Category
📚
LearningTranscript
00:00No, tell me, I don't want to know anything about the collection.
00:04Sir, if you do this, it will be a sales proceed and not a profit.
00:09Sales proceeds?
00:11Yes, sir.
00:12Is it written here?
00:13It is written that if it is existing or antique, then it will be taken care of.
00:20Hmm?
00:21Sir, if it is existing or antique, then it will be taken care of.
00:24Then why did you ask me this question that it will be a profit trade?
00:28Sir, if it is existing or antique, then it will be taken care of.
00:33If you have sold an antique, then what should you do with the revenue from the antique?
00:38You should use it for the protection of other antiques.
00:41Then what will you do with its entry?
00:43You cannot write its income immediately.
00:46You will use it for the protection of other antiques.
00:49So, if you sell it, will you get cash?
00:52And what will you do with the fair value of the collected asset?
00:57You will credit it.
00:59Right.
01:01But if we had recorded the collections at a fair value of Rs. 10 and BKF at Rs. 12,
01:08then the extra Rs. 2 should be recorded as a gain.
01:14It should be recorded as a gain.
01:16But you cannot utilize the entire cash.
01:21There is a restriction on the usage of cash.
01:23You should not use cash for any other purpose.
01:26You should use it for the protection of collections.
01:28If you have sold something worth Rs. 10 at Rs. 12,
01:30cash debit at Rs. 12,
01:31asset credit at Rs. 10,
01:32what is Rs. 200?
01:33It is a gain.
01:34Rs. 2 is a gain.
01:35So, we will have to report it as a gain.
01:37Right, friends?
01:38There is a restriction on the use of cash.
01:41If there is a gain or loss in profit, then we will recognize it.
01:44Does anyone have a question?
01:46Okay.
01:48The next problem we have is of PPE.
01:53Property, Plant and Equipment.
01:57By the way, what is the definition of Property, Plant and Equipment since childhood?
02:05This is a not-for-profit organization.
02:07They have their own accounting standards.
02:10They will not treat everything on the basis of IFRS.
02:14That is why we are reading the difference.
02:16The standard says that it should be written in the lower of cost manner.
02:19But, here we are talking about something else.
02:21So, we will treat everything on the basis of NPO.
02:24What do we have next?
02:26PPE.
02:27By the way, does anyone know the definition of PPE since childhood?
02:34There is only one writing.
02:38The first thing is that the definition of an asset has been fulfilled.
02:41An asset is a resource
02:43controlled by the entity
02:45from which future economic benefits are expected to flow to the entity.
02:48The definition of an asset has been fulfilled.
02:50The second thing is that it should be held for use.
02:53And that use can be for administrative purposes,
02:56production purposes,
02:57rental to others purposes.
02:59These are the three objectives.
03:01We have read this.
03:02The third important thing is that
03:04cost can be measured reliably.
03:07What can you do for cost?
03:09This is the definition of IAS 16.
03:13Now, what is the problem?
03:15NPO.
03:16When will we classify PPE in NPO?
03:19First of all, it is necessary
03:21that you are using it in your core functions.
03:25Am I right?
03:26You are using it in your core functions.
03:29For administration purposes or for production purposes.
03:32This is almost the same as IAS 16.
03:34That you are using it in your core functions.
03:37Secondly, it should be long term use.
03:39It should be more than one year.
03:40Extended period of time.
03:41This is also the same.
03:42Thirdly, it should not be hand for sale.
03:45This is also the same.
03:46PPE is not hand for sale.
03:49And fourthly,
03:50this must not be part of collections.
03:53As I said about collections.
03:55What do we do with PPE for collections?
03:58Collections are not used.
04:00But the same asset will go in PPE
04:02which is in your use.
04:04The basic definition is going to be understood.
04:06Only one small thing is different.
04:08This is separate from collections.
04:10Because this is also given to you by people.
04:12Collections are also given by people.
04:13So, what will be used in your business
04:15will not be used in PPE.
04:17It is an antique item.
04:18Take it in collections.
04:20Is the point clear?
04:21Should I write it on the board?
04:22Yes.
04:23It is clear.
04:24Same definition.
04:25Next, it is written that
04:26the PPE which has been donated to you.
04:29What values do they have to be recorded?
04:35Okay, brother.
04:36If PPE has been donated to you,
04:39then you have to record it on a fair value.
04:43As we just read about inventories.
04:45If you have got it,
04:46then on what will you record it?
04:48Record it on a fair value.
04:50And if a fair value of any asset is not available,
04:53then on what will you record it?
04:56Then on nominal value.
05:00This is also in that.
05:02What is the grant value?
05:0320, right?
05:05I always mix it up.
05:0620, 40.
05:07I don't remember the name.
05:09If I don't remember this,
05:10then I always say,
05:11I will remember it.
05:1220, 40.
05:13I mix it up.
05:15I mix it up.
05:16IFRS 15 and 16.
05:19There is one revenue and one lease.
05:21I don't remember which is the revenue
05:23and which is the lease.
05:24I mix it up.
05:26Which is 20?
05:27Government grant?
05:28In government grant,
05:29you can get any asset.
05:32I read it
05:33that if the government gives you an asset,
05:35then it is recorded on its fair value.
05:37And if the fair value is not available,
05:39then on what will you record it?
05:40Now tell me,
05:41what is nominal value?
05:42Will you tell me?
05:44Okay.
05:45Your answer is repeated.
05:47Will you tell me the nominal value?
05:48You have read 20, right?
05:52Have you read IAS 20?
05:54Tell me the nominal value.
05:57What?
05:58Par value.
06:01Par value.
06:03You have accepted it.
06:04You have accepted the concept.
06:19Nominal value.
06:21Doesn't matter.
06:23The one who speaks wrongly
06:24and learns right,
06:25he is a bad person.
06:27Average value.
06:28Today if someone
06:29donates this building
06:30to your NPO,
06:33how do you calculate
06:34its average value?
06:38And tell me,
06:39how do you calculate
06:40the par value of the building?
06:41What is par value?
06:42Market value.
06:43Market value?
06:44No.
06:45It is a newspaper.
06:48If someone asks you
06:49about religion,
06:50and you say,
06:51I don't know,
06:52then this is half knowledge.
06:55You are half knowledge.
06:58Denying is half knowledge.
07:00It is ignorance
07:01to establish your own opinion.
07:03And if there is no such thing
07:04in religion,
07:05and you relate it
07:06to the Prophet of Allah,
07:07then you are in disbelief.
07:10If someone asks you
07:11about religion,
07:12about Hadith,
07:13and you don't know,
07:14then directly deny it.
07:15I don't know,
07:16ask Mufti sahab.
07:22Give me 100 rupees.
07:25In class,
07:26if a Hindu or Christian
07:27says,
07:28in the name of Allah,
07:29they have denied it,
07:30then there will be justice.
07:31Give me 100 rupees.
07:34What message
07:35will you give
07:36to a Hindu or Christian?
07:37That if our name
07:38was mentioned there,
07:41then we would be
07:42punished,
07:43and there would be
07:44justice here.
07:45Viewers,
07:46let's move forward.
07:47What were you reading
07:48in Nawaam ki Purdur?
07:49I was telling you
07:50something before that.
07:52What?
07:53If you don't know,
07:54then why are you
07:55making the concept
07:56big?
07:57Power value.
07:59Power value is
08:00used in shares,
08:01face value.
08:02Yes,
08:03you can say that
08:04the power value
08:05is the face value
08:06of the share.
08:07This is also called
08:08nominal value.
08:09This is not that
08:10nominal value.
08:11This is the same thing
08:12as we read in it,
08:13turnover.
08:14One is our
08:15inventory turnover ratio.
08:16It means
08:17how many days
08:18the inventory
08:19will change in CGS.
08:20And the second is
08:22asset turnover.
08:23There it means
08:24how many sales
08:25you will produce
08:26from these assets.
08:27There is only
08:28one word,
08:29good.
08:30Now Hafiz
08:31has gone to his
08:32roommate
08:33and asked him
08:34to get him
08:35some water.
08:36And you
08:37have gone to
08:38your other
08:39roommate
08:40and asked him
08:41to get you
08:42some water.
08:43We keep
08:44writing love
08:45and he
08:46keeps
08:47reading love.
08:48We keep
08:49writing love
08:50and he
08:51keeps
08:52reading love.
08:53We keep
08:54writing love
08:55and he
08:56keeps
08:57reading love.
08:58One point
08:59has made
09:00Mehran
09:01a criminal.
09:02Now we
09:03have changed
09:04it a little.
09:05We keep
09:06writing love
09:07and he
09:08keeps
09:09reading love.
09:10One point
09:11has made
09:12all love
09:13a salad.
09:14One point
09:15has made
09:16all love
09:17a salad.
09:18One point
09:19has made
09:20all love
09:21a salad.
09:22Now
09:23we
09:24have to
09:25make
09:26nominal
09:27value.
09:28We
09:29have to
09:30make
09:31nominal
09:32value.
09:33We
09:34have to
09:35make
09:36nominal
09:37value.
09:38We
09:39have to
09:40make
09:41nominal
09:42value.
09:43We
09:44have to
09:45make
09:46nominal
09:47value.
09:48We
09:49have to
09:50make
09:51nominal
09:52value.
09:53We
09:54have to
09:55make
09:56nominal
09:57value.
09:58We
09:59have to
10:00make
10:01nominal
10:02value.
10:03We
10:04have to
10:05make
10:06nominal
10:07value.
10:08We
10:09have to
10:10make
10:11nominal
10:12value.
10:13We
10:14have to
10:15make
10:16nominal
10:17value.
10:45We
10:46have to
10:47make
10:48nominal
10:49value.
10:50We
10:51have to
10:52make
10:53nominal
10:54value.
10:55We
10:56have to
10:57make
10:58nominal
10:59value.
11:00We
11:01have to
11:02make
11:03nominal
11:04value.
11:05We
11:06have to
11:07make
11:08nominal
11:09value.
11:10We
11:11have to
11:12make
11:13nominal
11:14value.
11:15We
11:16have to
11:17make
11:18nominal
11:19value.
11:20We
11:21have to
11:22make
11:23nominal
11:24value.
11:25We
11:26have to
11:27make
11:28nominal
11:29value.
11:30We
11:31have to
11:32make
11:33nominal
11:34value.
11:35In
11:36terms of
11:37my
11:38impersonation,
11:39I
11:40have both
11:41come in
11:42two
11:43So, what is the point of giving nominal value? It must be recorded and it must be presented
11:48in the financial statements, so that you can trace the items, that we have this item too.
11:53Do not eat it again and again and do not know that it did not come in the SOFP.
11:57So, here it is saying that if a person donates PPE, if he knows the fair value, then on what
12:03will he write? On the fair value. And if the fair value is uncertain, then on what will
12:07he write? So, this can be a symbolic amount.
12:11So, he was using the symbolic amount, so that it is present in the books.
12:15Does anyone have any objection?
12:21Next question. If you go to buy PPE, you go and tell that our organization, EDA Shobhat
12:29Khana, we need a van for delivery. We have to move things and tests etc. in different
12:36cities. So, we need a van. He said, you are doing a very good job. So, we will give you
12:42the van at half price. So, we will also get the reward. Now, the fair value is 10 lakhs.
12:48And how much is the van getting? 5 lakhs. So, on what will you record it?
12:55We will record it on the fair value. Now, what will be the entry? Van debit is 10 rupees.
13:07But you have given 5 rupees. Cash credit is 5 rupees. Where will the remaining 5 rupees
13:11go? Discount?
13:15It will not be a discount, son. This will be the contribution. And what is contribution?
13:22Income. So, income will be credited in the name of contribution. So, what will be the
13:26entry? Do it quickly. Van debit is 10 rupees. Cash credit is 5 rupees. And contribution
13:32credit is 5 rupees. And in the bracket of contribution, we will write income and expenditure.
13:36Write it on the board. Clear? Okay. Does anyone have any objection?
13:52The next problem is that if you are given a government grant in the environment of
14:04NPO to buy PPE. Yes, in IAS 20, we have two options. What can we do with that grant?
14:21We can make it less than the cost of the asset or we can also recognize it as deferred income.
14:31What can we do with it? We can make it less than the cost of the asset or we can treat
14:39it as deferred income. What is written here? It says, a tangible movable capital asset
14:46or grant may be recognized at carrying amount deducting the grant. The grant is recognized
14:52in the profit and loss over the life of the depreciable asset as a reduced depreciation
14:58expense. If it is a grant for specified period and the asset has to be returned at the end
15:04of the grant period, the asset shall be valued at fair value, less present value of estimated
15:10amount at the time of grant contribution.
15:41What can we do with it? We can make it less than the cost of the asset or we can recognize
15:47it as deferred income. What is written here? It says, a tangible movable capital asset
15:51or grant may be recognized at carrying amount deducting the grant. The grant is recognized
15:55in the profit and loss over the life of the depreciable asset as a reduced depreciation
15:59expense. What is written here? It says, a tangible movable capital asset or grant may
16:03be recognized at carrying amount deducting the grant. The grant is recognized in the
16:07profit and loss over the life of the depreciable asset.
16:09What is written here? It says, a tangible movable capital asset or grant may be recognized
16:13at carrying amount deducting the grant. The grant is recognized in the profit and loss
16:17over the life of the depreciable asset. What is written here? It says, a tangible movable
16:21capital asset or grant may be recognized at carrying amount deducting the grant. The
16:25grant is recognized in the profit and loss over the life of the depreciable asset.
16:29What is written here? It says, a tangible movable capital asset or grant may be recognized
16:33at carrying amount deducting the grant. The grant is recognized in the profit and
16:37loss over the life of the depreciable asset.
17:03What is written here? It says, a tangible movable capital asset or grant may be recognized
17:07at carrying amount deducting the grant. The grant is recognized in the profit and loss
17:11over the life of the depreciable asset. What is written here? It says, a tangible movable
17:15capital asset or grant may be recognized at carrying amount deducting the grant. The
17:19grant is recognized in the profit and loss over the life of the depreciable asset.
17:23What is written here? It says, a tangible movable capital asset or grant may be recognized
17:27at carrying amount deducting the grant. The grant is recognized in the profit and loss
17:31over the life of the depreciable asset.
18:01What is written here? It says, a tangible movable capital asset or grant may be recognized
18:05at carrying amount deducting the grant. The grant is recognized in the profit and loss
18:09over the life of the depreciable asset. What is written here? It says, a tangible movable
18:13capital asset or grant may be recognized at carrying amount deducting the grant. The grant
18:17is recognized in the profit and loss over the life of the depreciable asset.
18:21What is written here? It says, a tangible movable capital asset or grant may be recognized
18:25at carrying amount deducting the grant. The grant is recognized in the profit and loss
18:29over the life of the depreciable asset.
18:59What is written here? It says, a tangible movable capital asset or grant may be recognized
19:03at carrying amount deducting the grant. The grant is recognized in the profit and loss
19:07over the life of the depreciable asset. What is written here? It says, a tangible movable
19:11capital asset or grant may be recognized at carrying amount deducting the grant. The grant
19:15is recognized in the profit and loss over the life of the depreciable asset.
19:19What is written here? It says, a tangible movable capital asset or grant may be recognized
19:23at carrying amount deducting the grant. The grant is recognized in the profit and loss
19:27over the life of the depreciable asset.
19:57If it is a grant for a specified period and the asset has to be returned at the end of
20:01the grant period, assets shall be valued at their value less present value of estimated
20:05residual value at the time of grant contribution.
20:27What is written here? It says, a tangible movable capital asset or grant may be recognized
20:31at carrying amount deducting the grant. The grant is recognized in the profit and loss
20:35over the life of the depreciable asset.
20:39What is written here? It says, a tangible movable capital asset or grant may be recognized
20:43at carrying amount deducting the grant. The grant is recognized in the profit and loss
20:47over the life of the depreciable asset.
20:51What is written here? It says, a tangible movable capital asset or grant may be recognized
20:55at carrying amount deducting the grant. The grant is recognized in the profit and loss
20:59over the life of the depreciable asset.
21:25What is written here? It says, a tangible movable capital asset or grant may be recognized
21:29at carrying amount deducting the grant. The grant is recognized in the profit and loss
21:33over the life of the depreciable asset.
21:37What is written here? It says, a tangible movable capital asset or grant may be recognized
21:41at carrying amount deducting the grant. The grant is recognized in the profit and loss
21:45over the life of the depreciable asset.
21:49What is written here? It says, a tangible movable capital asset or grant may be recognized
21:53at carrying amount deducting the grant.
21:57What is written here? It says, a tangible movable capital asset or grant may be recognized
22:01at carrying amount deducting the grant.
22:05What is written here? It says, a tangible movable capital asset or grant may be recognized
22:09at carrying amount deducting the grant.
22:13What is written here? It says, a tangible movable capital asset or grant may be recognized
22:17at carrying amount deducting the grant.
22:21Now keep all these things in mind and become good students and read this.
22:25So that conceptually all these things can be recalled.
22:29If you miss a single line, don't read it and ask again.