Accounting policy – meaning

IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors lays down criteria for the selection of accounting policies and prescribes circumstances in which an entity may change an accounting policy. The standard also deals with the accounting treatment of changes in accounting policies, changes in accounting estimates, and correction of errors.

Accounting policies are the specific principles, bases, … Read the rest

Accounting treatment for provision, contingent liabilities and contingent assets as required by IAS 37.

The objective of IAS 37 provision, contingent liabilities, and contingent assets, is to ensure that appropriate recognition criteria and measurement bases are applied to provision, contingent liabilities, and contingent assets and that sufficient information is disclosed in the notes to enable users to understand their nature, timing and amount.

IAS 37 provision, contingent liabilities, and contingent assets prescribe the … Read the rest

Revision question on financial accounting conceptual framework NBAA, B2, Nov 2018.

(a)  Identify the main users of the financial statements and describe the adequacy of the general purpose financial statements to cater for the reasonable needs of its major users.                                                                 

(b)       The  International   Accounting   Standards   Board   (IASB)   issued the Conceptual Framework which among other purposes assists the Board in the development of future IFRSs and … Read the rest

What is the International Accounting Standard Board (IASB)?

The International Accounting Standard Board (IASB) which was set up in April 2001 is independent standard-setting body of IFRS foundation. It replaces the International Accounting Standard Committee (IASC)  which had been setting International Accounting Standard (IAS) since 1973. At the time of its initiation, the IASB adopted in full all existing IASs and decided that all new … Read the rest

7 advantages of IFRS and IAS.

Financial reporting standards are set of standards adopted by certain jurisdiction in preparation of financial statements. there exist a number of acceptable financial reporting standards in different countries such as USA GAAP, UK GAAP, Plan Comptable Général (France) and International Financial Reporting Standards (IFRS) issued by IFAC. the financial reporting standards which used by majority of the countries in the … Read the rest