financial accounting notes

Chart of accounts – meaning

Chart of accounts is an index to the accounts in the general and subsidiary ledgers. Ledger account are classified into five group of account. Chart of accounts is an index to place these five group of of accounts into an order, to assist into locating ledger accounts which allow for the accounts to be easily accessed.

Read the rest

Generally accepted accounting principles (GAAP) – meaning

In the United States, Generally Accepted Accounting Principles (GAAP) is the name for the framework of accounting rules used in the preparation of financial statements. GAAP is created by the Financial Accounting Standards Board (FASB).

The goal of GAAP is to make it so that potential investors can compare financial statements of various companies in order to determine which … Read the rest

Key information required to be disclosed for each reportable segment according to IFRS 8.

IFRS 8 operating segments seeks to assist the user of financial statement gain clearer understanding of the performance of the business by requiring the dis-aggregation of the reported financial information into segments.

Information to be reported

  • The IFRS requires an entity to report a measure of operating segment profit or loss and of segment assets.
  • It also require an entity
Read the rest

Debit note – meaning

The buyer normally issues debit note to a supplier to request for credit note. The buyer may not debit the account of the supplier until his request is approved by him evidenced by the issue of credit note to the buyer.  

A debit note is also prepared whenever it becomes necessary for one reason or the other to increase … Read the rest