I am working on the conversion of gaap financial statements to ifrs,
all necessary items of ias has been taken care off. please help me
to understand the logic of assest and owners equity.
Example : Gaap Values ifrs
Vehicle 15,000 15,000
Depricaiton -8,000 -3,000
Net book value 7,000 12,000
owner equity : 100,000
please note the following entry.
Difference in Deperication 5000dr
to owners equity 5000cr.
Gaap already have depricaiton of -8000 if i add 5000 deprciaiton will
reverse to -3000 which is the desired value.
The problem is with owners equity it will reduce by 5,000/- with
credit entry.
Can anybody help me explaining me why such effect on owners equity,
how best it can reflect correct value. I am mid of the work and
stuck up with this concept. Thanks and best regards.
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