Day: February 16, 2021

     INTRODUCTION   IAS 34 recognises the usefulness of timely and reliable interim financial reporting in improving the ability of investors, creditors and others to understand an entity’s capacity to generate earnings and cash flows and its financial condition Read More …

      INTRODUCTION IFRS 1 was issued to ensure that an entity’s first IFRS financial statements, and any interim financial reports for part of the period covered by those financial statements, contain high quality information that: Is transparent for Read More …

INTRODUCTION The ability to comprehend, assess, interpret and criticise the financial statements and related information of different businesses is the quality above all others, which distinguishes the accountant from the bookkeeper.  Complete mastery of accounts can be gained only as Read More …

AS 32 – FINANCIAL INSTRUMENTS: PRESENTATION  The objective of IAS 32 is ‘to enhance financial statement users’ understanding of the significance of on balance sheet and off balance sheet financial instruments to an entities financial position, performance and cashflows’   Read More …

THE TIMING OF REVENUE RECOGNITION The operating cycle refers to the time between the acquisition of assets for processing and their realisation in cash.  Typically, this cycle has a number of stages for a business.  For example: Receiving an order Read More …

 INTRODUCTION IAS 12 deals with the accounting treatment of tax liabilities. In this chapter, it is assumed that the tax liability for the period has already been computed, and the entity now must deal with the treatment of tax in Read More …

OBJECTIVE The objective of IFRS 5 is to outline: Accounting for assets classified as “Held-For-Sale”; and The presentation and disclosure of “Discontinued Operations”   IFRS 5 requires non-current assets and groups of assets (disposal groups”…see below) that are ‘Held-For-Sale’ to Read More …

EXPLANATORY NOTE The need for the disclosure of Earnings Per Share (EPS) is based on the increasing use of the Price/Earnings (P/E) ratio as a standard stock market indicator. The formula for the calculation of the P/E ratio is: Market Read More …

OBJECTIVE Construction contracts, by their nature, usually are completed over more than one accounting period.  Thus, the main issue addressed by IAS 11 is the allocation of the revenue and costs of the contract over this extended time period.   Read More …

OBJECTIVE   The objective of IAS 7 is to require the provision of information about the historical changes in cash and cash equivalents of an entity by means of a cash flow statement, which classifies cash flow into: Operating Activities Read More …