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Harald ("Harry") Zingel: die richtige Antwort auf Ignoranz und Innovationsfeidlichkeit

mariusebert — Fri, 29 Aug 2008 21:24:24 +0000

Zur Zeit geben meine Teilnehmer die beste Antwort auf Ignoranz und Innovationsfeindlichkeit, die man geben kann. Sie schreiben in das Forum des Herrn Zingel, dass Sie ihre Prüfung zum Betriebswirt/in IHK mit der Spaßlerndenk-Methode® bestanden haben.

Herzlichen Glückwunsch!

In einer Analogie zur Medizin könnte man vielleicht sagen:

Wer heilt hat Recht!

Besonders gefällt mir auch der Beitrag eines Forum-Teilnehmers, der schreibt: "Im nachhinein, könnte ich mich selber ohrfeigen, dass ich nicht mehr recherchiert und somit 1 1/2 Jahre verschenkt habe."

Man könnte hier noch ergänzen: Neben dem Ohrfeigen könnte auch helfen, weniger Zingel-Texte zu lesen und zu glauben...

Bis zum nächsten Mal

www.spasslerndenk.de

Internationales Rechnungswesen: Was sind eigentlich latente Steuern?

Harry Zingel — Fri, 29 Aug 2008 18:58:15 +0000

Während im deutschen Handelsrecht das Maßgeblichkeitsprinzip durch viele Teuerreformen nach und nach verloren gegangen ist, hat es im internationalen Rechnungswesen nie existiert, denn ein Regelwerk mit weltweitem Geltungsanspruch am Steuerrecht aller Länder der Welt zu orientieren, ist offensichtlich unmöglich. Das IAS/IFRS-Regelwerk kennt daher in IAS 12 Vorschriften, wie aus handelsrechtlicher Sicht mit den oftmals abweichenden Bewertungen umzugehen ist, die durch nationales Steuerrecht dem Bilanzierungspflichtigen verpflichtend vorgegeben sind.

Mehr...

Update: SEC Approves Exposing Proposed IFRS Roadmap

Darton Group — Fri, 29 Aug 2008 00:41:59 +0000

The Securities and Exchange Commission (SEC) yesterday agreed to a series of steps that could lead to the required use of IFRS by U.S. issuers by 2014.

Read AICPA's full report at http://www.ifrs.com/updates/sec/SEC_approves.html.

Also check out BusinessFinanceMag.com's report at http://businessfinancemag.com/blogpost/sec-sets-road-map-ifrs-0828.

Have a PRC GAAP/IFRS Question

ifrslist — Thu, 28 Aug 2008 15:30:00 +0000

Can anyone confirm if the PRC has officially transitioned to full IFRS GAAP reporting and if so, what was the effective date? Are companies mandated to report in IFRS GAAP or can they still report in PRC GAAP up to a certain point?

Thanks for any clarification any of you can provide.

Also, if you have any resources you might refer me to, that would be great.

Debbie

Debbie,

I have recently being looking into the IFRS status of PRC, including a recent visit there. Unfortunately at this time there does not appear to be a straight-forward answer. My understanding (from some good sources) is:

1 - Listed entities mandatory from 2007, although I understand this is via "new CAS" as opposed to direct IFRS as pronounced by the IASB. The "new CAS" have some amendments to the IASB issued versions. (if you google "new CAS" you should find at least one reasonable publication on the standards in english);

2 - No official announcement, but I'm told that someone from the MOF commented recently at a professional conference that they may move to make the "new CAS" mandatory for medium and large unlisted entities from 1 January 2009. I have heard this independently from two good sources. Obtaining a definition of medium/large was also challenging.

3 - I gather that there is also some existing exemption(s) that would apply to foreign controlled entities (although I don't imagine it would extend to listed entiites - but this is a pure guess on my part);

4 - I believe there is also at least one Province that has already independently mandated the new CAS for entities operating in its region.

If you are looking at this from a business impacts perspective, I would recommend you obtain professional advice on your own entity's circumstances - even these resources may struggle to provide you ready accurate information.

I hope this is some help.

If anyone else on this List has some additional clarifying information then I would appreciate your response.

regards

I don't think so, see this link

http://en.wikipedia.org/wiki/IFRS

Hello,I am a B com graduate interested to know about IFRS. I
heard about accounting standards. now i am working as
an accountant, but i want to know more about corproate
reporting. Pls help me to select a good Course in this
field,

http://www.asc.gov.sg/Look in other topics on IFRSlist.com for links to potential learning
material but there is no on line learning site, above link is a reference to
all IFRS, they are easy ro read (except for the financial instruments
rules),

Kind regards,

Henk Oonk

Significance

ifrslist — Thu, 28 Aug 2008 15:30:00 +0000

There has been a lot of hue & cry for IFRS in India presently... i agree that globalization is a factor fuelling it but in addition to it what other plus point does it have and does a person who is exposed to IFRS in next 2 years stand in any advantage here in India...

It is called changing with the times! If the US can consider convergence with IFRS then ICAI wanting to adopt it as GAAP is understandable rather than expecting companies who are raising funds overseas to maintain two sets of accounting records. Anyway, it should not pose a problem to the run of the mill accountant since IGAAP is based on IFRS as modified for current economic and business considerations. The question is whether Companies Act and other laws including taxation will be amended in time fot 2011.

Positive:

When you are first you are a forming party of the landscape and benefits will follow the front,

Uniform financial information facilitates comparability and attracts capital sources, lowering capital cost for a company

Negative:

It is just a marketing tool for the accounting firms

What is IFRS

ifrslist — Thu, 28 Aug 2008 15:29:00 +0000

My question is what is ifrs is about? why we need it? what is the link of IFRS with IAS and financial statements

See link to wikipedia

http://en.wikipedia.org/wiki/Ifrs

regards,

Henk Oonk

thanks for the nice message.please can you visit iasb website so you can get more and more.otherwise contact me.

Fair value model for PPE

ifrslist — Thu, 28 Aug 2008 15:29:00 +0000

The company should have used the (IAS 16) from the beginning, as this is illiquid investment.

Any way it is possible to apply the cost principle instead of the value, but there should be a reversal of the previouse capital earnnings recognized under ( IAS 40).

In addition a footnote disclosure stating all the effects and details of the principle changes.

Regards

A.A . Rahman

Dear All,

Please guide me on the below

A Company is having land on which construction is going on. The intention of the company is to let it out for the rental income. Now in previous year the same land is shown under Investment property (IAS 40) and the fair value model was applied for the revaluation and the increase in valu was routed through profit & loss.

Now in current year, the Company intends to treat this land as PPE (IAS 16) (the construction work is still going on) and apply the cost model. So now advice me on the below

Can we show the land under PPE (IAS 16) from Investment property (IAS 40 - shown in previous year)

can we apply cost model V/s fair value model (applied previous year)

Please advice at the earliest.

Best Regards
Suraj Ratan Mohta

dear suraj ratan,

you will account for the land in PPE and will use cost model from the date of the decision of the managment to consider the land for own use (production of goods, rendering services or for mgt purposes).

rgrds,

ammad

IAS 39

ifrslist — Thu, 28 Aug 2008 15:28:00 +0000

Dear Sir/Madam,

I would like to have some detailed information about IAS 39.

Thanks and Regards

Karim

Do you mean ias 39? Well you can access the publication Financial instruments under IFRS by Pricewaterhousecoopers at www.pwc.com/ifrs.

regards

S James

http://www.asc.gov.sg/

Use this link to explore the complete original text,

Kind regards,

Henk Oonk

Need material on IFRS

ifrslist — Thu, 28 Aug 2008 15:27:00 +0000

Dear Friends,
Can somebody help me in providing material on IFRS.
I am a Chartered Accountant and a starter in this area and need to upgrade myself for better oppurtunities.
Regards
Asif

you can go to www.iasplus.com

Regards,

Vine

Use this link to see all IFRS text,

http://www.ccdg.gov.sg/frs/index.htm

regards,

Henk Oonk

You can acces any of follow sites

www.iasplus.com

http://www.pwc.com/Extweb/service.nsf/docid/EF6512AE29055B42802571250053F91A

You will be find a lot publications about IFRS, and examples of how apply it.

Roberto Santos .

Hi
The IASB website is also useful www.iasb.org
KPMG have a few resources www.kpmg.co.uk/master/pubs.cfm
www.accountancyintelligence.com tries to pull the whole lot together.

Cheers

Dear Henk Oonk,

Your link is dead. Do you have their other link?

Thanks to a lot of your help.

http://www.asc.gov.sg/

Contingent Liabilities

ifrslist — Thu, 28 Aug 2008 15:26:00 +0000

Friends,

I have a query regarding a case, which is like that:

A company have a practice to set off its creditors against it debtors and for that it gives a note for contingent liabilities , now the company don't want to give the note for contingent liabilities as it is affecting its borrowing capacity , is it possible for company to do so, is there any case law for that, Please Guide me it is urgent.

Thanks

Abhishek

Well, under IFRS it is not allowed to net the balance of receivables and payables. Maybe it is still allowed under local rules or habits. However, neither presentation affects the borrowing capacity. A bank will always 'normalise' a balance sheet in the format they require for internal approval processes. Hence it is more a question of who someone is talking to, a loan sales agent or an banking approval person.

So I suggest that the company just uses normal IFRS, separate receivables and payables and see what a bank is willing to borrow.

Kind regards,

My friend,

The situation is not like that as you understood, I have to tell u in detail, A company have some creditors say $ 1,000,000, the company also has a Debtor from whom an amount more than the company is liable to pay is receivable now through a legal agreement the company has endorsed his liability to that Debtor, but there is still a contingency that it may be possible that the debtors may not pay the amount for that purpose the company account that liability as a contingent one and make the note for that in his financial Statement, now the company don't want that note in his financial statement due to some reasons,

Now the question, arises is there any explanation on the basis of which that note for contingencies can be ignored to be stated.

In short I am looking for some decisions or explanations in which it is explained that when a liability is not required to be treated as contingent even its liability to pay may arise in future

Ok, so there is a clear contract that connects the receivable and payable. The contingency arises from the uncertainty as to whether the receivable will be paid or not.

First item to consider would be: is there any thing about risk sharing in the contract regarding non-payment of the receivable?

Second: is the receivable and the payable long term? Or is it regularly renewed (i.e. amounts received and new sales invoices added to the receivable and amounts paid and new purchase invoices added to the payable?

If yes, then consider what the risk is of non-payment by the debtor, the company (not the auditor) has to make a case to proof that non-payment is a non-existing risk (they can ask for annual reports, credit reports etc. the conclusion would then have to be that there is no contingent risk of non-payment.

However, this is a very triggy item, so let the company it self take the lead in evidencing that the risk is no longer contingent.

Regards,

The company can do neither. Under IFRS as well as under the company law, it is bound to show debtors and creditors separately, and MUST show the contingent liabilities on the balance sheet irrespective of its impact on its borrowing capacity. After all, the financial statements are meant to show a true, fair and complete view of a comapany's state of affairs.Regards

AbhishekNot sure why you are looking towards IFRS for a solution when the corresponding IGAAP standard is more lenient in this regard and is already based on IAS 37.

The first question that you need to ask is 'how contingent is this contingent liability' and why would the Debtor not pay if there is a legal agreement in place. You would still need to give a note in the accounts about the new arrangement and management's view that the debtors would honour the agreement. Legal entitlement to offset is another issue that you need to look at.

In any case, the auditors would object to any exclusion of relevant details, unless the company is willing to have a qualified audit report.

> alsohas a Debtor from whom an amount more than the company is

> whichthat note for contingencies can be ignored to be stated.

> someoneis talking to, a loan sales agent or an banking approval

> messageis addressed. If you are not the intended recipient, please

Thanks every one for wonderful suggestions.

I agree with Mr. Saleem. Only such Creditors and Debtors can be set off where company has established legal right to do so. However, Contingencies and Commitments must be disclosed in the financial statements as IFRSs require, disregard of implications.

Articles on IAS 21

ifrslist — Thu, 28 Aug 2008 15:25:00 +0000

Sir,

I am a Trainee Student of Chartered Accountancy of Pakistan (ICAP) and doing articles in Anjum Asim Shahid Rahman Chartered Accountants Karachi.

I have started my study of Mod-E and need of comprehensive article on different IAS so Please

mail me a soft copy of IAS-21 (The Effects of Changes in Foreign Currency).

Thankful to u for this favor.

Regards,

I AM A CHARTERED ACCOUNTANT PRACTISING IN INDIA AND SPECIALISING IN IFRS.

AS REGARDS YOUR QUERY YOU LOG ON TO www.accountingreform.ru WHERE YOU CAN GET WORKBOOKS FOR ALL IFRS

Thank you very much for the link. I am a university lecturer in the Caribbean and I find the link very useful

Very Usefull link

Thanks a mil

Regards

Can any body send me complete International Financial Reporting Standards and its related issues?

ifrslist — Thu, 28 Aug 2008 15:24:00 +0000

Hi I am new to this group

can any body send me complete International Financial Reporting Standards and its related issues?

Thnkhs..

Yagnesh,

You are really new to IFRS that you don't know you need to pay for it. But, you are smart enough to join a group for it. Attached is a list of IFRS resources you can get a lot of free stuff online, if you like. Enjoy your exploring.

TOPIC FOR LIVE PROJECT

ifrslist — Thu, 28 Aug 2008 15:24:00 +0000

Hello All

I am a management student .Taken Finance as my specilization.

As a part of our curiculum i am suppose to do a live project (kind of research taking a particular company as a tool on particular topic).

Can anyone guide me on which topic to choose.

Thanks and Regards

Hi Neela,

From my perspective, I suggest something to do with FX risk – not necessarily regarding currency trading per se, but more geared towards the risk experienced by multi-national companies when evaluating transfer pricing, intercompany transactions, financial reporting etc… I currently have an MBA candidate working for me that is tasked with modeling exchange risk related to electronic payment processing (credit cards).

There are plenty of topics out there – just a matter of choosing something that peaks your interest. I'm sure whichever topic you choose, there will be plenty of people on this list that will be able to provide some guidance.

Hi Neela,

The suggestion from Sonny is quite interesting. To add on:

As you are in india now, and apparently india is going on adopting IFRS by 2011, you can take accounts of company and see if you were applying IFRS in some transaction what could be the Impact in bottom line, Assets, equity, Liability, etc...Something similar

Kind regards

Neela

The Indian Institute has only issued a concept paper on IFRS Convergence which will initially be applicable to listed and major companies and thereafter to other companies. If you choose to look at this project then I have two suggestions -

Firstly, go on the ICAI website www.icai.org and download the Concept Paper which was written in July 2007 and have a look at it.

Secondly, look at those companies in India which went in for an AIM listing in the last two years or who had to restate their financial statements for overseas listings. This would be a good start.

Please note that the ICAI has recently released two standards on Financial Instruments which are literally copies of IAS 32 and IAS 39 with a few amendments to Indianise it. Other IFRS have already been adopted in some form or the other and other projects are on their way which would reduce the differences should India chose to go ahead with the Convergence project by 2011 in the manner being proposed in the Concept Paper and if the necessary regulatory and Company Law changes be effected by then.

Regards

DEAR ALL,

THE ICAI IS PLANNING TO LAUNCH AN ONLINE COURSE ON IFRS PROBABLY ON THE 4TH FEB., 2008 .

YOU MAY LOG ON AN GO THROUGH THE COURSE.

List of Indian companies preparing as per IFRS

ifrslist — Thu, 28 Aug 2008 15:24:00 +0000

Hi can any one please tell the list of indian companies preparing as per
IFRS. Also are their statements available in their websites

Hi aseem,

1) Great Eastern Energy Corporation Limited

2) Noida Toll Bridge

3) Infosys

This list may not be exhaustive

Allocation of depreciation

ifrslist — Thu, 28 Aug 2008 15:23:00 +0000

Dear All

Can you please help me in allocating derection in the followin scenario

In a glass industries one main machine is being used to produce mould and how we can allocate that depreciation of main machine either on the basis of apportionment or fully we will charge that depreciation to either main plant or to mould cost.

What will be the accounting entries in this case.

Reagards.

In actual main machine is being used to porduce moulds so let me know can we put depreciation cost of main machine in the production cost moulds.

What should be the entry in this concern ?

Waiting for your reply

IFRS Financial Statements from North American Companies

ifrslist — Thu, 28 Aug 2008 15:23:00 +0000

I am looking for current IFRS Financial Statements from Canadian or US Companies. Homburg Investments is a Canadian real estate company that produces IFRS statements, but I am looking for more.

Anyone know of other companies?

Thanks

Have you tried Deloitte's website? They have quite some references, but note if the model financial statements include those newly amended.

http://www.iasplus.com/fs/fs.htm#2007ifrsmod

PRIOR YEARS' EXPENSES

ifrslist — Thu, 28 Aug 2008 15:23:00 +0000

Q. How are 'Prior year's expenses defined and treated?

Hi IFRS

it will be treated as lablity for the caming year

Prior year expenses are expenses incurred / related to prior year but booked in current year. Such expenses must be shown separately.

--
Thanks & Regards

Cost allocation basis of internal audit fee between 2 entities

ifrslist — Thu, 28 Aug 2008 15:23:00 +0000

Dear All,

I require your help in the basis of cost allocation can be done for an internal audit fee between two entities.

BestRegards,

The appropriate basis in the instant case may include:

1. Turnover of the respective entities,

2. Networth of the two entities

3. In the ratio of Other Audit fees like Statutory audit fees of the respective entities.

In the absence of complete details, we can just suggest the above.

Regards

Dear Alll

Can anyone help me in my quary

In a Glass industry one machine is being used for the other to produce Product -A-.

Can we charge depreciation of the main machine in the cost of Product-A- what accounting entries we will be passing.

Regards

I may be missing your question, but here's the je's:

Product B - Depreciation expense $100

Product A - Depreciation expense $100

Finished goods - Product B $100

Product B - absorption $100

I'm not a plant accountant, just taking a guess here.

Budget control

ifrslist — Thu, 28 Aug 2008 15:22:00 +0000

What is the different between budget control and budgetary controls

million thanks

Dear Sandeep,

All costs directly related to software development can be capitalised including salary and travelling expenses provided it meets the recognition criteria as per standard on Intangible Assets.

hello friends,

Our company is under going major software up-gradation and the implementation is only schedule on 1-1-09. Need help to relate which IFRS standard i should be referring to as far as capitalisation is concerned. Can expenses like Travel cost should be capitalised as the software is upgraded developed offshore.

would appreciate your inputs.

Cheers,

Sandeep

Dear Friend

A Budget

· Is a predetermined statement of a company's objectives during a period of time.

·The budget is like a plan which guides the managers who are responsible for achieving certain business objectives.

·The budget normally has an overall or master budget which is made up of sectional/subsidiary budgets prepared by the different sections in the company.

· Be careful that a budget is a plan but a forecast is merely a prediction of what will happen as a result of a given set of circumstances.

Budgetary Control

· Is a system which uses the budgets for planning and controlling a business activities.

· It quantifies and is financially oriented to guides the managers to achieve certain business objectives..

· Managers will compare the actual with the budgeted figures and the variances will then be investigated and corrective actions be taken

Regards

Hi Kalehiwet,

There is no as such a difference between budgetary control and budget control. Both indicates the control aspect of the budget where favourable and unfavourable variance explanations are used as a feed back to higher management to be used as appropriate.

Aklilu

Though I have already clarified in this matter by citing the basics of budget and budgetary control.

Once again I would like to make it absolutely clear that Budgetary Control is a Technique which uses the Budgets as process or tools to exercise the controlling and evaluating them on the parameters defined to find out the variances as well as to acertains the reasons for them.

Basically budgets form an integral part of Budgetary control process/system. On the other hand Budgets Control does indicate the same process i,e, Control thru Budgets.

However, if one really wants to establish some difference it can be traced out fundamentally with the planning and preparation part of budget exercise but again such an exercise would become the part and parcel of Budgetary Control System. Budgets are basically the plans or estimates or yardsticks against which actuals are monitored and variances are reflected to take corrective actions.

Regards

I concur.

Best Regards,

Sudan Anduze

Difference of exchange

ifrslist — Thu, 28 Aug 2008 15:20:00 +0000

Dear All ,
Now we are part of an International Company : so we have to report monthly figures of our 35 units , our 35 units are in different country so different currency ,

We are Consolidating all the units in The Holding and we report one figure to the Worldwide company , every month they send us the rate that we should use.

MY QUESTION IS : AS PER MY KNOWLEDE FIXED ASSETS SHOULD HAVE A HISTORICAL RATE AND WE SHOULD NOT DO A MONTHLY EVALUATION FOR THAT , BUT THEY ARE ASKING US TO DO SO .

CAN ANY ONE ADVISE HOW WE DEAL WITH FIXED ASSETS IF THERE IS MONTHLY EVALUATION????

Hi Tony

Historical cost is used when we have acquired fixed asset in foreign currency (21.23(b)). But while consolidating and presenting financial statements in presentation currency, closing rate should be used. (21.39(a)).

I hope this will help.

Dear Tony,

I agreed with your aproach - fixed assets should be kept at hystorical cost and that's it all about.

No revaluations are necesary in foreign currency.

Best regards,

Dear Tony

For Consolidation purpose, IAS21 uses closing rate method. Then you should used closing rate for all assets and liabilities to translation.

Fixed assets used historical rate when you used for foreign currency transactions.

Don't be confused about foreign currency transactions VS Foreign currency translation.

Consolidation process used Foreign currency translation from functional currency into a different presentation currency.

Best Regards;

Wichet

PS. Please see Vikas' opinion, I strongly agreed with him.

Exchange transaction

ifrslist — Thu, 28 Aug 2008 15:20:00 +0000

Good morning all

My client which is in the construction industry has been receiving assets in exchange for construction revenue. The Standards say

IAS 18

When goods are sold or services are rendered in exchange for dissimilar goods or services, the exchange is regarded as a transaction which generates revenue. The revenue is measured at the fair value of the goods or services received, adjusted by the amount of any cash or cash equivalents transferred.

IAS 16

In an exchange transaction the cost of assets acquired should be measured at the fair value of the items given up. {Assuming that we can measure the fair value of items given up and the transaction does not lack commercial substance}.

Suppose the fair value of the items given up {the construction services rendered} amounts to $100 and the fair value of the asset received amounts to $150. What are the entries that we will post in the ledger to recognise the revenue and the asset aquired.

Many thanks for the assistance.

Regards,

In this case u need to adopt the fair value of construction revenue or the received Assets which ever u can easily and accurately measure the fair value. If u r able to measure both the assets then follow simple average of the two assets.

--

Thanks & Regards

Sri Lanka, Mauritius and Singapore

ifrslist — Thu, 28 Aug 2008 15:20:00 +0000

Hi,

Somebody can tell me whether IFRS is applicable in the following countries and what are the reporting currency:
1.                   Sri Lanka,
2.                   Mauritius
3.                   Singapore

Can anybody provide me draft copy of accounts filed with above mentioned countries in ENP business (Oil and Gas exploration companies).

Regards,

Hi Amit

Sri Lanka: IFRS Permitted / Currency Sri Lanka Rupee (LKR)
Mauritius: IFRS Required for all domestic listed companies / Currency Mauritian Rupee (MUR)
Singapore: IFRS Not Permitted - Singapore GAAP converging with IFRS but significant differences still exist / Currency Singapore Dollar (SGD)

For ENP Financial statements, please be more specific on which entities you are interested.

Regards

Antonello Dessanti

Re: [IFRS List] construction company

ifrslist — Thu, 28 Aug 2008 15:18:00 +0000

On Wed, Aug 27, 2008 at 11:23 PM, Simone Salvi <salvi.simone@gmail.com> wrote:

Forwarded conversation
Subject: [IFRS List] construction company

------------------------

From: zeeshan saleem <shan_acca@yahoo.com>
Date: Thu, Jul 31, 2008 at 9:30 AM
To: ifrs@ifrslist.com

Hey to All,

Can you people help me out to find out the internal control system and rules and regulation of a sample construction company?

if anyone can send me information or tell me about the web site.

ill be greatfull.

Regards,

Zeeshan Saleem

----------
From: Marin Kukov <MKukov@postbank.bg>
Date: Thu, Jul 31, 2008 at 9:34 AM
To: ifrs@ifrslist.com

Hello,

Internal control system is PWC TeamMate EWP but try to find something on PWHC site or Deloitte web site as approach or rules.

From: zeeshan saleem [mailto:shan_acca@yahoo.com]
Sent: Thursday, July 31, 2008 10:30 AM
To: ifrs@ifrslist.com
Subject: [IFRS List] construction company

Re: [IFRS List] Holiday accrual

ifrslist — Thu, 28 Aug 2008 15:11:00 +0000

On Wed, Aug 27, 2008 at 11:19 PM, Simone Salvi <salvi.simone@gmail.com> wrote:

Forwarded conversation
Subject: [IFRS List] Holiday accrual

------------------------

From: <T.Massaad@thggrp.com>

Date: Tue, Jul 1, 2008 at 1:30 PM
To: ifrs@ifrslist.com

Deal All , as per IFRS we should take monthly accrual for the yearly holiday leave . But in our case
The company doesn't pay 13 month or 12 month plus 1 month leave the system is that we got 12 months salaries and 1 of these months will be off so actually we work 11 months we got paid for 12
My question is : since the salaries exist in the PL on a monthly basis an accrual for holiday will not duplicate the expenses ?
or we consider it as unproductivity expense???

tony

----------
From: Veronique Weets (Cethys) <veronique@cethys.com>
Date: Wed, Jul 2, 2008 at 5:48 PM
To: ifrs@ifrslist.com

In fact you should make sure that the entity does not have any employee costs in the month the employee takes his or her holiday. Therefore you should accrue 1/11th of the holiday expense in each month the employee works as an extra employee cost, and reverse this accrual in the month no service is rendered.

Veronique

Véronique Weets

Senior Trainer Cethys

Doctor in Applied Economics

00 32 497 59 38 57 (mobile)

veronique@cethys.com

www.cethys.com

http://www.linkedin.com/in/veroniqueweets

P Please consider your environmental responsibility before printing this e-mail

From: T.Massaad@thggrp.com [mailto:T.Massaad@thggrp.com]
Sent: dinsdag 1 juli 2008 13:31
To: ifrs@ifrslist.com
Subject: [IFRS List] Holiday accrual

Internal Virus Database is out-of-date.
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Internal Virus Database is out-of-date.
Checked by AVG Free Edition.
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