Month: February 2021

OBJECTIVE The objective of IAS 24 Related Party Disclosures is to ensure that an entity’s financial statements contain sufficient disclosures to highlight the possibility that the entity’s financial position and / or performance may have been affected by: The existence Read More …

INTRODUCTION IAS 19 outlines the accounting treatment of various benefits provided to employees by the employer.  All benefits provided to employees, whether long-term or short-term in nature, must be accounted for to ensure that the financial statements of the entity Read More …

PURCHASE OF OWN SHARES Where a limited company is permitted  to purchase its own shares it must either cancel them or sell them within 2 years If the purchased shares are cancelled, the purchase must be financed by a fresh Read More …

INTRODUCTION Large companies can often operate within several different business sectors and/or in different geographical locations. Each of these sectors/locations can involve risks and opportunities that can differ significantly from each other. For example, while an entity’s toy division might Read More …

INTRODUCTION Agriculture is fundamentally different from other types of business.  Instead of wearing out or being consumed over time, many agricultural assets actually grow. It can be argued that depreciation is irrelevant in this situation. Hence, biological assets are measured Read More …

     INTRODUCTION   IAS 34 recognises the usefulness of timely and reliable interim financial reporting in improving the ability of investors, creditors and others to understand an entity’s capacity to generate earnings and cash flows and its financial condition Read More …

      INTRODUCTION IFRS 1 was issued to ensure that an entity’s first IFRS financial statements, and any interim financial reports for part of the period covered by those financial statements, contain high quality information that: Is transparent for Read More …

INTRODUCTION The ability to comprehend, assess, interpret and criticise the financial statements and related information of different businesses is the quality above all others, which distinguishes the accountant from the bookkeeper.  Complete mastery of accounts can be gained only as Read More …

AS 32 – FINANCIAL INSTRUMENTS: PRESENTATION  The objective of IAS 32 is ‘to enhance financial statement users’ understanding of the significance of on balance sheet and off balance sheet financial instruments to an entities financial position, performance and cashflows’   Read More …

THE TIMING OF REVENUE RECOGNITION The operating cycle refers to the time between the acquisition of assets for processing and their realisation in cash.  Typically, this cycle has a number of stages for a business.  For example: Receiving an order Read More …