Beruflich Dokumente
Kultur Dokumente
IFR
S
Issue
Description
Required Action
IAS
16
Free Of
Charge assets
M
/
O
M
E & Y Required
Action
To
includ
e in
WP
E&Y to provide
financial
advice thereon
for all existing
scenarios i.e.
Assets
Exchange
Assets
dependency
etc. as per
IFRS..
YES
IFR
S
Issue
IAS
16
IAS
16
Opening
Balances
Fixed Assets
Costs of site
preparation
Description
Land & building and
plant & equipment
transferred from
Telecom Division to
STC in 1998 were
recognized at fair
value. Accounting for
the same needs to be
evaluated whether
the same was in line
with the IFRS
requirements - Was it
a business
Combination or
contribution of assets
by shareholders?
Costs of site
preparation (soft
costs) such as rent
and security costs
incurred during
Required Action
M
/
O
E & Y Required
Action
To
includ
e in
WP
YES
Further
guidance is
needed to
determine
what type of
YES
construction of tower
sites are considered
to be directly
attributable, and
hence may be
included in cost at
initial recognition.
Cost of dismantling
and restoration of
sites is not
capitalized currently.
FA to identify the
possible criteria to
depict cost of
dismantling and
restoration with
related parties e.g NW
The treatment of this
provision should be
clarified
Is this will applied to
existing asset or only
new assets!?
The discount rate
IAS
16
Dismantling
and
Restoration
Cost
IAS
16
IFR
S
Major
inspection
6cost
Issue
Major inspection
cost is recognized in
the carrying amount
of the item of PPE as
a replacement if the
recognition criteria
are satisfied. Any
remaining carrying
amount of the cost of
the previous
inspection is derecognized.
Description
site
preparation
costs need to
be capitalized
in case of STC.
Could be
covered as
part of
Technical
Paper
Guidance
needed on how
to estimate the
cost.
EY to provide if
any exception
as First Time
Adoption of
IFRS.
YES
NO
Needs more
clarification Regarding
the relevance to
telecom Industry ;
however inspection cost
is capitalized when
incurred during
installation of the
asset.
Required Action
M
/
O
E&Y
Required
Action
To
includ
e in
WP
6
IAS
16
Reassessment
of useful life
& Residual
value
Reassessment of
useful life, residual
value and
depreciation method
Further
Guidance
needed.
YES
IFR
S
Issue
Description
7
IAS
38
IAS
16
Independent
Software
Assets
Assets
componentiza
tion
Intangible assets in
FAR which is software
should be reclassified
to intangible assets.
Components of an
asset with differing
patterns of benefits
must be depreciated
separately
Required Action
Intangible assets in FAR
which is software
should be identified,
studied and clear road
map should be
designed to resolve this
issue.
STC already explained
how we are capitalizing
the Assets along with
the details of one PO
for detailed
understanding.
M
/
O
E & Y Required
Action
To
includ
e in
WP
NO
EY to provide
advice on
STC's
compliance
status
regarding
componentizati
on based on
NO
the feedback
provided by
engineers and
PO
9
IAS
16
Spare Parts
1
0
IAS
16
SelfConstructed
Assets
1
1
IAS
16
Fixed Assets
Disclosure
IFR
Issue
No assessment for
disclosures?
Disclosures might
need change in
software or
additional fields in
oracle
Description
NO
As confirmed by related
parties MM & NW ,STC
does not have any
major spare parts
having a life of more
than 1 year therefore
all the spare parts are
expensed off at the
time of actual
consumption.
Also need to
include Labor
Treatment on
ISP like labor
cost incurred
during design
and planning
phase directly
related with
the Assets
creation.
NO
NO
Required Action
E & Y Required
Action
To
S
1
2
IFRI
C12
IFRIC 12,
concession
agreement
1
3
IAS
16
includ
e in
WP
/
O
Depreciation
on Idle Assets
NO
Stc has some contracts
with this nature and
need to involve
wholesale sector.
NO