International Financial Reporting (IRFSGRUNDLAGEN(ENGLISCH))
Summary
Summary of International Financial Reporting (IRFS/IAS Basics and Case Studies with Solutions and Calculations)
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Course
International Financial Reporting (IRFSGRUNDLAGEN(ENGLISCH))
Institution
International School Of Management
Here you can find my summary and transcript of Int. Financial Reporting, (a total of 17 sides). A script is not required directly because I added the assignments or case studies, including the solutions, calcualtions and legal texts (IRFS/IAS). Only the legal texts or the online IRFS should be used...
International Financial Reporting (IRFSGRUNDLAGEN(ENGLISCH))
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IFR
4.1 Case study: Gas Truck & eCars
Task A: Develop concrete questions addressed at the accounting department (Mr.
Books) in order to obtain all information relevant to assess the initial accounting
treatment, i.e. recognition, measurement, and presentation of the acquired vehicles.
Solution: IAS 16.7 16.15 – fixed assets
IAS 2 – inventory
TRUCK
1) Based on recognition IAS 16. 6/7 write down keypoint
- Intangible to be used long-term
- Probable future beneficial
- Reliability measurable
2) Initial recognition IAS 16.15
Financial cost IAS23.5 (qualifying assets)
a. Qualifying assets (normally 6 months at least) ex. Constructions productions
of Wiskey
b. Non-qualifying assets ( in this case 4.1)
Non-qualifying assets -> no finance cost activated -> put it in “profit lose”
IAS 16.19 b) -> not cost of PPE -> cost of introducing a new product or service.
Ex. Promotion & advertise
E-CARS
Based on IAS 2.6 -> definition, recognition
IAS 2.9/10/11-> initial measurement
10*16000 = 160000 -> Acquisition costs -> IAS 2 10/11 cost of purchase
D-handly cost(40000), customs(18000) -> IAS 2.11
160000 + 40000 + 18000 = 218000 -> Acquisition cost
Task A: which IAS/IFRS is applicable in this scenario?
IAS20 -> government grants
Task B: Check the specific requirements for the application of that standard.
IAS20.7 -> government grants
- Transfer resources -> 1 million
- Grant -> money
- Assistance -> advice
- Invest funds -> IAS 20.29 -> presentation of grants related to income
Task C: Work out a suggestion on how to account for the environment grant under
that standard.
Information:
1 million government, 1million own -> Acquisition 2million
Useful life -> 10 years
3 million -> invest next three years
Two methods:
Gross method -> PPE deferred income(延遲收入)
1) Also got the same as net.
2) Debit cash 1 million
Credit deferred income 1 million
Net method -> PPE
1) Debit PPE 2 million
Cash 2 million
2) Debit cash 1 million
Credit PPE 1 million
, 4.3 Case study: “Empty office Building”
Task A: IAS 40.5/8 c)/16
Owner occupied property -> owner used it itself
IAS 40.9 e) -> the following are examples of items that are not investment
property and are therefore outside the scope of this standard: this case no
finance lease. BUT, this case is an investment property.
Presentation:
IAS40.20 -> An owned investment property shall be measure initially at its cost.
IAS40.30 -> cost model (IAS40.33-55)and fair value model (IAS40.56)
Because asset used before -> have the cost model
Use fair value to -> increase their carry amount
Choose one to measure.
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