Day: February 17, 2021

INTRODUCTION IAS 1 (Revised) was published in September 2007. It introduced a number of changes, the main ones being as follows: The titles of the main financial statements were amended to Statement of Changes in Position, Statement of Comprehensive Income Read More …

STRUCTURE OF THE IASC FOUNDATION  In 1999, in a move that reflected the growing importance of international accounting standards, the board of the International Accounting Standards Board (IASB) recommended and later adopted a new constitution and structure. As a result, Read More …

COST ACCOUNTING SYSTEMS  The Principle of Double Entry In some businesses, the cost accounts may consist of little more than statistical memoranda, but in a business of any size or complexity, it is preferable for the cost accounts to be Read More …

FUNCTIONAL BUDGETS  Sample Data VT Ltd produces two products – X and Y.  The products pass through two departments – Department 1 and Department 2.  The following standards have been prepared for direct materials and direct wages: Sales Budget The Read More …

DEFINITIONS  Budget (A plan in money) A budget is defined as: “A plan quantified in monetary terms, prepared and approved prior to a defined period of time, usually showing planned income to be generated and/or expenditure to be incurred during Read More …

INTRODUCTION  Planning and Control One of the principal objects of any management accounting system should be to assist in the planning and control of operations.  The techniques of budgetary control and standard costing can help management carry out this vital Read More …

INTRODUCTION Accountants have an important role in the preparation of relevant data for decision making purposes. For decision making purposes information is required which is relevant to the particular decision under consideration.  In all decisions there must be a “status Read More …

BREAK-EVEN ANALYSIS For any business there is a certain level of sales at which there is neither a profit nor a loss, i.e. the total income and the total costs are equal.  This point is known as the break-even point.  Read More …

INTRODUCTION In previous study units we have considered only costing systems that arrange for all costs to be included in or absorbed into individual costs, i.e. absorption costing.  This approach aims at identifying the total cost of an activity or Read More …

OPERATING COSTING  The Method Described Those organisations which provide a service to their customers use this method to establish the costs of their service.  The service is regarded in the same way as the process is regarded in process costing Read More …