By Hasaan Fazal on February 11, 2012
First of all we must be clear that goodwill is an intangible asset that entities can recognize in their financial statements but only such goodwill that is acquired in business combination. Internal goodwill or in-house goodwill is not recognized as entity’s assets in books of accounts. One more thing to understand is that goodwill is […]
Posted in ACCA, ACCA - F3, ACCA - F7, ACCA - F8, Audit Evidence - Substantive Procedures, CA, Consolidated IS, Consolidated SoFP, Consolidation and Associates, FFA, FIA, Financial Accounting, Financial Statements of Companies, IAS 36, IAS 38, IFRS 3, Impairment of Assets, Intangible Assets, Intangible Non-current Assets, Module B, Module C, Module D |
By Hasaan Fazal on February 8, 2012
If we look for the answer to the question that why goodwill is an asset, then there is no specific explanation given in two of the renowned accounting frameworks i.e. IFRSs and US GAAPs. Although, the term goodwill has been defined and accounting treatment of goodwill has been under heavy discussion but not much is […]
Posted in ACCA, ACCA - F3, ACCA - F7, Accounting Concepts and Policies, CA, CIMA, CIMA C02, Consolidated IS, Consolidated SoFP, Consolidation and Associates, FFA, FIA, Financial Accounting, Financial Statements of Companies, Financial Statements of Sole Traders, IAS 36, IAS 38, IASB Framework for Financial Statements, IFRS 3, Intangible Assets, Intangible Non-current Assets, Module C, Module E |
By Hasaan Fazal on January 18, 2012
Quite a basic question in fact. A lot of students realize about these concepts as soon as they start studying Auditing especially when they have to apply different audit procedures where these basic concepts play pivitol role and thus we cannot escape them. To begin with, we need to clear one misconception that LEDGER is […]
Posted in ACCA, ACCA - F3, ACCA - F7, Accounts & Ledgers, Accounts & Ledgers, Books of Prime Entry (Journals), CA, CAT, CAT - T1, CAT - T3, CAT - T6, CIMA, CIMA C02, Control Accounts, FA1, FA2, FFA, FIA, Financial Account Basics, Financial Accounting, Financial Statements of Companies, Financial Statements of Companies, Financial Statements of Sole Traders, Financial Statements of Sole Traders, Interpretation of Financial Statements, Inventories and Construction Contracts, Inventory, Inventory, Module B, Module C, Tangible Non-current Assets, Tangible Non-current Assets, Tangible Non-current Assets |
By Hasaan Fazal on November 15, 2011
Depreciation simply means a steady decrease in the value of asset. Often it is studied in relation to the time period over which such decrease in the value has occurred. Therefore, often it is also defined as the value lost by the asset over its useful life i.e. the time period for which it was subjected […]
Posted in ACCA, ACCA - F3, ACCA - F7, Accounting Concepts & Conventions, Accounting Concepts and Policies, CA, Capital and Revenue Expenditure, CAT, CAT - T1, CAT - T3, CAT - T6, CIMA, CIMA C01, CIMA C02, FA1, FA2, FFA, FIA, Financial Accounting, Financial Statements of Companies, Financial Statements of Sole Traders, IAS 16, IASB Framework for Financial Statements, Intangible Non-current Assets, Intangible Non-current Assets, Module B, Module C, Tangible Non-current Assets, Tangible Non-current Assets, Tangible Non-current Assets, Trial Balances and Financial Statements |
By Hasaan Fazal on October 4, 2011
Statement of financial position or Balance sheet is the essential part of the complete set of financial statements. It is also one of the most sort after source of information for the users of financial statement for decision making purposes. It provides an insight into the financial status of the entity and can also provide […]
Posted in ACCA, ACCA - F3, ACCA - F7, Basics of Consolidation, CA, Conceptual and Regulatory Frameworks, Consolidated SoFP, Financial Accounting, Financial Statements of Companies, Financial Statements of Companies, Financial Statements of Sole Traders, Financial Statements of Sole Traders, Interpretation of Financial Statements, Module C |
By Hasaan Fazal on June 5, 2011
According to IAS 16 the purchase price of the asset includes the amount of non-refundable taxes i.e. such taxes which cannot be claimed back are capitalized and are included in the cost of the asset at the time of purchase. For example, when the asset is purchased or imported then buyer/importer is required to pay […]
Posted in ACCA, ACCA - F3, ACCA - F7, CA, Capital and Revenue Expenditure, CAT, CAT - T6, CIMA, CIMA C02, FFA, FIA, Financial Account Basics, Financial Accounting, Financial Statements of Companies, Financial Statements of Companies, Financial Statements of Sole Traders, Financial Statements of Sole Traders, IAS 16, Intangible Assets, Intangible Non-current Assets, Module C, Sales Tax, Tangible Non-current Assets, Tangible Non-current Assets, Taxation |
By Hasaan Fazal on May 30, 2011
IASB framework provides conceptual guidance regarding preparation and presentation of financial statements whereas IAS 1 sets out the principles and rules for preparation and presentation of financial statements. So the difference between these two documents must be clear as framework does not amount to standard and is separate from International Accounting Standards. The provisions stated […]
Posted in ACCA, ACCA - F3, ACCA - F7, Accounting Concepts & Conventions, Accounting Concepts and Policies, Basics of Consolidation, CA, CAT, CAT - T6, CIMA, CIMA C02, Conceptual and Regulatory Frameworks, FA2, FFA, FIA, Financial Account Basics, Financial Accounting, Financial Statements of Companies, Financial Statements of Sole Traders, IAS 1, IASB Framework for Financial Statements, Module B, Module C, Published Accounts |
By Hasaan Fazal on May 29, 2011
While preparing financial statements, especially Statement of Financial Position (SoFP) also, known as balance sheet, two presentation concepts are applied which are termed as Grouping and Marshalling. Grouping means presenting similar items together as one figure i.e. by combining them at one place and presenting as a single item on the face of financial statement. […]
Posted in ACCA, ACCA - F3, ACCA - F7, Accounting Concepts & Conventions, Accounting Concepts and Policies, Basics of Consolidation, CA, CAT, CAT - T3, CAT - T6, CIMA, CIMA C02, Consolidated IS, Consolidated SoFP, Consolidation and Associates, FA2, FFA, FIA, Financial Account Basics, Financial Accounting, Financial Statements of Companies, Financial Statements of Companies, Financial Statements of Sole Traders, Financial Statements of Sole Traders, IAS 1, Module B, Module C, Partnerships, Published Accounts |
By Hasaan Fazal on May 14, 2011
Although the accounting treatments and provisions regarding presentations of different important transactions in the financial statements is dealt separate accounting standards. However, in the absence of any specific guidance, provisions of IASB Framework and IAS 1 provides overall guidance for preparation and presentation of financial statements. Before we discuss both documents lets clear out few […]
Posted in ACCA, ACCA - F3, ACCA - F7, Accounting Concepts & Conventions, Accounting Concepts and Policies, CA, CAT, CAT - T3, CAT - T6, CIMA, CIMA C02, FA2, FFA, FIA, Financial Account Basics, Financial Accounting, Financial Statements of Companies, Financial Statements of Companies, Financial Statements of Sole Traders, Financial Statements of Sole Traders, IAS 1, IASB Framework for Financial Statements, Module B, Module C, Published Accounts |
By Hasaan Fazal on May 12, 2011
Authorized capital: The amount of capital with which a company is registered with the registrar of companies (body responsible for registration of companies). It is the maximum amount of capital which a company can raise through shares i.e. shared capital can be maximum up to the authorized capital and not beyond. Due to this reason […]
Posted in ACCA, ACCA - F7, Accounting Concepts & Conventions, Accounting Equation, CA, Capital structure and Financing of Companies, CAT, CAT - T3, CAT - T6, CIMA, CIMA C02, FA2, FFA, FIA, Financial Accounting, Financial Statements of Companies, Financial Statements of Companies, Financial Statements of Sole Traders, Module B, Module C, Published Accounts, Single Entry and Incomplete Records, Trial Balances and Financial Statements |
