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IFRS 2 Share-based Payment »

[6 Dec 2011 | No Comment | 1,241 views]
Accounting for Share Discount

under IFRS how does one treat discounts which are extended to shreholders who decide to pay their shares ealier than the scheduled date. For example they wee to pay out their share subscription in five installments over five years but decide to pay it all in the first year and as result they are given a discount. Does IFRS provides any guidance on how such discounts are to be dealt with? Should these discounts be amortised over the period which the shares should have been paid out.

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IFRS »

[15 Dec 2008 | One Comment | 4,121 views]

Dear allThis is just to inform you that IFRS file (pdf) in all EU Languages is
now online.Find your resource pdf here |
http://eur-lex.europa.eu/JOHtml.do?uri=OJ%3AL%3A2008%3A320%3ASOM%3AEN%3AHTMLHave a good joining.
Regards
Simone Salvi

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IFRS »

[15 Dec 2008 | No Comment | 2,674 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.
jay

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.
Craig

If you recognise an income in the Profit & Loss …

IFRS »

[15 Dec 2008 | No Comment | 3,423 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,
Sheetal

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 …

IFRS »

[15 Dec 2008 | No Comment | 3,743 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, …

AUDIT »

[15 Dec 2008 | No Comment | 2,482 views]

Dear Collegues,Really appriciate if anybody could share me the Hotel Internal Audit
Procedure and plan, stretegy (Hospitality). or any website link, PDF,
presentation file.Thanks in advance

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IFRS »

[15 Dec 2008 | No Comment | 2,211 views]

Dear Ifrs members,
A manufacturing company in plastic have main raw materials based on
oil and sometimes during the month the price of oil increase and
decrease very sharply. However, in the software of the accounting
system, the cost is based on standard cost changed only once a month.
The name of the software is BPCS.
My Questions are:
1. Do you have any ideas to the fluctuation of real cost ?
2. Is there any one know about this software and if so, could you
recommend on the standard cost and actual cost on this system?
3. What cost …

IFRS »

[15 Dec 2008 | No Comment | 2,941 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
 
 
MM

Hi there,

My answer would be the following:
Y has a …

IFRS »

[15 Dec 2008 | No Comment | 3,471 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.
 
Thanks
 
Sincerely yours,
Rakesh

dear rakesh

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

 

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.
Upul

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

IFRS »

[15 Dec 2008 | No Comment | 4,820 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.
Hemant

I think after the project is completed, the interest expenses, is charged to
P&L.
Krishnendu

Query is not clear:

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

IFRS »

[15 Dec 2008 | No Comment | 2,999 views]

Dear all.

I have a question on valuation of equity investments.
What is the best method to value an unquoted investment
Cheers
Shehzad  

Well for unquoted investment you could:
If there is substantial market and volume of such equity in the market then, you could value it using market price.
If there is not market, or if, say due to the legal implications (private co. for example), the equity cant have liquidity in the market due to restrictions in transferring such shares, net worth (intrinsic value) method can be used.
There are other options for valuations …

IFRS »

[15 Dec 2008 | No Comment | 4,744 views]

Dear friends,
Can you please give your opinion for the capitalization of the followings:
Modification to Existing Car Park
Construction of Temporary Car Park
Refurnish-Cooling Tower
Thanks
Hemant

Dear
I think that all of these costs should be capitalized.


Hesham

I agree with Hesham, it is to be capitalised, modification & refurnishing
extends the life of the existing asset, thus providing future benefits.& for Construction of Temporary Car Park, it is to be seen as to how
temporary is the car park. If it does not give you future benefits, like a
park for a couple of months, I think it should be …

AUDIT »

[15 Dec 2008 | One Comment | 2,647 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.
Regards,
Jeroen

 
 

http://www.ifac.org/Store/Category.tmpl?Category=Auditing%2C%20Assurance%20%26%20Related%20Services

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TRAINING »

[15 Dec 2008 | No Comment | 2,025 views]

Hi
Can someone tell me IFRS training centre at CHENNAI.
Thanks

ANANTH

Please find attached for your nominations / attendance.
Best regards,
Sridhar

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FINANCIAL INSTRUMENTS »

[15 Dec 2008 | No Comment | 4,257 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 …

FINANCIAL INSTRUMENTS »

[15 Dec 2008 | One Comment | 4,491 views]

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

 
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 …

TAX »

[15 Dec 2008 | No Comment | 13,562 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

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

AUDIT »

[15 Dec 2008 | No Comment | 2,453 views]

Hello

 
does anyone have sample internal audit questionary? SOX survey ? procedures etc.???
 
thanks

 
 

Dear
Could you specify the concerning areas u need sample questionnaires!

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CONSOLIDATION »

[15 Dec 2008 | No Comment | 5,949 views]

Dears
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
sheet.
Regards,
Hameed

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
Simon

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

OTHER IFRS »

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

Dear all,

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

Dear,
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.
Regards
Vatsala

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