Fixed assets are normally referred to as property, plant, and equipment with a useful life of more than one year. In order words, they are expected to be converted into cash in more than one year due to their usages. Fixed assets costs are not directly charged into the entity’s income statement immediately when purchasing. […]
How Often Should Fixed Assets’ Useful Life be Reviewed? (Explained) Read More »
Overview: IAS 16 Property, plant, and equipment are the standard that deals with depreciation. Under this standard, an entity must depreciate fixed assets and then charge these depreciation expenses to its income statement in the period the entity uses those assets. Under this standard, depreciation starts when fixed assets are ready for us, and depreciation
What Are the Acceptable Depreciation Methods as per IFRS? Read More »
Overview: Income statement presents the results of the company’s operations for a specified accounting period. Accounting periods may be quarterly or yearly as required by laws and regulations. Income statement examines the income and expenses in a particular accounting period and finally arriving at net profit. The financial performance of the business in terms of
What Are the Limitation (Disadvantages) of Income Statement? Read More »
Overview: Financial statements present the financial activities and health of the business clearly and concisely. Financial Statements include income statements, balance sheets, cash flow statements, and statements of retained earnings. However, further disclosures are made as per relevant laws, regulations, and as required by the accounting standard that is used. Financial statements record all the
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Overview: A Balance Sheet is one of the financial statements that lists business assets, liabilities, and owner’s equity on a specified date. It is a synopsis of the business’s financial health as of the last date of the accounting period. The Balance Sheet is also called the Statement of Financial Position, and it lists out
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The Balance Sheet is one of the most valuable parts of the financial statement. Balance Sheet reports and presents three main financial statements including Assets, Liabilities, and (Equity) Capital of the entity. It depicts the financial position of the business on a particular date. It is normally presented in two columns by showing the current
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Overview: Financial statements auditing is normally performed by an independent and qualified audit firm or company. Audit firms are normally led by audit partners who are certified, public accountants. Financial statements normally must be audited annually and reported to the board of directors and other related users. The entity prepares its financial statements by complying
Fundamental Processes in an Audit of Financial Statements You Should Know Read More »
Overview: Vacations normally go more smoothly when you have made good reservations and also researched your destination. Purchasing a car is simpler when you have done all your homework on the car model and also made some early inquiries to line up the financing. It is a fact of life that in several processes of
ADVANTAGES AND DISADVANTAGES OF AUDIT PLANNING Read More »
Banking is one of the most fundamental sections of any economy. It facilitates everything from very simple purchases to complex investments like real estate. But the banking industry is quite easy to understand if you have the right guidelines. With that in mind, I was able to compile a list of the 10 Best Banking
10 Best Banking Books You Should Know (Selected in 2023) Read More »
Overview: Entity purchases goods or renders services to run its business every day, and some of those purchasing transactions are on credit while others maybe pay by cash immediately—most of the purchases including raw materials, offices supplies as well as fixed assets. All of these purchasing needs to records in the entity’s accounting system so
Accounting for Credit And Cash Purchase Transactions (Explained With Journal Entries) Read More »