lease Revision

PPE followed by IFRS 5

PPE
Recognition
fall under tangible asset category
measured initially at cost
Subsequent measurement - balance sheet date
at cost or revalued amount
eg: Car
Measure at cost initially
subsequently, at cost or revalued amt.
500000
Revalued- 400000
Next SOFP
loss has to go through P&L
Examiner tests on impairment
Costs include:
directcost to bring asset to present location
includes borrowing cost for qualifying asset (IAS 23)
dismantling cost( for which there is present obligation)

Qualifying asset takes a substantial t

Investment Property
imp
property held for rentals or capital appreciation or both.
Non current assets held for sale
imp
Tangible, NCA whose recovery is likely to happen by means of sale
4 Conditions
S
Sale is likely to happen in near term (1-2 yrs)
A
Should be available for sale
L
Likely to happen
E
Estimated reliably : sale value can be estimated reliably
All 4 conditions should be fulfilled in conjuction to each other
Initial measurement

Cost (Carrying cost)

lower of cost or NRV

Depreciation
not chargged on NCAHFS
not charged in case of investment propert on reval. Model
only charged on cost model

INTANGIBLE ASSETS
without physical presence
identifiable
transferable
should arise by a contract
R&D expenditure

sset takes a substantial time to complete

NCAHFS and Discontinued Operations

IFRS 5

Follow the acronym -SALE

immediate sale availability

- not pending any repairs

Should we capitalize repa

should be expensed if tha

in its present condition an
enhanced performance of
Capitalize

sale is highly probable

-committed
- active programme to locate buyer
-in 1 yr
-marketed at current FV
40 min imp case study 2
lecture till 46 min
now exam questions

first read on requirement of question

dec 2011 Q3

Scramble

a)

expensed to comprehensive income

what all concepts tested?
intangible assets IAS 38
impairment

As per IAS 38, Scramble is correct in cpitalizing the devp. Cost. Furthermore, scrmble treatm
in P&L is appropriate cz the expenses have been incurred to maintain the current std. witho
of the intangible asset

The business is correct in valuing the asset at historical cost cz it depends on the discretion
of Cost or Revaluation model, provided you they do it on a consistent basis without changin
Impairment Points.. Revisit in next lecture
Value in Use / Discounting techniques with no tax implication

b) SKIP
c)

Scramble bought Rashing

Rashing purhcased 25% SP of Santash

Ans

Per IAS 38, IA, as asset is categorised as an IA if the asset has a feature of identifiability an
Henceforth, the registration rights have been aptly treated as IA
However, the agent's feed results in extending the registration rights/ Player contracts / ac
the company will enjoy future economic benefits and the agent fees comes under the purv

hould we capitalize repair and maint. Cst or should we expense it to SOCI/ PnL

hould be expensed if that cost is incurred to keep the asset

n its present condition and if that RnM expense does not result in
nhanced performance of the asset

thermore, scrmble treatment of Rnm Cost by charging

ain the current std. without enhancing the performance

epends on the discretion of the mgt to value the asset at either

ent basis without changing te policy yr on yr

ature of identifiability and has a contractual evidence.

hts/ Player contracts / acquisition of new players with which

es comes under the purview of IAS 38.