• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. 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. You can register with your email or with facebook login few seconds

Get AccountantAnswer App

Please let me know relavant IAS for Prepaid Expenses under IFRS


Please let me know relavant IAS for Prepaid Expenses under IFRS

asked Nov 1, 2016 in General IFRS Discussion by Madhu.H.R

A prepaid expense is an expenditure paid for in one accounting period, but for which the underlying asset will not be consumed until a future period. When the asset is eventually consumed, it is charged to expense. If consumed over multiple periods, there may be a series of corresponding charges to expense.

There is no standard for prepaid Expense

But

Classifying transactions into asset and liability group, under the IAS 1

1 Answer

0 votes
 
Best answer

IAS 1 states classification of assets and liabilities. A prepaid expense is carried on the balance sheet of an organization as a current asset until it is consumed Prepaid Expenses are assets created by the prepayment of cash or incurrence of a liability. Prepaid expenses expire and become expenses with the passage of time, use, or events, for example: prepaid rent, prepaid insurance and deferred taxes.

answered Dec 7, 2016 by Shivangi
selected Dec 8, 2016 by umar1621


...