Revision question on financial accounting (IPSAS)

 In a move to improve the capacity of government to provide the legislative bodies, citizens, media and other stakeholders with understandable, relevant, reliable, and comparable financial statements, the government of Rwanda has taken the path of adopting the International Public Sector Accounting Standards (IPSAS).


Discuss any four benefits that will be achieved by the … Read the rest

IAS 8 revision question (NBAA C2 NOV 2018)

Due to the complexity of International Financial Reporting Standards (IFRSs), judgements used at the time of transition to IFRSs have often resulted in prior period adjustments and changes in estimates being disclosed in financial statements. The selection of accounting policies and estimation techniques are intended to aid comparability and consistency in financial statements.
However, IFRSs … Read the rest

Revision question on IASB conceptual framework (NBAA, C1, NOV 2018)

The IASB Conceptual Framework requires information to reflect the substance of a transaction for it to be reliable.
The substance of a transaction is its commercial effect. Normally this is the same as its legal form but for complex transactions, this may not be the case. The general principle that results from the IASB Conceptual Framework is that where the … Read the rest

IAS 41 revision question (NBAA C1, NOV 2018)

Agriculture is one of the world’s largest industry. In some countries it is the mainstay of the gross domestic product. Yet until January 2003 when the IASB issued IAS 41 Agriculture, no major accounting standard setting body had issued a comprehensive pronouncement on this topic. IAS 41 introduced what some would say are radical changes in the way agricultural … Read the rest

IAS 41 Revision question 2 (NBAA, NOV 2018)

Miti Safi na Nyuki Brothers (MSNB) is a Limited Company that was incorporated to invest in forest and bee resources in general and to collect forestry and beekeeping revenues. As at 30th June 2018, it had a forest plantation in the Southern Highland part of Tanzania in Njombe region consisting of 250,000 Eucalyptus trees that … Read the rest

Revision question on IAS 16, IAS 40 and IFRS 9

Kantanka Ltd adopts the revaluation model of IAS 16 Property, Plant & Equipment and the fair value model of IAS 40 Investment Property. Kantanka Ltd chooses to recognize any fair value gains or losses arising on its equity investments in ‘other comprehensive income’ as permitted by IFRS 9 Financial Instruments. The following transactions relate to Kantanka Ltd for the year … Read the rest

Revision question on IFRS 13 – Fair value measurement

The international accounting standard board (IASB) has recently completed a joint project with the Financial Accounting Standard Board (FASB) on fair value measurement by issuing IFRS 13 : fair value measurement.
IFRS 13 defines fair value, establishes a framework for measuring fair value and requires significant disclosures relating to fair value measurement. The IASB wanted … Read the rest