Month: February 2021

INTRODUCTION The following is a checklist of frequent adjustments. Students should ensure that they understand fully the treatment of each one: Depreciation of Non-Current Assets, Write off of Bad Debts Change to Bad Debt Provision Dividend to Preference Shareholders Debenture Read More …

INTRODUCTION – STATEMENT OF COMPREHENSIVE INCOME In England  in 1897 the House of Lords ruled in the case, Salomon V Salomon & Co. Ltd,  that a company is a separate legal entity from its owners.    The owners’ liability to the Read More …

PREPARING FINANCIAL STATEMENTS FOR DIFFERENT FORMS OF BUSINESS ENTITY There are a number of different forms of business entity.  These are: Sole-trader e.g. shop-keeper Companies, limited by shares or by guarantee Companies, unlimited A number of substantial differences exist between Read More …

 OBJECTIVE IAS 40 sets out the accounting treatment and the disclosure requirements for Investment Properties.   DEFINITION An investment property (land/buildings) is held to earn rentals or for capital appreciation or both rather than for use in the production or Read More …

OBJECTIVE IAS 38 sets out the accounting treatment to be followed for Intangibles in so far as not covered by other International Accounting Standards. The standard lays down the criteria to be met before an entity recognises an Intangible asset. Read More …

OBJECTIVE The objective of this standard is to ensure that the appropriate recognition rules and measurement bases are applied to provisions, contingent liabilities and contingent assets. The standard also sets out the disclosure to be made to ensure that sufficient Read More …

OBJECTIVE The objective of IAS 20 is to set out the accounting treatment for both government grants and other forms of government assistance. Government assistance takes many forms, including grants, equity finance, subsidised loans and advisory assistance.  Government grants are Read More …

OBJECTIVE The objective of this standard is to provide assistance in determining when to recognise revenue. It should be recognised when it is probable that economic benefits that can be measured reliably have accrued to the entity.  IAS 18 Revenue Read More …

OBJECTIVE The Objective of IAS 16 is to set out the accounting treatment for Property, Plant and Equipment. The main areas dealt with in the standard are: Recognition of non-current assets(fixed assets), Determination of the carrying amount, Determination of the Read More …

OBJECTIVE The objective of this standard is to set out the circumstances in which an entity should adjust its financial statements for events that occur after the Balance Sheet Date but before the Financial Statements are approved by the Board Read More …