Day: February 17, 2021

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 …

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 …

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 enable Read More …

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 …

 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 Read More …

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     Read More …

INTRODUCTION  Leasing represents a very common and important method of acquiring non-current assets.  A lease can offer very significant cash flow advantages, as the payment of the full cost of an asset on acquisition is avoided. Under a lease agreement, Read More …

INTRODUCTION IAS 20 sets out the accounting procedures to be followed when dealing with government grants.  It also outlines the disclosure requirements necessary upon receipt of such grants. The standard recognises that government assistance can come in a variety of Read More …

DEFINITION Borrowing costs are interest and other costs incurred by an entity in connection with the borrowing of funds.  They may include, for example: Interest on bank overdrafts, short-term and long-term loans Amortisation of discounts or premiums related to borrowing Read More …

OBJECTIVE The objective of IAS 16 is to prescribe the accounting treatment for property, plant and equipment, so that users of the financial statements can understand the nature of the entities investment in such assets and any changes that have Read More …