Need help here.
I'm working on an assignment and is dealing with a situation where
the company i am auditing is adopting IAS 40 for the first time and
is adopting the fair value model. Para 80 of the IAS 40 reads as
follows:
"An entity that has previously applied IAS 40 (2000) and elects for
the first time to classify and account for some or all eligle
property interests held under operating leases as investment
property, shall recognise the effect of that election as an
adjustment to the opening earnings for the period in which the
election is first made. In addition:
a) if the entity has previously disclosed publicly (in financial
statements or otherwise)the fair value of those property interests in
earlier periods (determined on the basis that satisfies the
definition of fair value in paragraph 5 and the guidance in
paragraphs 36-52), the entity is encouraged but not required:
(i)to adjust the opening balance of retained earnings for the
earliest period presented for which such fair value was disclosed
publicly; and
(ii)to restate comparative information for those periods; and
b)if the entity has not previously disclosed publicly the information
described in (a),it shall not restate comparative information and
shall disclose that fact"
the company i am auditing has not previously published fair value of
its property interest publicly and therefore para 80b) applies.
However, i am facing the problem of how to present the changes if
follow literally the requirement of para 80b) i shall not restate the
comparative information.
Thanks in advance for any advice
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