Day: February 16, 2021

INTRODUCTION   Leasing represents a very common and important method of acquiring non-current assets.  A lease can offer very significant cash flow advantages, as the payment of the full cost of an asset on acquisition is avoided.   Under a Read More …

INTRODUCTION   IAS 20 sets out the accounting procedures to be followed when dealing with government grants.  It also outlines the disclosure requirements necessary upon receipt of such grants.   The standard recognises that government assistance can come in a Read More …

DEFINITION Borrowing costs are interest and other costs incurred by an entity in connection with the borrowing of funds.  They may include, for example: Interest on bank overdrafts, short-term and long-term loans Amortisation of discounts or premiums related to borrowing Read More …

INTRODUCTION There is a long-standing principle in financial accounting that an asset should not be shown at more than its recoverable amount in the financial statements. If the carrying value of the asset is greater than its recoverable amount, the Read More …

OBJECTIVE The objective of IAS 16 is to prescribe the accounting treatment for property, plant and equipment (PPE), so that users of the financial statements can understand the nature of the entities investment in such assets and any changes that Read More …

IAS 1 (Revised) was published in September 2007. It introduced a number of changes, the main ones being as follows: The titles of the main financial statements were amended to Statement of Changes in Position, Statement of Comprehensive Income and Read More …

STRUCTURE OF THE IASC FOUNDATION  In 1999, in a move that reflected the growing importance of international accounting standards, the board of the International Accounting Standards Board (IASB) recommended and later adopted a new constitution and structure.   As a Read More …

GROUP ACCOUNTING AND    THE    HOLDING COMPANY   AUDITORS The duty of the principal auditor is to report on the group accounts, which include balances and transactions of all the components of the group.   “Principal auditor” means the Read More …

SOCIAL AND ENVIRONMENT AUDITS In recent years there has been new legislation which has been implemented to deal with environmental issues.  This has placed additional burdens on companies to comply with the new legislation.  The danger of non-compliance brings the Read More …