One of the best lectures I have ever seen. The topic is explained so nicely (without any extra nonsense talk) that I am forced to watch every IFRS topic from you now.
Sir suppose we are using a vehicle having the cost 550000 anuual dep 1lack for 5 year after 3 years we changed the engine whoch cost 2lack now what will be the usefull life and the depriciation? Should we change the dep value?
IAS 40 will be applied to Land and Building if giving for rental purposes. IAS 16 will be applied to other then Land & Building if giving for rental purposes.
Just want to know wht if , the asset Plant is only used for 10-11 months in a year or not at all used in a year. Does it makes any difference to term such plant as asset under IFRS ?
if payment is deferred so what is ur mean by Discounted value like in ur example 60000 will pay later for the asset so we will book asset with the value of 600000 ????and what is interest amount here
vikas sir, i wish to know whether transportation of ppe is included in initial cost ppe. ex if i m bringing furnitutre and shop owner says 200 rs is transport cost. is it part of direct attributable cost or seperate we willcharge.
Hi Mr. Vikash, very good style of teaching, can you please let me know does your lectures on IFRS cover all the syllabus of IFRS exam or only some selected IASs you have uploaded on youtube. Regards,
Hi, these videos are NOT Created to cater to any course or syllabus. However, I have created a playlist to help you find all videos in one place th-cam.com/play/PLZwOrBFnF4hBA5Okf76F9xYhEFIerHicD.html
modifying or adding any part into a machine would be charged as cost??? Example: Adding axel with wheels into a newly purchased generator would be charged as cost???
one more doubt is about the exchange of the asset, explaining the doubt through example if i bought a car from you of cost 5 lakh, in exchange i have given you a machine of 6 lakh at what value i should recognize the car in my books
It's very important to assess the FAIR VALUE of both the assets and the CARRYING AMOUNT of the asset given up. IAS Para 26 says that where the "Fair Value" of both the asset received and asset given up can be measured with equal reliability, the fair value of the asset given up is used to measure the cost of the asset received. However, if the fair value of the asset received is measure more reliably, that value is used. If the acquired item cannot be measured at fair value then the asset should be measured at the carrying amount (i.e. net value in your books after accumulated depreciation) of asset given up. Accordingly, the Car may be valued at Rs 6 Lakhs in your example. However, you may have to assess that the value of the asset received may provide evidence of impairment in the asset given up. in such case, value assigned to the new asset may be written down. That is, you effectively write down the value of the car to 5 Lakh to provide for impairment in the value of the machine given up. [Think, why would you exchange a machine of value 6 Lakh for a car whose value is 5 Lakh - most probably because the machine was now worth only 5 Lakh]
Sir, Good tutorial. But pls try to make it short. I mean comsider video streaming difficulty. For example when u write, can do fast forward, when u erase it can cut, plus some other ways too this video duration can be made to short
Sir, If an entity owns a fleet of company cars and executive vehicles, and other property, plant and equipment in order to service the fleet. It is decided to revalue some of it's property, plant and equipment. Which of the following options would comply to IAS16? (a) Revalue only the cars and not the executive vehicles (b) Revalue only those parts of the fleet that have increased in value (c) revalue only one-half of each class of plant, property and equipment (d) revalue an entire class of property, plant and equipment According to my understanding from your lecture, it has to be (d). Kindly, respond with an answer and reasons to whichever is right.
Correct, the adopted policy (Cost or Revaluation) should be applied to the whole of a class of PPE and not to only individual assets within a class. However, you may consider identifying fleet of cars and executive vehicles as separate class - will depend on business circumstances (e.g. fleet and executive vehicles have clearly defined separate purposes, life, utility etc.). PS: (b) Approach is a strict NO. The revaluation approach should NEVER depend on increase in value. You revalue to assess whether there is an increase/decrease in value.
sir please i have a doubt please clear you told that for buying of the asset if we borrow money then the interest cost will be capitalised with the PPE. Again you have said about the deferred payment, when we are making a deferred payment then it should be capitalised at discounted value?? then why interest cost is capitalized in the former case. Hope you get my doubt. Thanking You Mita Agarwal
There are 2 things there - Capitalisation of Borrowing Costs and Measurement of Asset when asset is bought for deferred payment WHERE YOU HAVE TAKEN A LOAN TO BUY/CONSTRUCT THE ASSET: An entity must capitalise the borrowing costs (e.g. Interest expense calculated using effective interest method, Foreign exchange differences arising from Foreign Currency borrowings as adjustment to interest costs, and Finance charges in respect of finance leases under IAS 17), that are directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. All Other borrowing cost should be expensed in P&L in the period incurred. DEFERRED PAYMENT: The cost of an item of PPE is the cash price equivalent at the date when the asset is recognised. When PPE is acquired on payment terms that are deferred beyond normal credit terms, the cost in those circumstances is the discounted amount being the cash price equivalent. The difference between this amount and the total payments is treated as interest payable over the period of credit, UNLESS it is capitalised during the period of construction (As above).
its still not completed if i am not wrong we do have many other things in IAS 16 right ? let say disposal of asset and etc do we have any lecture on that as well and thanks a bunch for this lecture it was very helpful indeed !!
One of the best lectures I have ever seen. The topic is explained so nicely (without any extra nonsense talk) that I am forced to watch every IFRS topic from you now.
+Perm mann if a teacher gives examples den it would be extra nonsense talk as u guys just wanna cram dont wanna learn basics
One of the best lectures I have ever seen & now I am watching all your presentation,please do more presentation Sir
Nice one brother precise and straight forward......thanks
thank you sir. for your valuable time i am a ica student and your lecture helps me to build better concept on ifrs
I have never seen any lecture like him. I thank you so much
Wonderful teaching. You also carry your students along so well. Thanks for the lecture. So interesting
Thank U very much for sharing such kind of topics. Really, it has enriched my knowledge.
jah keep it up Vikash.... my understanding is growing from now on wards hopefully I will be able to solve problems based on this PP&E CHAPTER
Way of teaching is so nice with students r active learning sir
You're teaching style is super
Thank you so much 🙂
Thank you so much one of the best lectures I have seen in ifrs. Please provide more lecturers regarding ifrs sir
Very good video
It helped me in financial reporting for acca
Thank You for sharing valuable knowledge with us!!
Congrats for your Way of Teaching using only Good English
Wonderful video. I wish I could LIKE more than once.
Thank you so much sir. Amazing explanation 👍
Dream teacher 🙌🙌 this was good
please what did you says in 6:19?
Nice lecture... Qualifying asset criteria for borrowing cost was missed out...
Fantastic and awesome lecture.
Just brilliant sir, really love it
R u an ACCA student
@@snehamore2130 yes
When u will give exam do u have latest module
@@snehamore2130 Right now iam preparing f7( financial reporting) and it's exam is at 6th June
Modules of which paper are you asking?
Oh m going to give F7 in September 2019 hence asking 2019 module
Borrowing cost will not come when calculate the orginal cost of asset but ur mentioned in the format
Borrowng costs are parts of the intial cost of an asstet
what about the insurance paid at the time of purchase of machinery. so we need to capitalize it ?
Sir suppose we are using a vehicle having the cost 550000 anuual dep 1lack for 5 year after 3 years we changed the engine whoch cost 2lack now what will be the usefull life and the depriciation? Should we change the dep value?
you are a fantastic teacher
Could any one explain please difference between rebate and discount
Sir please, it's a good lecture but what are some of the teaching and learning materials to be used
What is the difference between Ind as and IFRS
about IAS 38 you have any lecture
IAS 40 will be applied to Land and Building if giving for rental purposes.
IAS 16 will be applied to other then Land & Building if giving for rental purposes.
Just want to know wht if , the asset Plant is only used for 10-11 months in a year or not at all used in a year. Does it makes any difference to term such plant as asset under IFRS ?
Sir, what about estimation removable cost, should we make a discount for it also same like differed payment for the purchasing of the assets ?
if payment is deferred so what is ur mean by Discounted value like in ur example 60000 will pay later for the asset so we will book asset with the value of 600000 ????and what is interest amount here
sir IAS 10??
vikas sir, i wish to know whether transportation of ppe is included in initial cost ppe. ex if i m bringing furnitutre and shop owner says 200 rs is transport cost. is it part of direct attributable cost or seperate we willcharge.
Hi Mr. Vikash, very good style of teaching, can you please let me know does your lectures on IFRS cover all the syllabus of IFRS exam or only some selected IASs you have uploaded on youtube. Regards,
Hi, these videos are NOT Created to cater to any course or syllabus. However, I have created a playlist to help you find all videos in one place
th-cam.com/play/PLZwOrBFnF4hBA5Okf76F9xYhEFIerHicD.html
modifying or adding any part into a machine would be charged as cost??? Example: Adding axel with wheels into a newly purchased generator would be charged as cost???
Sohel Rana if it is increase the useful life time which can be recognized as asset,unless otherwise which would be treated to expense..
one more doubt is about the exchange of the asset, explaining the doubt through example
if i bought a car from you of cost 5 lakh, in exchange i have given you a machine of 6 lakh
at what value i should recognize the car in my books
It's very important to assess the FAIR VALUE of both the assets and the CARRYING AMOUNT of the asset given up.
IAS Para 26 says that where the "Fair Value" of both the asset received and asset given up can be measured with equal reliability, the fair value of the asset given up is used to measure the cost of the asset received. However, if the fair value of the asset received is measure more reliably, that value is used.
If the acquired item cannot be measured at fair value then the asset should be measured at the carrying amount (i.e. net value in your books after accumulated depreciation) of asset given up.
Accordingly, the Car may be valued at Rs 6 Lakhs in your example. However, you may have to assess that the value of the asset received may provide evidence of impairment in the asset given up. in such case, value assigned to the new asset may be written down. That is, you effectively write down the value of the car to 5 Lakh to provide for impairment in the value of the machine given up.
[Think, why would you exchange a machine of value 6 Lakh for a car whose value is 5 Lakh - most probably because the machine was now worth only 5 Lakh]
Hello ...vikas....could you please upload IAS 16 income tax video....pls
Sir,
Good tutorial. But pls try to make it short. I mean comsider video streaming difficulty. For example when u write, can do fast forward, when u erase it can cut, plus some other ways too this video duration can be made to short
Awesome 😊👌
Sir why to say P&L rather than P or L A/c, b/s Profit & Loss together not possible
Arif Pathan N .M
Sir, If an entity owns a fleet of company cars and executive vehicles, and other property, plant and equipment in order to service the fleet. It is decided to revalue some of it's property, plant and equipment. Which of the following options would comply to IAS16?
(a) Revalue only the cars and not the executive vehicles
(b) Revalue only those parts of the fleet that have increased in value
(c) revalue only one-half of each class of plant, property and equipment
(d) revalue an entire class of property, plant and equipment
According to my understanding from your lecture, it has to be (d).
Kindly, respond with an answer and reasons to whichever is right.
Correct, the adopted policy (Cost or Revaluation) should be applied to the whole of a class of PPE and not to only individual assets within a class.
However, you may consider identifying fleet of cars and executive vehicles as separate class - will depend on business circumstances (e.g. fleet and executive vehicles have clearly defined separate purposes, life, utility etc.).
PS: (b) Approach is a strict NO. The revaluation approach should NEVER depend on increase in value. You revalue to assess whether there is an increase/decrease in value.
Thankyou soo much.. Helped me a lot.
Removal cost should be added at present value
If you are giving Property ( Land, Building or both ) on Rent then it fall in IAS 40 ( Investment property ) ...
if you bought asset for the purpose of generate income then it should be treated under ias 40
sir please i have a doubt please clear
you told that for buying of the asset if we borrow money then the interest cost will be capitalised with the PPE. Again you have said about the deferred payment, when we are making a deferred payment then it should be capitalised at discounted value?? then why interest cost is capitalized in the former case. Hope you get my doubt.
Thanking You
Mita Agarwal
There are 2 things there - Capitalisation of Borrowing Costs and Measurement of Asset when asset is bought for deferred payment
WHERE YOU HAVE TAKEN A LOAN TO BUY/CONSTRUCT THE ASSET: An entity must capitalise the borrowing costs (e.g. Interest expense calculated using effective interest method, Foreign exchange differences arising from Foreign Currency borrowings as adjustment to interest costs, and Finance charges in respect of finance leases under IAS 17), that are directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. All Other borrowing cost should be expensed in P&L in the period incurred.
DEFERRED PAYMENT: The cost of an item of PPE is the cash price equivalent at the date when the asset is recognised. When PPE is acquired on payment terms that are deferred beyond normal credit terms, the cost in those circumstances is the discounted amount being the cash price equivalent. The difference between this amount and the total payments is treated as interest payable over the period of credit, UNLESS it is capitalised during the period of construction (As above).
Mita Gopal Agarwal
Good work
So nice
very nice
highly appreciated sir
Thank you sir
nice
GOOD
English is my mother tongue, but I have a hard time understanding the speaker.
you don't know English than
You must be lying
its still not completed if i am not wrong we do have many other things in IAS 16 right ? let say disposal of asset and etc do we have any lecture on that as well and thanks a bunch for this lecture it was very helpful indeed !!
Thank you Sir.