IFRS 8 reporting segments seeks to assist the user of financial statements gain a clearer understanding of the performance of the business by requiring disaggregation of the reported financial information into segments.
Financial statement are report prepared by management of the entity to provide information to owners of the entity and other users about the financial position and financial performance of the entity.
The following are components of a set of financial statements:
- statement of financial position; This is the statement which shows how much is
Which one of the following statements is correct as regards the order of liquidity?
A. The most permanent asset appears first.
B. The least permanent asset appears first.
C. fixed assets appear before current assets.
D. long term liabilities appear before current liabilities.
Posting is the process of transferring the debit and credit entries from the journals to the respective accounts in the ledger. The journal includes sales and purchase journals, return inward and outward journals, general journals, and cashbooks.… Read the rest
A joint venture arises when two or more parties set up a separate entity to be operated under joint control. Neither venturer controls individual assets or liabilities. Rather, they are jointly in control of the entire venture. There must be a separate legal entity. The entity will prepare its own separate financial statements and will be dealt with … Read the rest
An associate is an entity over which the investor has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, without having control or joint control over these policies.
Significant influence is normally assumed to exist if the investor own between … Read the rest
Accounting records only those transactions which can be expressed in monetary terms.
The importance of money measurement concept is that money provides a common denomination by means of which heterogeneous facts about a business enterprise can be expressed and measured in a much better way. For e.g. When it is stated that a business owns TZS.1,00,000 cash, 500 tons of … Read the rest