Balance Sheet

It is said that a balance sheet is a snapshot of a company’s financial health. However, the snapshot becomes immaterial if meaningful information cannot be drawn from it. To maintain the fair representation of all information, many companies and enterprises use classified balance sheets. Classification of assets plays a pivotal role for a business when […]

Computer equipment is considered one of the most significant components of fixed asset items in an entity’s balance sheet. This kind of asset usually has more than twelve months and is classified as a non-current asset, initially recognized at cost and subsequently valued at cost less depreciation and impairment. The classification, measurement, and recognition of

Furniture and fittings are the number current that the company used for supporting its daily operation other than land, building, machinery, computer equipment, and other non-current. These noncurrent assets are recording in the company’s balance sheet at the end of the accounting period. It is valued at cost initially and subsequently value at cost less

What are Leasehold Improvements? Leasehold Improvements are defined as modifications made to a leased space or a leased asset to make it more suited to the specific needs of the given tenant. When a rental or a tenancy agreement is signed upon, there are several different components included. Leasehold improvements tend to be one of

The inventory is considered to be a hazardous item in the balance sheet. The risk even increases if the business operates in the manufacturing sector. The reason is that business operating in manufacturing segment is expected to have a greater quantity of raw material, work in process, and the finished goods.  A value measurement for

Definition of Fixed Assets: Fixed Assets are referred to property, plant, and equipment. These items are held and used in the production and supply of goods or services. Furthermore, this equipment has also been used to perform administrative tasks. In addition, the life of these fixed assets must be over a year in an accounting

The balance sheet contains many items, including assets owned by the business, liabilities to be paid by the business, and equity in the financing structures. The presentation of all these items on a single page help to understand the financial position of the business. Generally speaking, the balance sheet is an equation where assets equal

The assets held for sale are the non-current assets that the business intends to sell. In other words, confirm the intention of the business to sell the non-current assets converts the presentation of the non-current assets to the current assets. This is the change of classification which brings changes in the implications of the accounting

Under the IAS 1 of IFRS(International Financial Reporting Standard), every business entity must comply with reporting and representation of financial data. Five financial statements are the most crucial and mandatory for reporting. A balance Sheet is one of the most important financial statements among all financial statements. The other four statements include the income statement,

International Financial Reporting Standards(IFRS) dictate the companies the standards for preparing the financial statements. According to the standards and regulations, companies must disclose their financial statements. Preparation of statements is mandatory according to the standards. The financial statements should be fair, transparent, and comparable around the world. Compliance with accounting standards is necessary. Financial reporting