How can we change the Depreciation method?
Most of the non-current assets held by the entities require depreciation because of use devaluation as a result of use of the asset in business operations or other factors. Many different depreciation methods can be used by the entities to record the effect of devaluation. However, IAS 16 Property, Plant and Equipment requires that: In […]
What are the Elements of Financial Statements?
The main purpose of financial statements is to provide financial information to the users to assist them in their economic decisions. The financial statements basically present the financial information in such form that it is not only understandable but also useable. That is why financial statements present the financial effects of different business events that […]
What is FISH inventory method?
FISH is the acronym for First-in, Still-here and is basically an alternative name for Last-in, First-out (LIFO) method. Usually authors and article writers come up with novel terms sometimes to make things even more understandable or sometimes just to make fun. So FISH terminology for LIFO system might just be the similar kind of case. […]
What is LISH inventory method?
LISH is the acronym for Last-in, Still-here and is basically just another name given to First-in, First-out (FIFO) method which is a well known inventory valuation method based on particular cost flow assumption. Different authors sometime coin new terms, this might be one of them. As FIFO is the widespread term and is also used […]
What is the recognition criteria of equity?
Framework for Preparation and Presentation of Financial Statements (Framework) issued by International Accounting Standards Board (IASB) is one of the important documents. Many of the basic concepts that also form the very foundation of International Accounting Standards (IASs) have been discussed in it and provides a framework for development of accounting standards as well. Although […]
What are the important Qualitative characteristics of Financial Statements?
As we understand that different users require financial information for assistance in their economic decisions. Entities publish financial statements so that users can get their information needs fulfilled. The dependence of users’ economic decision on financial statements is crucial and if the financial information is not accurate or is not true and fair then users […]
What is the objective of Financial Statements?
The basic objective of any financial statement is to fulfill information needs of the intended users. However, there are different kinds of financial statements for different purposes. Broadly we can divide the financial statements in two different types: General Purpose Financial Statements Special Purpose Financial Statements As said earlier that the basic objective of every […]
Why Financial Statements are prepared on Accrual basis?
Financial Statements assist internal and external users by providing them financial information which they in making economic decisions. As their decisions are based on financial information underlying financial statements therefore, decision making process depends heavily on the relevance and reliability of financial statements which in simple words mean that if financial statements are not reporting […]
10 questions to ask yourself before you start SELF STUDY
Deciding whether to do self-study or to get a professional help is not easy.Situation becomes tense even more when it involves professional qualification and you are already in your professional life. To help you make the right decision whether you can do or should do self study, we discussed with students and teachers to understand […]
