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+--- Thread: Help -accounting treatment (/thread-help-accounting-treatment)
Help -accounting treatment - macsav - 02-21-2010
I am the 100% shareholder of a cyprus resident company. During 2003 I decided to transfer to my own company a flat that was purchased by me in 1990. The problem now is that I do not know how to record the above mentioned transaction in my accounting records and financial statements. The flat was purchased for Cyprus pounds 25.000. What will be the accounting treatment for the transfer? Will I have to show the flat in the financial statements of the comoany and at what price? what about depreciation? And what happens now in 2009 that i have decided to sell the flat?
Thanks in advance
Savvas
- Dard - 03-11-2010
Cleondann dude, stop doing this embarrasing advertisement in every single post
Macsav IAS 16 permits two accounting models
Cost model The asset is recorded initially at cost and then depreciated and impaired subsequently
Fair value model The Asset is recorded at its fair value, less any subsequent depreciation and impairement
On transfer of the flat, was there any cash involved?