• Register
Search IFRS Questions / Answers




Welcome to IFRSanswer 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 IFRSanswer App

Forensic Accounting

What is the relevant IAS / IFRS for initial operation losses incurred by the company and its treatment.?


Could you please tell me how initial operating losses of company are treated in accordance with IFRS. Reference of IAS/IFRS  is required.

asked Oct 17, 2015 in General IFRS Discussion by anonymous

1 Answer

0 votes
Are you referring to per-operational costs? They have to be expenses as and when incurred as per IAS 38.69 "

"expenditure on start-up activities (ie start-up costs), unless this
expenditure is included in the cost of an item of property, plant and
equipment in accordance with IAS 16. Start-up costs may consist of
establishment costs such as legal and secretarial costs incurred in
establishing a legal entity, expenditure to open a new facility or business
(ie pre-opening costs) or expenditures for starting new operations or
launching new products or processes (ie pre-operating costs)."
answered Oct 17, 2015 by Mysio Level 5 Member (20,610 points)



...