Day: February 22, 2021

A portfolio is a collection of assets such as stocks, bonds, real estate, etc. The return to a portfolio of assets is an average return of all of the assets, weighted by the relative amount invested in each asset. However, Read More …

  ANSWER 1 (a) Limitations of utility analysis – It is difficult to specify the utility function for a group of individuals who have different risk attitudes. – In reality, utility is not measurable in numerical terms as assumed by Read More …

QUESTION 21  Benefits that would accrue to a decentralized organization operating a transfer pricing system Goal congruence- focuses on improving performance of the whole organisation as opposed to divisions Can prevent dysfunctional decision making so that decisions made by various managers Read More …

QUESTION 11  Cost estimation methods Account analysis This estimates cost functions by classifying cost accounts in the subsidiary ledger as variable, fixed or mixed with respect to the identified level of activity. Typically, managers use qualitative rather than quantitative analysis Read More …

QUESTION 1  Skills of a management accountant Knowledge about various branches of study such as financial accounting, cost accounting, and economics among others as management accounting embraces all these fields of study. Knowledge of business forecast under anticipated changing environment Read More …

The objective of this IFRS is to ensure that an entity’s first IFRS financial statements, and its 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 …

Framework for the Preparation and Presentation of Financial Statements The IASB Framework was approved by the IASC Board in April 1989 for publication in July 1989, and adopted by the IASB in April 2001. This Framework sets out the concepts Read More …

QUESTION 1  In February 2007, the International Accounting Standing Board ( IASB) published for comment an exposure draft of a proposed International Financial Reporting Standard (IFRS) for small and Medium Enterprises( SMEs). Required:  Outline three benefits that SMEs will derive Read More …

QUESTION 4 In the context of International Accounting Standard (1AS) 21, distinguish between the accounting treatment for foreign currency transactions “on initial recognition” and “at the end of subsequent reporting periods”. On initial recognition, a foreign currency transaction is recorded Read More …

QUESTION 3 International Accounting Standard (IAS) 28, Investment in Associates prescribes the use of the equity method of accounting for investments in associates over which the investor has significant influence. Required: Describe the term “significant influence” in the context of Read More …