Financial Statements

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

The balance sheet of a bank is quite different from that of other companies and businesses. Some elements that make up a company balance sheet, such as accounts receivables, accounts payable, and inventory, will not be seen in a bank’s balance sheet. Rather, you will come across things like investments and loans, deposits, and borrowings.

The Balance Sheet is considered one of the companies’ primitive sources of decision-making. This is primarily because it enlists all the details that help stakeholders reflect on the company’s financial position. In this regard, assets tend to be elementary classes because they tell the value of recoverable amounts from various financial statements. Assets can be

Overview Accrual-based accounting is used across all organizations today to apply the matching principle of accounting. This is mainly done to match the revenues for a particular period with the subsequent expenses covered in the given time frame. This helps to capture the company’s profitability, over the given course of time, with much-needed accuracy. During

Definition of Cash and Cash Equivalents Cash and Cash Equivalents mainly refer to the line items on the Balance Sheet that represent the underlying value of the company’s assets that are in the form of cash or any other liquid form of cash. They mainly include a couple of support, which have relative ease with