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shall i put these expenses as period expenses (P&L) OR Capitalize these expenses to next year i mean (Project under progress) ? ? what do you think ? please advice me in IFRS AND GAAP >? PLEASE هناك مشروع بدأت به في ماذا اعتبر هذه المصريف المدفوعة على المشروع حتى هل اعتبرها مصاريف فترة تقفل في حساب الارباح والخسائر وبالتالي خسارة محققة للمشروع ام اعتبرها مشاريع تحت التنفيذ تظهر ضمن الاصول الثابتة للشركة لاقفلها العام القادم بمصروفاتها . ارجو الاجابة في ظل المبادئ المقبولة عموما وضوء المعاييرالمراجعة المحاسبية العالمية
If this an contracting contract and these cost related directly to the contract, as pert IAS,IFRS; this cost should be incurred in 2013 - income statement Or capitalized it until obtain the contract and incurred in it , hawever, if this cost incurred in income statement as of , it can not be refunded and incurred in contract income statement in Year -2014.
Apparently the cost relates to the contract which needs to be capitilized only if there is no indication of the revenue at this stage. If the company can reliably forsee the expected revenue then cost shall be debited to the income statement along with a portion of revenue in the P&L. (Percentage of completion method to be used.)
Expenses
Should Debit Work in Progress for USD50.00
Credit the cash / bank USD50.00
Advance Received
Cash / Account Debit USD50.00
Advance Received Credit USD50.00
shall i put it prepaid expenses OR project under prosses ? which is more accurate ... ?
