P2
IFRS | IAS not be relevant for SME financial statements In July 2009, the International Accounting Standards Board (IASB) issued the IFRS for Small and Medium-sized Entities (IFRS for SMEs). This standard provides an alternative framework that can be applied by eligible entities in place of the full set of International Financial Reporting Standards (IFRSs). The IFRS ( International Financial
Continue reading IAS 2 Inventory Scope The following items are excluded from the scope of the standard. •Work in progress under construction contracts (covered by IAS 11 Construction contracts) •Financial instruments (ie shares, bonds) •Biological assets Definitions Inventories are assets: – Held for sale in the ordinary course of business; – In the process of production for such sale; or – In
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 IAS 2 INVENTORY (F3) LEARNING OBJECTIVE I.INVENTORY IN THE FINANCIAL STATEMENTS II.YEAR-END INVNETORY ADJUSTMENTS III.TYPES OF INVENTORY IV.IAS 2 INVENTORIES V.METHODS OF CALCULATING THE COST OF INVENTORY I. INVENTORY IN THE FINANCIAL STATEMENTS $ $ Revenue x Opening Inventory X Purchases X Less: Closing Inventory (x) Cost of Sales/cost of goods sold (x) Gross Profit x At the beginning of
Continue reading Question : On 1 April 2015, Para acquired 70% of Sunna’s equity shares paying $205,800. The summarized statements of financial position of the two companies at 31 December 2015 are: Para Sunna Note $’000 $’000 Non-Current Assets Property, Plant and Equipment 200 230 1 Investments 256 10 2 456 240 Current Assets Inventory 30 34 3
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