INTRODUCTION The purpose of IAS 21The Effects of Changes in Foreign Exchange Rates is to outline the following issues: The definition of functional and presentation currencies Accounting for an entities individual transactions in a foreign currency Translation of the financial Read More …
Day: February 16, 2021
Consolidated Financial Statements 4
INTRODUCTION The purpose of the consolidated income statement is to present the results of the parent company and the subsidiary as if it were a combined/single entity. NON-CONTROLLING INTEREST If there is a Non-Controlling Interest in a subsidiary, Read More …
Consolidated Financial Statements Notes
INTRODUCTION An entity may expand by acquiring shares in other entities. Where one entity gains control over another entity, a parent-subsidiary relationship now exists between the two entities. Each will prepare their own individual financial statements, using the IFRS’s Read More …
Accounting Policies, Changes in Accounting Estimates and Errors
INTRODUCTION The Framework for the Preparation and Presentation of Financial Statements, published by the IASB, identifies “comparability” as one of the four qualitative characteristics of financial statements. The Framework recognises the importance of comparing both the financial statements of an Read More …
Events After The Reporting Period
OBJECTIVE It is a fundamental principle of accounting that all available information must be considered when preparing financial statements. This must include information on relevant events which occur right up to the date on which the financial statements are authorised Read More …
Provisions, Contingent Liabilities and Contingent Assets Notes
OBJECTIVE The objective of IAS 37 is to ensure that appropriate recognition criteria and measurement bases are applied to provisions, contingent liabilities and contingent assets and that sufficient information is disclosed in the notes to the financial statements to Read More …
Advanced Consolidated Statement of Financial Positions
INTRODUCTION Once the basic concept of consolidating accounts has been understood, the more complicated adjustments can be introduced. The adjustments involve a number of different scenarios, but a theme common to most of them is that they involve amounts that Read More …
INVENTORIES DEFINATION
OBJECTIVE IAS 2 sets out the accounting treatment for inventories. For many entities, closing inventory can be a highly significant figure and is used in the calculation of profit and also shown as a current asset in the Statement of Read More …
INTANGIBLE ASSETS NOTES
OBJECTIVE To outline the accounting treatment for intangible assets that are not dealt with specifically in another standard. EXCLUSIONS IAS 38 does not apply to: Intangible assets that are within the scope of another standard Financial assets, as defined Read More …
INVESTMENT PROPERTIES NOTES
OBJECTIVE To outline the accounting treatment for investment properties and the disclosure requirements. EXCLUSIONS The standard does not apply to: Biological assets related to agricultural activity Mineral rights and reserves DEFINITION Investment property is property (land or Read More …