What is revenue recognition and accounting treatment for goods sold or sent on sale...
Before we discuss the recognition principle and accounting treatment for sales under sale or return conditions. First lets have ourselves clear about what is...
Why don’t we revalue current assets like non-current assets?
Concept of revaluation of assets is usually associated with non-current assets only. The main reason why the term 'revaluation' is just attached with non-current...
Can we capitalize material relocation expenses incurred on non-current asset?
First of all we must be clear about subsequent expenditures, criteria for capitalizing subsequent expenditures in carrying amount of non-current/fixed assets and relocation costs...
What is the recognition criteria for subsequent expenditures incurred on non-current assets?
Subsequent expenditures refers to such costs which are incurred after the asset is recognized in the financial statement and brought to the location...
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...
How to account for Temporary Investment Incomes on funds from Specific borrowing?
It is a usual practice that if entity has borrowed funds to finance a qualifying asset then they might be invested temporarily until the...
What factors are considered in determining useful life of intangible asset?
Determining useful life of an intangible asset is not as easy as a tangible asset as most often intangible assets are of such nature...
How fixed assets are revalued if fair value cannot be determined using market value?
IAS 16 Property, Plant and Equipment (IAS 16) recognizes the fact that fair value of every asset may not be determined using market value...
What is Special purpose framework of preparing Financial Statements?
Generally financial statements that are made available to public are prepared using such accounting and reporting framework that caters the general decision making needs...
Is Residual value of the asset calculated on Present value or Future value basis?
One of the reasons for charging depreciation against the historical cost of the asset, revalued amount or simply carrying value of asset is that...