Accounting for gold under IFRS

Discussion in 'UK Accountancy' started by Aftab Khan, Mar 6, 2010.

  1. Aftab Khan

    Aftab Khan Guest

    Dear all

    Someone has asked me this question and I thought I should post it
    here. What is the treatment for accounting of gold under IFRS?

    If a company owns gold (for whatever reason) - would this be
    classified within cash? If not, then does it fall under IAS 39? What
    category? And does it require fair valuation then?

    Any tips, suggestions would be helpful. Please quote any specific
    standards. It has been posted on http://www.ifrsissues.com/viewtopic.php?f=37&t=151
    so please post your answers on the site as well if you can.

    Thanks.

    Aftab Khan
    Administrator
    www.ifrsissues.com
     
    Aftab Khan, Mar 6, 2010
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  2. Aftab Khan

    yiannikos

    Joined:
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    No

    have a look at IAS 39 IG Section B/ B.1

    it should be treated as commodity not cash.

    Also the treatment of the gold depends whether the company holds the gold for own use or not. If its for own use then it is treated as per IAS2 otherwise IAS 2 para 3 applies (most of the times) and company should hold it at FV less costs to sell.
     
    Last edited: Jul 23, 2010
    yiannikos, Jul 23, 2010
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