Mohammad shouman barrels

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At what price should we take it in inventory? Hi Eke, it depends on their useful life and purpose. Thank you, Leo. This account's Tweets are protected. It is not so clear how to deal with low-acquisition-price-long-live items depreciate, control, valuate. Sometimes we use car for more than 1 year and sometimes we sell it before. Secondly, in the ideal situation, you should be able to estimate the carrying amount of parts that can be used and thus not written off with the damaged car. Depreciation of the second group spare parts depends on the way how spare parts is used.

  • How to Account for Spare Parts under IFRS IFRSbox Making IFRS Easy
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  • Dr Mohammad Shouman, Beirut, Lebanon. K likes.

    How to Account for Spare Parts under IFRS IFRSbox Making IFRS Easy

    أخصائي بأمراض الأذن والأنف والحنجرة،جراحة الراس والعنق تجميل الأنف والوجه. هاتف/‎. Financial Consultant at lebanon, Assistant Manager at Venus Center For Computers. lebanese university, Institute of ber hasan, Lebanese Candian Modern School.

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    You may say, we only have the right to use these assets.

    Thank you. For that, the management has to import spare parts for the machinery which will produce the desired units.

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    Tweets Tweets, current page. Does it mean that when the license period expires, you need to give these drilling bits and other equipment back to government?

    Sega August 6, at pm Hello Silvia thanks for the article, Greetings from Colombia, I have a question, what happens to assets that normally qualify as fixed assets for a sector as it can last more than a period eg 15 monthsbut what happens if that asset mime is used in a sector where the use and lasts less frequency of a period example 9 monthsin this case if it had acquired the asset in September x1 it will last me until June x2, as you would treat it as inventory and send results for 9 months deferred expense or send it as an expense from the date that withdrawal from warehouse, as presented at December x1, Something similar happens to me with uniforms to employees, these last me less than a year, when results would send, at one time removal from storage or throughout the months using the uniform.?

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    Ewuoso Joseph November 19, at pm Dear Silva, thanks for taking your time to educate and enlighten this generation in the area of your expertise.

    I just have a quick question hopefully you could help me out.

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    November 19, at pm Jumaa, it depends on what kind of spare part it is. November 19, at am Hi Sergey, sure, I got your point. Hollo sylvia, good explanation.

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    Depreciation of the first group spare parts starts when they are acquired and ready for usetogether with specific PPE item, and is calculated for the same period as PPE item.

    Does it mean in case of capital spare treat it as PPE only when its installed and start depreciate upon installation.

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    Note that all spare parts in this situation are stored in one and the same ware house. Include media. So we are pretty sure its to be treated as PPE.

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    We keep the spare parts for replacement if old part is damaged.

    Advise in this regard. Close Promote this Tweet. Back Next. But my opions is that only those spare parts could be capitalized they will use as a replacement of existing parts. I will greatly appreciate your response on this.

    Name, Mohammad Sobhi Shouman.

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    Yes, correct — when the license expires, the government owns the inventory it does not belong to us.

    If you expect to sell finished products below cost, then you can write down raw materials and in this case, you should use the replacement cost as a good estimate of NRV. I am not able to clearly understand the difference. This para8 has been amended in and now they require meeting definition of PPE to capitalize any spare parts, see below:.

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    Please check your inbox to confirm your subscription. Marie-Lise September 5, at am If a spare part is to be used for repairs and maintenance it should not be capitalized to the fixed asset register, but should be included in Working Capital i.

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    Am I correct in my understanding?

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    Also, the useful lives are the same or at least, they end at the same time. Hi, I just want to find out if you capitalize the motor of the machine or expense it? Victor Ejiro November 20, at pm This is beautiful…, Sylva, do keep it up. Are they consumed in less than 1 year?

    Comments

    • Vudolrajas

      23.07.2019 at 03:58

      Some spare parts are easy to classify, for example back-up engine with significant acquisition cost is a major spare part and thus accounted for as PPE. Joy July 24, at pm On disposal of the asset, do you consider any maintenance expenses as part of the asset carrying amount?

    • Vobar

      23.07.2019 at 22:45

      Joy July 24, at pm On disposal of the asset, do you consider any maintenance expenses as part of the asset carrying amount? December 6, at am Dear Bales, you need to classify the replacement cars based on what you do with them in average.

    • Meztikora

      23.07.2019 at 04:33

      Thanks for the tutorial. Thank you Amr.