PRACTICAL ERROR ANALYSIS FOR FINANCIAL STATEMENTS In practice, draft financial statements are submitted by subordinates to their managers, these draft financial statements may be checked the following steps to identify errors or sometime fraud: Comparative figures from previous periods Unusual change in amount New type of accounts Relevant ratios analysis Analytical procedures etc. Let practice with the following example: Top
Continue reading Accounting Documents : Purposes of issuing practical accounting documents Accounting Documents Purposes a. Quotation 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,
Continue reading In finance, the net present value (NPV) or net present worth (NPW) is a measurement of the profitability of an undertaking that is calculated by subtracting the present values (PV) of cash outflows (including initial cost) from the present values of cash inflows over a period of time. Incoming and outgoing cash flows can also be described as benefit and
Continue reading Financial management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized function directly associated with the top management. The significance of this function is not seen in the ‘Line’ but also in the capacity of ‘Staff’ in overall of a company. It has
Continue reading IAS 10 Events after the Reporting Period: ABC’s statement of profit or loss showed a profit before tax of $2 million. After the end of the reporting period and before the financial statements were authorized for issue, the following events took place. A customer who owed $100,000 at the year end went bankrupt owing a total of $150,000. Inventory valued
Continue reading IAS 20 ACCOUNTING FOR GOVERNMENT GRANTS AND DISCLOSURE OF GOVERNMENT ASSISTANCE : Question: A company receives a 20% grant towards the cost of a new item of machinery, which cost $100,000. The machinery has an expected life of four years and a nil residual value. The expected profits of the company before accounting for depreciation on the new machine or
Continue reading IAS 11 Construction Construct Question: Answer : Note: – Gross amount due from customers is asset. – work certified given of $230,000 or 290,000 x 79.31%=$230,000 Source: BPP
Continue reading Property Tax at Cambodia The purpose of this law is to rationalize the use of land and to benefit the sub-national administrative budget. Property tax shall be imposed on the properties located in the municipality and provinces of the Kingdom of Cambodia. This tax is applied to immovable properties valued in excess of 100,000,000 riels (one hundred million riels). For
Continue reading The Public Lighting Tax is an indirect tax with the rate of 3% to be imposed on all alcoholic drinks (wine , beer etc) and cigarettes. Tax Base rates for Public Lighting Tax (PLT) may classify three types as follows. Tax base rate at 100% for importation, and tax base as invoiced amount included any taxes except VAT and PLT.
Continue reading Tax on Means of Transportation This tax shall be imposed on all vehicles and means of transportation. The tax rate and tax due shall be determined by the Prakas of the Ministry of Economy and Finance. *** Phnom Penh HR is the best recruitment and consulting in Cambodia and Asia , and our services by ACCA | CPA, Diploma in
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