Booking an impairment charge for employee and other demo cars. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Email me at this address if my answer is selected or commented on: Email me if my answer is selected or commented on, negative international critique with respect to IAS2, positive and negative critique with respect to the standard of ias 2. Because Sharpe feels that the cost to store these bars, including the demurrage, is a good investment given the high value of gold right now, he continues to store it. Eligible disability-related modifications include changes you make to accommodate wheelchairs, such as: Restructuring charge September 20, 2018 A restructuring charge is a large one-time write-off taken by a business in contemplation of a reorganization. He then takes the proceeds from that sale and buys a large portion of stocks on the stock market. Top. Email me at this address if a comment is added after mine: Email me if a comment is added after mine. I guess you mean the demurrage and detention charges in relation to container transport / clearing in the import/export of some goods/raw materials. Also, the value of the items that are being held may shift due in part to the hoarding. Generally these charges are common in container transport / freight and it is advisable to associate such expenses with the respective operation. Your are not logged in . Whether the seller or the buyer pays freight charges determines how freight charges are recorded in accounting. satish kumar The demurrage acts as a natural deterrent from these situations. It is charged to Profit & Loss Account. When it is used in reference to commodities such as gold, it is the cost of storing the gold. Accounting treatment of demurrage charges This query is : Resolved Report Abuse Follow Query Ask a Query. It is a fixed percentage rate that is tacked onto the security and storage fees. Privacy: Your email address will only be used for sending these notifications. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. Now that he has reentered this money into the economy, it is earning him a return on his investment. These fees are generally periodic and can happen anywhere from hourly to annually, for longer term storage. As per the guidance Not by ICAI, Demurrage and penalties are abnormal cost and are not part of the material cost. A single entity holding large sums of cash or gold will not have any positive impact on the surrounding economy. Thanks. Managers need to understand accounting for freight charges in order to make accurate financial projections and ongoing business decisions. but my question is where? Generally these charges are common in container transport / freight and it is advisable to associate such expenses with the respective operation. how should be treatment for Demurrage and Detention charges as per IAS2. You can do this instead of adding them to the capital cost of your building.

Sharpe also turns a profit since he is no longer paying fees for a depreciating commodity. As per my view it should not be capitalised but I want to know a reference Para no of AS/ AS Interpretation, any guidance note or any other statutory requirement. To avoid this verification in future, please. However, the value of silver is declining, and Sharpe does not feel that it is worth the fee to keep holding onto the silver, so he sells it. The objective of a demurrage is to prevent people from holding onto currencies and commodities for long periods of time without reintroducing them back into the economy. (glidor@gmail.com) should it be part of COGS or in the other losses or in G&A?

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