Day: February 17, 2021

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 be 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 …

We’re pleased to bring you advanced public finance and taxation revision kit which covers 2015 to 2020 past papers. This book costs Ksh. 500 and is available in hard copy only To get complete copy, Call | Text | WhatsApp 0728 776 317 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. The 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 Investing Read More …

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 …

NON-CONTROLLING INTEREST  If there is a Non-Controlling Interest in a subsidiary, give them their share of the profit after tax of the subsidiary. The Non-Controlling Interest is shown below the consolidated Statement of Comprehensive Income, alongside the share of profit Read More …

INVESTMENTS IN ASSOCIATES AND INTERESTS IN JOINT VENTURES Associates Sometimes the investment in another entity is not enough to give it control, but such is the amount of voting power acquired that the investor exercises significant influence over the investee. Read More …

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 …

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 in Read More …