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
Recognition of books of a library
Re: Recognition of books of a library
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/
Generally speaking, assets held for rental are PP&E under IAS 16
https://ifrscommunity.com/knowledge-bas ... isclosure/
-
- Posts: 6
- Joined: 03 Sep 2020, 12:13
Re: Recognition of books of a library
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 .
It's now clearer to me that the books of the library can be classified as PPE of the entity .
Re: Recognition of books of a library
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
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
-
- Posts: 6
- Joined: 03 Sep 2020, 12:13
Re: Recognition of books of a library
Thank you once more . The overall impact is inevitably material of we aggregate the value of those books