I. IAS 16 PROPERTY, PLANT AND EQUIPMENT IAS 16 property, plant and equipment provide the rules relating to accounting for non-current assets, including depreciation. Definition depreciation is measure of the cost of the economic benefits of the tangible non-current asset that have been consumed during the period. This consumption may arise because of any of the following factors. Use-i.e. Plant
Continue reading The income statement is a financial statement that shows the financial performance of a business for an accounting period. ……………………… Download CHAPTER 2 introduction to final account
Continue reading Accounting: Accounting records a business’s transactions to produce financial statements such as income statement (IS) and statement of financial position (SFP). Accounting Equation: Asset = Capital + Liabilities Or Capital = Asset – liabilities Assets: An asset is a resource controlled by the entity as a result of past events and from which economic benefits are expected to flow to
Continue reading Accounting Differences between Public Accountability Company & SME (Small and Medium Entity) In July 2009, the International Accounting Standards Board (IASB) issued the IFRS (International Financial Reporting Standards) for Small and Medium-Sized Entities. There is no universally agreed definition of SME (small and Medium Entities). No single definition can capture all the dimensions of a small or medium-sized business, or
Continue reading Purpose of issuing delivery note: Delivery note is a document accompanying a shipment of goods that lists the description, and quantity of the goods delivered. A copy of the delivery note, signed by the buyer or consignee, is returned to the seller or consignor as a proof of delivery. Who issues delivery note: The delivery note issued by supplier (
Continue reading What is purpose of issuing official receipt? An official receipt is a written acknowledgment that a specified payment has been received. A receipt records the sale of goods or provision of a service. Who issues official receipt? The official receipt issued by accounting and finance department, seller, and send to buyer of goods or service. Who receives official receipt? The
Continue reading What is purpose of issuing invoice? An invoice is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices and discounts (if any) for products or services the seller had provided the buyer. It shows the date of shipment and mode of transport, delivery and payment terms.
Continue reading Purpose: Quotation is a formal statement of promise (submitted usually in response to a request for quotation) by potential supplier to supply the goods or services required by a buyer, at specified prices, and within a specified period. A quotation may also contain terms of sale and payment, and warranties. Acceptance of quotation by the buyer constitutes an agreement binding on
Continue reading AUDITING AND THE AUDIT PROFESSION CHAPTER OBJECTIVE 1. WHAT IS AN AUDIT 2. THE PURPOSE OF THE EXTERNAL AUDIT 3. ADVANTAGES AND DISADVANTAGES OF AN AUDIT 4. THE RELATIONSHIP BETWEEN AUDITING AND ACCOUNTING …………………………………………………………………………………… 1. WHAT IS AN AUDIT? Audit is: the independent examination of evidence from which the financial statements of an enterprise are derived in order to give
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