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If one of the office building is under construction, Company have incurred some amount as Insurance premium of building under construction. Shall we capitalize this expense in building or record as an expense?
Insurance is an expense.
Hi Sir,
If we have a downward revaluation , it appears as an expense. Will it be under other comprehensive income or operating expenses.
Hello Sir,
I am looking at the cost of intangible asset. Would the cost involve in training staff to understand the functioning of a new machinery be considered part of an intangible cost?
No – it would be an expense in the SOPL
Hi Sir,
Could you please help me in an accounting issue which I am dealing with in my work.
Could you please help me in this case, regarding fixed asset and long term debt:
A company lets say “A” transferred a fixed asset (property) to the shareholder of the company “A” as a way to settle the debt of the company to the shareholder.
The net asset of this property was lets say 15.000 and the debt of the company to the shareholder was 12.000. The double entry in company “A” was:
Debit: Shareholder Debt 12.000
Debit: Cash 3.000
Credit: Fixed Asset 15.000
The amount of 3.000 was payed to the company to match the differences between the net fixed asset and the shareholder debt.
The question is: under IFRS is this transaction permitted if yes what kind of disclosure should the company “A” bring in.
Hi Sali
Is this shareholder debt his/her personal debt (director’s loan) or the company’s debt?
Thanks