Search found 39 matches

by mehranmichail
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: 1920

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 ...
by mehranmichail
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: 1920

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. :)
by mehranmichail
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: 1920

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
by mehranmichail
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: 1920

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...
by mehranmichail
12 Nov 2019, 14:22
Forum: IFRS-related topics
Topic: Capital exp or revenue exp
Replies: 2
Views: 288

Re: Capital exp or revenue exp

Loads of thanks. I mixed tax with IFRS.
by mehranmichail
12 Nov 2019, 08:01
Forum: IFRS-related topics
Topic: Capital exp or revenue exp
Replies: 2
Views: 288

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...
by mehranmichail
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: 1244

Re: Motor vehicles in director's name used in company

Big thanks for helping out in understanding the treatment. I really appreciate it. :)
by mehranmichail
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: 1244

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...
by mehranmichail
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: 1244

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...
by mehranmichail
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: 751

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...
by mehranmichail
12 Jul 2019, 14:28
Forum: IFRS-related topics
Topic: Cash transfered into subsidiary's bank account accounted for as investment
Replies: 4
Views: 408

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.
by mehranmichail
11 Jul 2019, 20:48
Forum: IFRS-related topics
Topic: Cash transfered into subsidiary's bank account accounted for as investment
Replies: 4
Views: 408

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...
by mehranmichail
25 Jun 2019, 09:42
Forum: IFRS-related topics
Topic: How much revenue when invoice contains reimbursement of certain expenses
Replies: 3
Views: 654

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...
by mehranmichail
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: 1823

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...
by mehranmichail
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: 1823

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...
by mehranmichail
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: 1823

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...
by mehranmichail
08 May 2019, 11:13
Forum: IFRS-related topics
Topic: Reimursement vs income
Replies: 8
Views: 1142

Re: Reimursement vs income

:lol: I will tell him about this excellent forum.
by mehranmichail
08 May 2019, 10:53
Forum: IFRS-related topics
Topic: Reimursement vs income
Replies: 8
Views: 1142

Re: Reimursement vs income

Thanks a lot for guidance and reassurance. Actually my colleague /friend thinks otherwise, so just wanted to remove this confusion. :)
by mehranmichail
08 May 2019, 10:30
Forum: IFRS-related topics
Topic: Reimursement vs income
Replies: 8
Views: 1142

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.
by mehranmichail
07 May 2019, 22:46
Forum: IFRS-related topics
Topic: Reimursement vs income
Replies: 8
Views: 1142

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...
by mehranmichail
07 May 2019, 12:09
Forum: IFRS-related topics
Topic: Reimursement vs income
Replies: 8
Views: 1142

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...
by mehranmichail
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: 1310

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
by mehranmichail
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: 1310

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?