02-19-2009, 10:06 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Uzair</i>
<br />Yes right hasaan it is to be recorded separately.
Because first of all offsetting is not allowed in this case,, see para2, IAS1.
The only instance in which such an offsetting will be allowed is where he re-purchases the goods sold,, se para13, IAS 18.
Now for your orignal question. Yes account payable can be negative and it'll be advance to your customer and will appear as an asset in your balance sheet.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Uzair,
This is just to tell that you mentioned paragraph 2 of IAS 1.
Kamran.
<br />Yes right hasaan it is to be recorded separately.
Because first of all offsetting is not allowed in this case,, see para2, IAS1.
The only instance in which such an offsetting will be allowed is where he re-purchases the goods sold,, se para13, IAS 18.
Now for your orignal question. Yes account payable can be negative and it'll be advance to your customer and will appear as an asset in your balance sheet.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Uzair,
This is just to tell that you mentioned paragraph 2 of IAS 1.
Kamran.
