Day: February 17, 2021

BRANCH ACCOUNTS Introduction As an organisation increases in size or where an organisation intends diversifying, the company structure will often change.  The resultant change will depend on the management policy and available funds.  Expansion may be by establishing a system Read More …

PURCHASE OF OWN SHARES If purchased shares are cancelled, the purchase must be financed by a fresh issue of shares, thus ensuring that share capital is maintained, or by the transfer from distributable profits to a capital redemption reserve fund Read More …

INTRODUCTION Large companies can often operate within several different business sectors and/or in different geographical locations. Each of these sectors/locations can involve risks and opportunities that can differ significantly from each other. For example, while an entity’s toy division might Read More …

INTRODUCTION Agriculture is fundamentally different from other types of business.  Instead of wearing out or being consumed over time, many agricultural assets actually grow. It can be argued that depreciation is irrelevant in this situation. Hence, biological assets are measured Read More …

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 and liquidity. The 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 users and 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 …

IAS 32 – FINANCIAL INSTRUMENTS: PRESENTATION The objective of IAS 32 is ‘to enhance financial statement users’ understanding of the significance of on Statement of Financial Position and off Statement of Financial Position financial instruments to an entity’s financial position, 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 …