Recognition of books of a library

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Kounta-kinte
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Joined: 03 Sep 2020, 12:13

Recognition of books of a library

Post by Kounta-kinte »

Good evening guys .
A library contains a huge amount of books of low value in unit . How should we account for the books ? Can we classify it under IAS 2 when we know we aren't going to sell it ? Or we should aggregate the value of books and classify as a single or two assets and classify it as a PPE ? Thank you for your suggestions 😉
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Marek Muc
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Re: Recognition of books of a library

Post by Marek Muc »

is this a commercial library? does it report under IFRS?

Generally speaking, assets held for rental are PP&E under IAS 16
https://ifrscommunity.com/knowledge-bas ... isclosure/
Kounta-kinte
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Joined: 03 Sep 2020, 12:13

Re: Recognition of books of a library

Post by Kounta-kinte »

Thanks you for the contribution . Yeah it's a commercial library and yes it reports under ifrs .
It's now clearer to me that the books of the library can be classified as PPE of the entity .
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Marek Muc
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Re: Recognition of books of a library

Post by Marek Muc »

I see, how's the business going? Is it profitable?

You mentioned low unitary value. There is no provision in IFRS that would allow immediate recognition of an asset as an expense in P&L. It is often allowed under tax law, but you can follow the same approach for IFRS reporting only if the overall impact is immaterial
Kounta-kinte
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Joined: 03 Sep 2020, 12:13

Re: Recognition of books of a library

Post by Kounta-kinte »

Thank you once more . The overall impact is inevitably material of we aggregate the value of those books
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