Questions & Answers
Amendment of IAS 16: Proceeds before intended use
Question In May 2020, IASB issued the amendment to IAS 16 applicable for the periods starting on or after January 1, 2022. This amendment says that we should not deduct any proceeds from selling items produced in the process of bringing the asset to the…
Testing goodwill for impairment
Question Our company acquired a subsidiary and goodwill on acquisition arose. According to IFRS, we have to test the goodwill for any impairment at least annually. How can we do it? The goodwill does not have any fair value and it’s not possible to determine…
Accounting for transfer of an asset from the owner-occupied PPE to the investment property
Question We apply the revaluation model for accounting for our buildings in line with IAS 16 Property, plant and equipment. Recently, we stopped using one of our buildings as our head office and we rented the building out to tenants. Consequently, we transferred this building…
Depreciation when asset is disposed off
Question Can we depreciate assets those are disposed of during the year? For instance, if one asset is used till October 10 and then sold on that day. Do we have to charge depreciation for the asset till October 10, 2020 since we have used…