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
Continue reading IAS 16 PROPERTY, PLANT AND EQUIPMENT LEARNING OBJECTIVES 1.Definition 2.Recognition 3.Initial Measurement 4.Subsequent Expenditure 5.Subsequent Measurement 6.Depreciation …………………………………………………………….. Definition: Property, plant and equipment are tangible assets held by an entity for more than one accounting period for use in the production or supply of goods or services, for rental to others, or for administrative purchases. Recognition: Cost of asset can
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 ACCRUALS AND PREPAYMENT LEARNING OBJECTIVE I.INTRODUCTION II.PREPAYMENTS III.ACCRUALS IV.SUMMARY OF ENTRIES ………………………………………………………… Download lesson: CHAPTER 1 ACCRUAL AND PREPAYMENT
Continue reading The Chapters of F3 Financial Accounting are as follows:
Continue reading I. PURPOSE OF BANK RECONCILIATION The purpose of a bank reconciliation is to ensure that the ledger account balance and the bank statement balance agree ( subject to timing difference). There will be two types of reconciling items: -Items that appear on the bank statement but have not yet been entered into the day books -Items that have been entered
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