financial accounting

3 requirements of IFRS 8 on identification of reportable segments.

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.

Definition of reportable segment.

IFRS 8 requires an entity to report financial and descriptive information about its reportable segments. Reportable segments are operating segments or aggregation of reporting … Read the rest

5 components of the set of financial statements

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
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What is meant by associate in consolidated financial statements?



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