Day: February 16, 2021

OBJECTIVE The objective of this standard is to ensure that the appropriate recognition rules and measurement bases are applied to provisions, contingent liabilities and contingent assets. The standard also sets out the disclosure to be made to ensure that sufficient Read More …

OBJECTIVE The objective of IAS 20 is to set out the accounting treatment for both government grants and other forms of government assistance. Government assistance takes many forms, including grants, equity finance, subsidised loans and advisory assistance.  Government grants are Read More …

OBJECTIVE The objective of this standard is to provide assistance in determining when to recognise revenue. It should be recognised when it is probable that economic benefits that can be measured reliably have accrued to the entity.  IAS 18 Revenue Read More …

OBJECTIVE The Objective of IAS 16 is to set out the accounting treatment for Property, Plant and Equipment. The main areas dealt with in the standard are: Recognition of non-current assets(fixed assets), Determination of the carrying amount, Determination of the Read More …

OBJECTIVE The objective of this standard is to set out the circumstances in which an entity should adjust its financial statements for events that occur after the Balance Sheet Date but before the Financial Statements are approved by the Board Read More …

INTRODUCTION The objectives of IAS 8 Accounting Policies, Changes in Estimate and Errors are: Set out the criteria for choosing and changing accounting policies and Accounting treatment and disclosure of changes in accounting policies, changes in accounting estimates and correction Read More …

INTRODUCTION  Introduction – Inventories An Inventory is a list, but as raw materials, work-in-progress and finished good are detailed on lists or inventories, the term inventories is now commonly used to mean the items on those lists. The calculation of Read More …

OBJECTIVE The objectives of IAS 1 are to: Provide the formats for the presentation of Financial Statements, such as Statement of Comprehensive Income and Statement of Financial Position. Ensure that the Financial Statements are comparable year on year for the Read More …

SUSPENSE ACCOUNTS A suspense account is a nominal ledger account which is created in two main situations: If the trial balance does not balance the difference is placed in a suspense account; and If the bookkeeper is unsure of the Read More …

THE CASH BOOK AND BANK RECONCILIATION STATEMENTS  The Cash Book – Introduction Cash transactions are the simplest and most universal form of business transaction. For example: A sells B some goods for RWF150. From A’s point of view, he has Read More …