Recent content by whatisaccounting

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    Unrealised exchange difference.

    Hi, the unrealised FX was being reflected in the P&L as at FY 20x3 In the first quarter of FY 20x4, Company A revaluate the FX in Trade payables by reversing the unrealised FX into FY 2014 P&L, then revaluate the FX in Trade payable using the quarterly-end rate.
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    Unrealised exchange difference.

    Scenario: Every quarter, Company A will make an revaluation on the foreign currency of their Trade Payable. For example loss in exchange rate: Dr Exchange difference (unrealised) $555 Cr Trade payables $555 Following quarter, Company A will reverse the revaluation made in the previous...
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    Impairment loss or doubtful debt?

    For example. My Company have been giving loans to another company (which is a related-party - common director and shareholder). However, for 3 years, no repayment was made by that related-company. Reason for the loans is because the management foresees the related-company to grow, however they...
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    Basic question on fixed assets depreciation + impairment

    Lets say premises cost $100,000. Straight line depreciation @ 2% = ($2,000/year) Current accumulated depreciated is $16,000 Impairment loss $20,000. my question is will impairment loss affect my depreciate amount next year?
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    Recording of fixed assets

    Scenario: Motor vehicle cost $100,000 was purchased by the company. Received $10,000 discount on by the motor dealer. Therefore total amount paid is $90,000. So what is the accounting entry? 1) DR Motor vehicle $100,000 CR Discount received $10,000 CR Bank $10,000 2) DR Motor...
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    Questions on bank reconciliation

    Thanks for the reply. From what my friend said, accrual accounting is not determined by when receipts and payments are received and recorded in their cash book. So cheque or payment receipts has no impact to revenue recognition, so it doesnt really affect much. Comments for the above...
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    Questions on bank reconciliation

    I am new to auditing and my client does not have bank reconciliation. 1) The company's bank statement ties to general ledger. 2) Upon inquiry, the accountant told me that cheques were issued before year end date but not recorded in the books as the cheques was not cleared. So the...