Balance Sheet

What are Accounts Payable? During the normal course of business, credit transactions that quite common. This implies that companies procure goods and services at an earlier date, and then the amount is settled later. This gives them an added advantage to companies in terms of cash flows. When a company purchases goods and/or services on […]

What are Accrued Expenses? A typical year in a business cycle constitutes several different expenses incurred evenly or unevenly during the course of the business. Mostly, companies do not always pay expenses in an upfront manner. These companies pay these expenses later to get some leverage that might help them keep cash in hand intact.

Classification When a corporation obtains an intangible asset that depreciates over time, it is important to reduce its value on its balance sheet over time. Account of amortization expense is to be debited, while accumulated amortization is to be credited. The sum of amortization expense is known as accumulated amortization, which is documents intangible assets

Financial statements can be represented in a simple form or as classified statements. Classified statements represent the assets, liabilities, expenses, and revenues of an enterprise in a more detailed way. A classified balance sheet breaks down the asset and liabilities into sub-categories, and each category corresponds to a group of assets or liabilities of similar

What Are Intangible Assets? Under IAS 38.8, an intangible asset is defined as, It is an identifiable non-monetary asset that has no physical existence. It is a resource held by a company due to a past event(patent creation by research), and an economic benefit in the future is expected from it. The same standard has

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

A company’s balance sheet is a snapshot of financial health at a point in time. Assets, liabilities, and shareholder’s equity is recorded in the balance sheet. In the long-term assets, there are tangible and intangible assets. Each asset and liability is recorded to depict its present value adjusted for any allowance or deduction. Fixed assets

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