Hasaan Fazal
Is Warranty cost capitalized or included in cost of the asset?
Warranty in simple words is a promise by the manufacturer to make good of your loss under certain conditions. This helps win customers’ confidence and is one of the major consideration in buyer’s purchase process. Warranty offers comes in different forms such as simple warrant, extended warranty, replacement warranty, repair warranty, life time warranty etc. […]
Exemptions in ACCA for ICAP Students
ICAP and ACCA being the two most prestigious accounting bodies share similar traits and therefore ACCA allows exemptions/relaxation in its examination scheme to ICAP students/affiliates/members. Following read will help you determine your exemptions. Exemptions available to ICAP students/affiliates/members are determined in two steps: Step 1: Determine the year of study. ACCA has classified the years […]
Exemptions in ICAP for ACCA Students
According to latest directive (issued in December 2010) ACCA qualified candidates can claim exemptions in the following subjects only if the relevant conditions are met: Modules Subjects/Tests Additional Conditions Pre-Entry Proficiency Test - A Functional English - A Quantitative Methods - B Introduction to Financial Accounting - C Financial Accounting - C Taxation Exemption will […]
What are the merits and demerits of assurance engagement?
Personally I don’t see any demerits or disadvantages of assurance engagements, however, if we count limitations of audit engagement as disadvantage or a problem then it is surely up to us. And in that case we can continue our discussion. Merits or demerits of assurance engagement depends on many different factors such as: who is […]
How to record the disposal of revalued non-current asset?
Revalued non-current asset is the one that has undergone revaluation and now that asset is now measured on revaluation basis instead of historical cost basis. To learn more about revaluation model consult our IAS 16 - Property Plant and Equipment resources page. The accounting treatment of disposal of asset that is carried on revaluation basis […]
What is meant by Control Environment in auditing?
In auditing control environment or internal control environment is one of the components of internal control system. Unlike other components, this is rather a resultant of many different factors or activities taking place inside the entity. We know Internal control environment in our daily life as office environment, the term we use to mean how things there. Just […]
What is the accounting treatment of Grants related to Income (Revenue Grants)?
According to IAS 20 government grants are simply assistance to the entity by the government to give or help entity get economic benefits. Such assistance can help either in acquiring or building certain asset easily in which case it is called (capital grant) or to cover certain expense (in which case it is termed as […]
What is the accounting treatment of Preference shares and dividend in financial statements?
To determine the accounting treatment of preference shares and dividend on such shares, first you have to identify if preference shares are redeemable or irredeemable. Accounting treatment for redeemable preference shares If preference shares are redeemable then shares are reported as liability in statement of financial position. This is an interesting fact that although they […]
What is Other Matter paragraph and when is it used?
Other matter paragraph is an additional paragraph which auditor might add if in his eyes it is important to draw attention of user to a matter other than those disclosed or presented in the financial statements. As this is about matter other than the ones already discussed in the financial statements thus the name other matter […]
What are different types of Shares?
Share is a document that represents a unit of ownership of the company in the hands of shareholder. In short, the shareholder has right of ownership to a certain extent determined in relation to total number of shares and shares held by the share holder. However, ownership right must not be confused with management right or […]
