distant future when the SEC could designate a date for
voluntary, or even mandatory, adoption of IFRS by all U.S. public
companies.”

I hope the above information would be beneficial for all CPAs in the US.

Thanks
Puneet

hi,
i think u should visit the ACCA website n go to the students
section…therein u can look into the exemptions that u get for ACCA
papers as a qualified CPA…
given that u r a member of IMA n AICPA u would need to sit 4 only a
few papers in order to become a member of ACCA…
try it
just adds on to ur profile…

2007 data relating to the body is as follows:

Number of students : 325,606
Number of members : 122,426

u may also find a few articles related to the ACCA n AICPA joint
venture prog which is in the pipeline…

cheers !!!

raj.

Dear Puneet

I am a fellow member of ACCA, assoicate member of ICAEW, I view one
professional qualification is sufficient however if you wish to have
ACCA title, this is only a label.

Thanks and regards

Simon

I agree with Aida. Dip IFRS would be the required examination
administered by ACCA every June and December for CPAs in US.
Certification in IFRS also administered by ACCA would give you an
immediate lead into IFRS. Professionals who do not want to venture
into IFRS immediately would do good if they register and give the
DipIFRS.

Thanks
Puneet

Adding to the comments on IFRS courses/certification – I understand the US
AICPA’s are/have recently added IFRS courses to USGAAP courses that they
have available. Just to clarify, I do not mean a ‘IFRS’ CPA qualification
in itself, but IFRS modules for those already qualified as CPAs. I suggest
you look at their website to get the exact details.

In relation to ACCA, my understanding is that they offer a qualification
that provides international recognition and, without any intention of
minimising the qualification, I believe this has been particularly
beneficial for accountants in countries who do not have a well developed CPA
or Chartered Accountant qualifications/programmes, (or other accounting
qualifications where they perhaps currently do not have reciprocity with say
US AICPA, Australia/Wales ICCA etc)

regards

Hi all,

Thanks for all the information on these courses. I have joined a
mutinational bank couple of years back handling the IFRS reporting. I
have working knowledge in IFRS but have not been very confident in
this subject as I have not gone through any course (though i have
attended various training).

I have browsed through the ACCA site and their courses in IFRS. I
just need a few clarifications if someone can provide me.

1. I am CA from India, so is it advisable and beneficial for me to
take one of these courses in IFRS?
2. Which one is more beneficiary, ACCA or ICAEW. (Also which one is
more cost effective)?
3. ACCA provides diploma (written exam) as well as certificate (online
exam) in IFRS, which one is more recognised and comprehensive?
4. The terms of ACCA Diploma are that with initial registration fee
one can give exams at the first or second available exam session
following registration. So if i join before 15th Oct (which is the
latest date for regn for Dec 08 exam), then can I sit for Jun 09 exam
at my option or do i have to compulsorily sit for Dec 08 exam.
5. The study materials costs GBP 275 for paper version (including
postage) and GBP 200 for electronic, which one is better?

Thanks,
Deepak

Hi All,

Both are unique in their own respect. Certification gives you an
instant marketability.
Thanks
Puneet

dear puneet … thanks

but from job market point of view do both have same creditabilty?

thanks
deepak

Hi everybody,
I also found this institution offering Diploma in IFRS. Does anybody
know how relevant it is and what’s the relationship with the
ACCAglobal?
http://www.ifconsultants.org/IFC_diploma_IFRS_Brochure.pdf
Thank you and regards,
Martina

I work for the Center for Professional Education and we are also
offering a 5 day bootcamp. Below is the link. If anyone is interested
in attending please let me know. I can arrange a discount for you as
well. Thanks.

http://www.cpeonline.com/conf/bootcamp/agenda.asp

Janet

Is this course been run only in the US as i am based in the UK and
would be interested in attending this.

Janet,
Is there any such Boot camp for IFRS conducted in India!
Regards
Asif

Related posts:

1. IFRS diploma from ACCA or ICAEW, which is better? I want to do a ifrs course but i m...

Related posts brought to you by Yet Another Related Posts Plugin.

Related posts:

1. Assessing for Impairment Indicators on Transition Date Question for anyone that has dealt with this issue: As...
2. Loss identification period, loan loss provision Hello, Can anyone tell me how the “loss identification period”...

Related posts brought to you by Yet Another Related Posts Plugin.

Related posts:

1. Fixed Asset Capilization Dear all Seasons greetings!! We have purchased a fixed asset...

Related posts brought to you by Yet Another Related Posts Plugin.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Thanks for your help

regards

You can certification in IFRS through accaglobal.com

You can also look at the courses with examination styled certification from ICAEW through their website.

Tony,

Related posts:

1. IFRS FAQ INTERNATIONAL FINANCIAL REPORTING STANDARDS Questions and Answers | Developed by...

Related posts brought to you by Yet Another Related Posts Plugin.

will it be general expenses or intangible assets 

Related posts:

1. Cash Flow Statement – How to Dear Experts, As we know that cash flow from operating...

Related posts brought to you by Yet Another Related Posts Plugin.

Related posts:

1. IAS -16 construction of hotel building on leased land Company A Parent company Own land and lease out to a...
2. Project costs-Land lease Dear all, This is my first participation in this forum....
3. Cash Flow Statement – How to Dear Experts, As we know that cash flow from operating...

Related posts brought to you by Yet Another Related Posts Plugin.

Related posts:

1. Construction Contract Case:  Party gets into a long term construction contract to...
2. Airline MRO Billing Accounting I work in a company specialized in doing MRO for...
3. IAS -16 construction of hotel building on leased land Company A Parent company Own land and lease out to a...

Related posts brought to you by Yet Another Related Posts Plugin.

Related posts:

1. Conversion of foreign currency expenses with local currency Dear I am in a financial organization. Our company pays...

Related posts brought to you by Yet Another Related Posts Plugin.

Related posts:

1. Conversion of foreign currency expenses with local currency Dear I am in a financial organization. Our company pays...
2. Project costs-Land lease Dear all, This is my first participation in this forum....

Related posts brought to you by Yet Another Related Posts Plugin.

I want to know the difference between IFRS and IAS.  As, there are IAS 1 to 41 standards already existing then why IFRS 1 to 8 was developed.

Secondly, are these two standards working parallel to each other or IAS is abondoned and now IFRS is working?

If someone could please guide me.Well I am “sorry” to ask a basis question from honourable members.

Sincerely,

Salman

See this link for the first question,

Related posts:

1. IAS PLUS Updates – IFRS Closing Out 2009 Dear all I suggest you an useful newsletter published by...

Related posts brought to you by Yet Another Related Posts Plugin.

Many Thanks
 

Related posts:

1. Non Profit Agency and Auditing Can a funding agency enter into a bilateral contract with...

Related posts brought to you by Yet Another Related Posts Plugin.