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Gifts under IFRS...!?

Dear AllGood Day!Let suppose i am running a good business. One of my friend give me2 Mercedes as a gift to my company. How we will adjust this gifted items in our accounting system according to IFRS. if we include in our Fixed Assets, Can we depreciate with the passage of time. Kindly share your valuable & quality knowledge. Thanks

Accounting Auditing IFRS Bookkeeping Finance
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Question added by Khaliq Raza MBA MS CFE AFA , Senior Accountant , ARCO TURNKEY SOLUTIONS CONTRACTING LLC
Date Posted: 2017/04/06
Upvote (1) Views (9) Followers (3) Answers (3) Report Question
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AHMAD OMAR CMA-CertIFR
by AHMAD OMAR CMA-CertIFR , Accounting Manager , NADIA BAKHURJI ARCHITECTS & INTERIOR DESIGN CONSULTANTS

I think the asset will be recorded as its Fair Market Value, by debiting Fixed Asset & Crediting Other Revenue.

If a company has received the gift, I think there's no need to compute and record the depreciation.

 

Thank you for your invitation :)

Ahmed Akande
by Ahmed Akande , Financial Accountant , Paycom Nigerian Limited (Opay)

I think IAS 20 should apply and be treated as donated asset ( Deferred Income) because you are not giving anything back in reciprocal... you debit the appropriate asset account and credit Donated Capital account... this will be adjusted to P/L to reduce the donated capital account and recognise it as other income on P/L

Mohammad Iqbal Abubaker
by Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator

The best and correct Answer added by: AHMAD OMAR-CMA  Senior Accountant 2 days ago

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