Purpose of Issuing Sale Order (SO) : A sales order is a document that confirms a sale. It is generated when a buyer communicates that he wants to purchase a product. It is seller-generated document that authorizes sale of the specified item(s), issued after receipt of a customer’s purchase order. A sales order is an internal document of the company,
Continue reading Purpose of Issuing Goods Received Note ( GRN): Goods received note (GRN) is recorded of goods received at the point of receipt. This record is used to confirm all goods have been received and often compared to a purchase order before payment is issued. Who issues Goods Received Note ( GRN) : Goods received note(GRN) is produced by warehouse/store department (internal
Continue reading Purpose of Issuing Purchase Request Purchase request is document generated by a user department or storeroom-personnel to notify the purchasing department of items it needs to order, their quantity, and the timeframe. It may also contain the authorization to proceed with the purchase. Also called purchase request or requisition. Who issues purchase request Purchase request filled out by store department or
Continue reading Purpose of Issuing Purchase Order A purchase order (PO) is a commercial document and first official offer issued by a buyer to a seller, A buyer-generated document that authorizes a purchase transaction. When accepted by the seller, it becomes a contract binding on both parties. A purchase order sets forth the descriptions, quantities, prices, discounts, payment terms, date of performance
Continue reading CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND ASSOCIATES Learning Objectives Introduction The Basic Principles for Consolidating the Statement of Profit or Loss Non-Controlling Interest Intra-Group Trading Mid-Year Acquisitions IAS 28 Investments in Associates and Joint Ventures Trading with the Associate ………………………………………………………………………………………….. I. Introduction The consolidated statement of profit or loss presents the financial performance of all group entities (i.e.
Continue reading CONSOLIDATED STATEMENT OF FINANCIAL POSITION LEANRING OBJECTIVE 1. What is group? 2. Requirement to prepare consolidated financial statement 3. The basic method of preparing a consolidated statement of financial position 4. The mechanics of consolidation 5. Goodwill 6. How to include fair value in consolidation workings ………………………………………………. I. What is a group? A group exists where on entity, the parent,
Continue reading IAS 7 STATEMENT OF CASH FLOWS LEARNING OBJECTIVE I. OPERATING ACTIVITY UDNER DIRECT METHOD II. INDIRECT METHOD III. INVESTING ACTIVITY IV. FINANCING ACTIVITY ………………………………………………… I. OPERATING ACTIVITY UDNER DIRECT METHOD Operating activities are the principal revenue-producing activities of the business, and this is further adjusted to deduct interest paid and tax paid. Investing activities are cash spent on on-current assets,
Continue reading IAS 38 Intangible Assets LEARNING OBJECTIVE 1.DEFINITION 2.MEASUREMENT AFTER INITIAL RECOGNITION 3.GOODWILL, R&D …………………………………………… 1. DEFINITION An intangible asset is an identifiable non-monetary asset without physical substance. Intangible assets include items such as: -Licences -Intellectual property, e.g. patents and copyrights -Brand names -Trademarks -Goodwill For an asset to be identifiable, it must fall into one of two categories: 1.It is
Continue reading CAPITAL STRUCTURE AND FINANCE COSTS LEARNING OBJECTIVES I.THE CAPITAL STRUCTURE OF A LIMITED LIABILITY COMPANY II.ORDINARY SHARE CAPITAL III.RIGHTS ISSUES IV.BONUS ISSUES ……………………………………………………… I. THE CAPITAL STRUCTURE OF A LIMITED LIABILITY COMPANY Finance is provided by the capital invested in the business. There are a number of ways that a business can attract financial capital but each has its own
Continue reading IAS 37 – PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS LEARNING OBJECTIVES I.DEFINITIONS II.PROVISION RECOGNITION III.THRESHOLD of IAS 37 IV. EXAMPLE FOR IAS 37 ………………………………………………………… I. DEFINITIONS A provision is a liability where the timing or the amount is uncertain. A contingent liability is a liability that may result, but depends (or is contingent) on the outcome of uncertain events. For
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