What is the difference between Rule and Policy?
Rules and Policies are sometimes so packed together that it becomes impossible to segregate one from the other. And it varies from one perspective to the other that whether rules are based on policies...
What is Credit note and when is it used?
A credit note is a source document providing evidence that a credit entry has been made in the financial records for specific reason which is explained on the face of this business document.
Credit note...
What is the difference between financial report and financial statement?
Financial report means any report about monitory matters. In other words a financial report is about the transactions that have financial effects. To run a business financial reports play important role as relevant financial...
What is meant by ‘net of’ in accounting or tax and other business related...
The expression 'net of' represents the exclusion of something from a particular sum.
For example net of tax means the resultant amount which is exclusive of tax or in other words the amount we get...
What is Journal and how many types of journals are in accounting?
These are the first formal books in which information regarding transaction is recorded . For the same reason they are also named as books of prime entry or books of original entry or ...
Why Training Costs are not capitalized as cost of the asset?
First of all not every directly attributable cost can amount to capitalization as cost of the asset. IAS 16 requires more than just a cost to be directly attributable before it qualifies for capitalization...
Is Drawings an expense account or a liability account?
In order to understand the nature of drawings account in accounting and why is it deducted from capital or equity total the better is that we look at the definitions of expense, liability and...
What is the difference between Income Statement and Statement of Comprehensive Income?
Income Statement and Statement of Comprehensive are differentiated because IAS 1 gives two options to present the items of incomes and expenses recognized during the period.
IAS 1 para 81 allows that all the items...
What is meant by ‘line item’ in accounting standards?
Term line item basically refers to such piece of information which has its own weight and should be presented on a separate line on any document.
In context of International Accounting Standards (IASs) and International...
What is the difference between revenue, income, profit, gain and return?
Every student who starts accounting and get an idea of these terms, the instinct of differentiating kicks in and he/she starts looking for the differences among these terms. Though there are sometimes minor and...