Canada IAS 16 - When to start registering fixed assets in the books

What to do?

  • Book in 20X0, the invoice is received. We can debit a non-depreciable asset vs vendor account.

    Votes: 1 100.0%
  • Wait for the reception in 20X1 before booking it.

    Votes: 0 0.0%

  • Total voters
    1

Joined
Jul 20, 2022
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Hi,

The fixed asset budget process in our company is very tight. If you have been approved for a 10K CAPEX a specific year and you don't spend it fully, it's lost.

How will you capture the fixed asset in the current scenario? It is end of December 20X0, your fiscal year ends in December. You have ordered a PC, you received the invoice, the shipment confirmation from the vendor, but it will arrive at your premises on jan 5th 20X1.

Will you book it in fiscal year 20X0 - without trigerring any depreciation yet of course, as fixed asset to be received or something of that category?
Or should you wait for the reception of the asset before booking it ?

Thanks.
 
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Joined
Jul 4, 2021
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United Kingdom
Unfortunately I don't see how how you can record it as a fixed asset in your IFRS accounts - it doesnt meet the definition of an asset (ie a resource with economic value that an individual, corporation, or country owns or controls....), you don't control the computer, you haven't even received it yet (though you may have a prepayment, if you have paid for it). That said, I've known fixed asset budget processes that don't tie into IFRS rules, can you define capex in your internal rules as being IFRS additions plus amounts invoiced, not yet received?
 

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