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
The accounting system is the series of tasks and records of an entity by which transactions are processed as a means of maintaining financial records. Such systems identify, assemble, analyse, calculate, classify, record, summarise, and report transactions and other events.
Financial accounting is the process of recording, summarizing and reporting the myriad of transactions resulting from business operations over a period of time.
The following are limitation associated with financial accounting:
- Financial accounting is historical in nature. Financial accounting present financial statement at the end of the period which normally covers the year in length
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