Ifrs 9-2: what is revaluation of plant assets? when should revaluation be applied?

Week 2 Learning Team Collaborative Discussion: Prepare for Week 4 IFRS Essay

Things labeled ME are by me

Discuss this week's objectives and the following concepts comparing the GAAP to the IFRS. How do they relate to the practice of accounting and its uses in business?

· IFRS8-1: What are some steps taken by both the FASB and IASB to move to fair value measurement for financial instruments? In what ways have some of the approaches differed?

· IFRS 9-1: What is component depreciation, and when must it be used?

· IFRS 9-2: What is revaluation of plant assets? When should revaluation be applied?

· IFRS 9-3: Some product development expenditures are recorded as development expenses and others as development costs. Explain the difference between these accounts and how a company decides which classification is appropriate.

Message expanded.Message readIFRS 9-2

posted by , LT Sep 14, 2015, 5:55 PM

Revaluation of plant assets is the process of change values from book value to fair value. This is required when there has been substantial economic changes in the market. For example, if you purchased a building ten years ago and it has appreciated because of real estate boom, at this time it can be reevaluated to fair value.

Words: 58

Message expanded.Message readIFRS 9-2

posted by AC , Sep 14, 2015, 5:15 PM

9-2 The revaluation of plant assets consists of book value which cost less accumulated depreciation in which the fair value may differ significantly. For example, if a company purchases a building about 10-15 years ago it can have appreciated value because of the rise in real-estate, this can be reevaluated to fair value. When assets are reevaluated under IFRS, all of the assets must be treated under the same evaluation method.

IFRS 9-2

posted by ME (you) , Sep 14, 2015, 4:59 PM

The revaluation of plant assets is process of when the value changes from book value to fair value. Revaluation should be applied when there has been a drastic economic change in the market.

Words: 33

Message expanded.Message readRe: IFRS 9-2

posted by AC , Sep 14, 2015, 5:17 PM

Hi JE,

Sorry i didn't know you where doing this one as well.

Words: 13

Message expanded.Message readIFRS 9-1

posted by ME (you) , Sep 14, 2015, 4:02 PM

Component depreciation consists of dividing a building into various components and then depreciating each of the components separately for tax purposes, usually to receive a larger tax deduction. It must be used if the parts of the assets offer different patterns of benefits.

Words: 43

Message expanded.Message readFASB and IASB

posted by ME (you) , Sep 13, 2015, 7:51 PM

FASB and IASB both are requiring that companies report assets at either book value or fair value. Both boards are also working on combining the financial instruments standards, which will in turn set forth the types of financial assets that are required to be measured at fair value.

Words: 48

useful websites

posted by PS , Sep 13, 2015, 6:53 PM

Hello all,

I have some useful websites that I found during the last class. I hope they help.

http://www.ey.com/Publication/vwLUAssets/EY-US-GAAP-vs-IFRS-the-basics-2013/$FILE/EY-US-GAAP-vs-IFRS-the-basics-2013.pdf

http://www.pwc.com/en_US/us/issues/ifrs-reporting/publications/assets/ifrs-and-us-gaap-similarities-and-differences-2014.pdf

In Christian Love.

Words: 38

Week 3 Learning Team Collaborative Discussion: Prepare for Week 4 IFRS Essay

Discuss this week's objectives and the following concept comparing the GAAP to the IFRS. How do they relate to the practice of accounting and its uses in business?

· IFRS 10-2: Explain how IFRS defines a contingent liability and provide an example.

· IFRS 10-3: Briefly describe some similarities and differences between GAAP and IFRS with respect to the accounting for liabilities.

Message expanded.Message readIFRS 10-2

posted by ME (you) , Sep 20, 2015, 6:34 PM

IFRS defines a contingent liability as an obligation that has a probability of occurring in the future. The items should be included in the notes but will not be included in the financial statements. An example of on IFRS contingent liability is a bus company files a lawsuit against a school for damages for $100,000. The school's attorney feels that the suit is without merit, so the school discloses the existence of the lawsuit in the notes of its financial statements. Months later, the school's attorney suggests that the company should settle out of court for $15,000; at this point, the liability is both probable and can be estimated, so the school records a $15,000 liability.

Words: 113

Applied Sciences

Architecture and Design

Biology

Business & Finance

Chemistry

Computer Science

Geography

Geology

Education

Engineering

English

Environmental science

Spanish

Government

History

Human Resource Management

Information Systems

Law

Literature

Mathematics

Nursing

Physics

Political Science

Psychology

Reading

Science

Social Science

Home

Blog

Archive

Contact

google+twitterfacebook

Copyright © 2019 HomeworkMarket.com