Impairment Test in the Covid-19 Pandemic
Here we are, another year comes closer to its and – and what a year! Pandemic entered into our lives in early 2020 and we all must admit it – this was totally new experience, since only older generations can remember similar situation. Yes, it…
Can you capitalize demolition cost under IFRS?
If you acquired land with some old building and you plan to demolish that building, how should you treat the demolition cost and the carrying amount of old building? Can you capitalize it to the new asset? Or expense it? It depends…
How to deal with different useful lives of PPE within the group?
How to handle the situation when the parent requires subsidiary to apply different depreciation rates or useful lives than in the local legislation.
How to account for free assets received under IFRS
The best things in life are free… … at least that’s what Janet Jackson sang in one of her top hits. However, when your company receives some free assets, then the question is: Are they really received at no cost and no strings attached? Is…
Top 3 Questions about IAS 41 Agriculture
I rarely publish articles about specific sectors, but this time, I decided to make an exception. Why? The reason is that although most of you do NOT deal with agriculture, it is still one of the most important industries in the world. It is so…
Accounting for discounts under IFRS
Last update: July 2023 Discounts are probably the most popular selling tool in business. Without a doubt, many companies discount the price for their products or services in various forms, for example: Buy 1, get 1 free (and modifications), Get 10% off for purchases over…
How to Account for Decommissioning Provision under IFRS
When a company acquires certain types of long-term assets, it sometimes has an obligation to remove these assets after the end of their useful lives and restore the site. Typical example of such an asset is an oil rig or a nuclear power plant. When…
What are directly attributable costs?
Last update: 2023 When you acquire a long-term asset, you can include directly attributable costs to the initial measurement of its cost. Although IFRS define directly attributable expenses quite clearly and provide a few examples, there are many different items we are not sure about….
The Best of CPDbox 2015
The year-end is coming closer and closer; the closings have already started to push their pressure on all of us, the exam season approaches and we live the busy lives. I know that this part of the year is usually the second busiest for any…
How to Account for Spare Parts under IFRS
One of the biggest issues related to property, plant and equipment is accounting for spare parts, servicing equipment, stand-by equipment and similar items. IFRS standards are pretty silent about this topic, the guidance is very limited and as a result, companies need to rely on…
