Day: February 16, 2021

 INTRODUCTION International Public Sector Accounting Standards (IPSASs) Recent years have seen ongoing efforts to codify a set of accounting standards that can be applied specifically to the public sector. Most of these have focused on variations of private sector accounting Read More …

GENERAL A manufacturing account is prepared in addition to the trading and profit and loss accounts.  It is produced for internal use, mainly for the owners and managers of organisations. DIVISION OF COSTS Costs in a manufacturing business are divided Read More …

GENERAL Accounting ratios provide a useful basis on which to review a company’s performance from its accounts.  The essence of the approach is to measure company performance by a criterion, which takes account of the profit generated by the company, Read More …

OBJECTIVE The objective of IAS 7 is to require an entity to provide information about the historical changes in cash and cash equivalents by means of a cash flow statement.  Cash flows are classified into: Operating Activities Investing Activities Financing Read More …

INCOME AND EXPENDITURE ACCOUNTS INTRODUCTION Clubs, societies, credit unions and other non-profit organisations do not draw up Statement of Comprehensive Income s; instead they prepare an INCOME AND EXPENDITURE ACCOUNT. Where income is greater than expenditure the excess is referred Read More …

INTRODUCTION The following is a checklist of frequent adjustments. Students should ensure that they understand fully the treatment of each one: Depreciation of Non-Current Assets, Write off of Bad Debts Change to Bad Debt Provision Dividend to Preference Shareholders Debenture Read More …

INTRODUCTION – STATEMENT OF COMPREHENSIVE INCOME In England  in 1897 the House of Lords ruled in the case, Salomon V Salomon & Co. Ltd,  that a company is a separate legal entity from its owners.    The owners’ liability to the Read More …

PREPARING FINANCIAL STATEMENTS FOR DIFFERENT FORMS OF BUSINESS ENTITY There are a number of different forms of business entity.  These are: Sole-trader e.g. shop-keeper Companies, limited by shares or by guarantee Companies, unlimited A number of substantial differences exist between Read More …

 OBJECTIVE IAS 40 sets out the accounting treatment and the disclosure requirements for Investment Properties.   DEFINITION An investment property (land/buildings) is held to earn rentals or for capital appreciation or both rather than for use in the production or Read More …

OBJECTIVE IAS 38 sets out the accounting treatment to be followed for Intangibles in so far as not covered by other International Accounting Standards. The standard lays down the criteria to be met before an entity recognises an Intangible asset. Read More …