Search found 39 matches
- 25 Sep 2020, 09:47
- Forum: General accounting and financial reporting discussion
- Topic: Difference between start up cost vs leasehold improvement when opening a new shop
- Replies: 8
- Views: 4625
- 25 Sep 2020, 09:11
- Forum: General accounting and financial reporting discussion
- Topic: Difference between start up cost vs leasehold improvement when opening a new shop
- Replies: 8
- Views: 4625
Re: Difference between start up cost vs leasehold improvement when opening a new shop
If expense break up is say £7000 on services for designing and applying theme £3000 for creative concept £2000 foe electrical work £1000 paint walls M I right to think design work and expense on creative concept are marketing in nature? Paint and electric. Exp may be capitalised assuming are better ...
- 25 Sep 2020, 08:59
- Forum: General accounting and financial reporting discussion
- Topic: Difference between start up cost vs leasehold improvement when opening a new shop
- Replies: 8
- Views: 4625
Re: Difference between start up cost vs leasehold improvement when opening a new shop
Thanks for feedback. Here in UK they follow FRS which is local GAAP. It still has this operating/finance lease types.
- 25 Sep 2020, 08:16
- Forum: General accounting and financial reporting discussion
- Topic: Difference between start up cost vs leasehold improvement when opening a new shop
- Replies: 8
- Views: 4625
Re: Difference between start up cost vs leasehold improvement when opening a new shop
I am really thankful for reply. About directly attributable cost, is not directly attributable cost related to assets already recognised in books? Now here we have operating lease, exp is charged to P&L over lease term. Kind regards
- 25 Sep 2020, 01:21
- Forum: General accounting and financial reporting discussion
- Topic: Difference between start up cost vs leasehold improvement when opening a new shop
- Replies: 8
- Views: 4625
Difference between start up cost vs leasehold improvement when opening a new shop
Hi there, Was wondering if could get help to get answer to following question. A clothing brand boutique opens a new shop by leasing it for 10 years. It does some electrical work, some theme design and decoration work. Will this expense come under start up cost of opening a new facility definition w...
- 12 Nov 2019, 14:22
- Forum: IFRS-related topics
- Topic: Capital exp or revenue exp
- Replies: 2
- Views: 958
Re: Capital exp or revenue exp
Loads of thanks. I mixed tax with IFRS.
- 12 Nov 2019, 08:01
- Forum: IFRS-related topics
- Topic: Capital exp or revenue exp
- Replies: 2
- Views: 958
Capital exp or revenue exp
Hi again :) Replacement of alleyway door is capital or revenue expense? In my opinion replacement with a similar type one will be revenue , replacement with a different and better in quality and durability may be capital and if there was none before, it will be capital. M i right? Will really apprec...
- 07 Oct 2019, 20:12
- Forum: General accounting and financial reporting discussion
- Topic: Motor vehicles in director's name used in company
- Replies: 4
- Views: 3409
Re: Motor vehicles in director's name used in company
Big thanks for helping out in understanding the treatment. I really appreciate it.
- 06 Oct 2019, 16:05
- Forum: General accounting and financial reporting discussion
- Topic: Motor vehicles in director's name used in company
- Replies: 4
- Views: 3409
Re: Motor vehicles in director's name used in company
:) thanks for reply. The company follows local GAAP. It's lease accounting is similar to IFRS 16. Yes u r right when it comes to small companies, things could become confusing due to lack of clear cut lines. Let's suppose IFRS apples in this case, even then, for ifrs16 to apply, there should be an a...
- 06 Oct 2019, 13:08
- Forum: General accounting and financial reporting discussion
- Topic: Motor vehicles in director's name used in company
- Replies: 4
- Views: 3409
Motor vehicles in director's name used in company
Hi, request for guidance in the following case A taxi business incorporated as limited company. Sole director /shareholder has 5 vehicles leased in his own name. These vehicles are used by company. Income is coming into company's bank account , running expenses are incurred by the company and paid t...
- 11 Sep 2019, 23:15
- Forum: IFRS-related topics
- Topic: Can we capitalize first time road tax, fuel and insurance when buying vehicle
- Replies: 2
- Views: 2947
Re: Can we capitalize first time road tax, fuel and insurance when buying vehicle
Thank u so much for guidance. Kind regards
- 11 Sep 2019, 19:42
- Forum: IFRS-related topics
- Topic: Can we capitalize first time road tax, fuel and insurance when buying vehicle
- Replies: 2
- Views: 2947
Can we capitalize first time road tax, fuel and insurance when buying vehicle
Hi again, Needed guidance in following case In UK when u buy vehicle even on cash, u must insure it and pay a tax, road tax or first time DVLA tax. Can we capitalize these cost, including payment for fuel to bring vehicle to premises as directly attributable cost of bringing the asset to the locatio...
- 12 Jul 2019, 14:44
- Forum: IFRS-related topics
- Topic: Cash transfered into subsidiary's bank account accounted for as investment
- Replies: 4
- Views: 1703
- 12 Jul 2019, 14:28
- Forum: IFRS-related topics
- Topic: Cash transfered into subsidiary's bank account accounted for as investment
- Replies: 4
- Views: 1703
Re: Cash transfered into subsidiary's bank account accounted for as investment
Thanks for guidance. Actually have not come across a case where cash had to be treated as investment. As per my understanding, I thought only equity or debt instruments can be classed as investment as per IFRS 9. Further, could not find definition of investment in IFRS.
- 11 Jul 2019, 20:48
- Forum: IFRS-related topics
- Topic: Cash transfered into subsidiary's bank account accounted for as investment
- Replies: 4
- Views: 1703
Cash transfered into subsidiary's bank account accounted for as investment
Hi, a very strange case here. A parent company transfered money into bank account of its subsidiary and the purpose was told to be as investment and treated as such in accounts of parent. No other details are given like shape of return to parent. In IFRS 9 , debt and equity are given as the two majo...
- 25 Jun 2019, 14:40
- Forum: IFRS-related topics
- Topic: How much revenue when invoice contains reimbursement of certain expenses
- Replies: 3
- Views: 1996
Re: How much revenue when invoice contains reimbursement of certain expenses
Thank you so much for giving excellent reference.
- 25 Jun 2019, 10:58
- Forum: IFRS-related topics
- Topic: How much revenue when invoice contains reimbursement of certain expenses
- Replies: 3
- Views: 1996
Re: How much revenue when invoice contains reimbursement of certain expenses
Thanks a lot, I will have a look.
- 25 Jun 2019, 09:42
- Forum: IFRS-related topics
- Topic: How much revenue when invoice contains reimbursement of certain expenses
- Replies: 3
- Views: 1996
How much revenue when invoice contains reimbursement of certain expenses
Hi, Very basic but a bit confused by reimbursement element. First instinct is to recognize whole amount. Service provider is issuing invoices to his client which include separate line item for expenses. E. G. Services charged £100 Expenses. £ 30 Total invoice. £130 How much revenue to recognize? Tha...
- 13 May 2019, 13:34
- Forum: General accounting and financial reporting discussion
- Topic: Property in director /shareholder name be shown as asset of limited company
- Replies: 6
- Views: 4658
Re: Property in director /shareholder name be shown as asset of limited company
Yes u r right, separate legal entity concept is here.
- 13 May 2019, 12:32
- Forum: General accounting and financial reporting discussion
- Topic: Property in director /shareholder name be shown as asset of limited company
- Replies: 6
- Views: 4658
Re: Property in director /shareholder name be shown as asset of limited company
Got it. However, have a question on "Important IFRS question here is whether the entity (taken separately from its owner) has the ability to direct the use of the property." Is it a must that this ability is required to be supported by evidence of some legal document? The property is in hi...
- 13 May 2019, 11:48
- Forum: General accounting and financial reporting discussion
- Topic: Property in director /shareholder name be shown as asset of limited company
- Replies: 6
- Views: 4658
Re: Property in director /shareholder name be shown as asset of limited company
Thanks for feedback. Yes it looks confusing but you will see a lot of similar cases here in UK with owners of properties doing rental business. You wrote "If the entity has no legal/ contractual right to the property, I would say that the entity does not control the property". Do you think...
- 12 May 2019, 04:24
- Forum: General accounting and financial reporting discussion
- Topic: Property in director /shareholder name be shown as asset of limited company
- Replies: 6
- Views: 4658
Property in director /shareholder name be shown as asset of limited company
Hi marek Case in hand; 1. Property is in director/shareholder personal name 2. He has a limited company. All receipts and payments Associated with property like rent and expenses are done through company bank account. 3. He gets salary from his company as is on payroll of company. 4. There is no doc...
- 08 May 2019, 11:13
- Forum: IFRS-related topics
- Topic: Reimursement vs income
- Replies: 8
- Views: 3951
Re: Reimursement vs income
I will tell him about this excellent forum.
- 08 May 2019, 10:53
- Forum: IFRS-related topics
- Topic: Reimursement vs income
- Replies: 8
- Views: 3951
Re: Reimursement vs income
Thanks a lot for guidance and reassurance. Actually my colleague /friend thinks otherwise, so just wanted to remove this confusion.
- 08 May 2019, 10:30
- Forum: IFRS-related topics
- Topic: Reimursement vs income
- Replies: 8
- Views: 3951
Re: Reimursement vs income
Yes this is the case, the landlord has given all this headache to be taken care of by agent in exchange of fee. This is the justification of the fees charged by agent for taking care of repair and maintenance.
- 07 May 2019, 22:46
- Forum: IFRS-related topics
- Topic: Reimursement vs income
- Replies: 8
- Views: 3951
Re: Reimursement vs income
Thanks a lot for reply. Well, the goods and services are provided by third parties (private contractors) as the agent arranges these services for a total cost plus fee. However, agent is responsible to landlord for ensuring quality work is carried out. Will this responsibility on the agent mean he c...
- 07 May 2019, 12:09
- Forum: IFRS-related topics
- Topic: Reimursement vs income
- Replies: 8
- Views: 3951
Reimursement vs income
Hi, case in hand; Letting agent accounts; agent carry out repair work and pay to contractors out of his pocket. He charges fees for this from landlord say 10% on top of total cost. Then he gets this money back from landlord in two ways. 1. Issue invoice to landlord for work done 2. Deducts money fro...
- 06 May 2019, 12:27
- Forum: IFRS-related topics
- Topic: Purchase of land to be given to a proposed company in exchange for shares
- Replies: 10
- Views: 4901
Re: Purchase of land to be given to a proposed company in exchange for shares
Yes u r right, I took it in present context which is not applicable
- 06 May 2019, 00:49
- Forum: IFRS-related topics
- Topic: Purchase of land to be given to a proposed company in exchange for shares
- Replies: 10
- Views: 4901
Re: Purchase of land to be given to a proposed company in exchange for shares
Hi, which IFRS will apply if it is to be treated as investment? IFRS 9 or Ias 40, the two main standards dealing with investment ? Which provision of either of the standard? IFRS 9 deals with financial assets, land is not... So, the question is which standard to apply if treated as investment?
- 05 May 2019, 01:13
- Forum: IFRS-related topics
- Topic: Accounting for bank account opened by estate agent for depositing tenants rent and paying out to lanlords
- Replies: 4
- Views: 2431
Re: Accounting for bank account opened by estate agent for depositing tenants rent and paying out to lanlords
Thanks a lot. Your forum is the ultimate source for guidance.