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5 advantages and any 3 disadvantages of using flowcharts to record accounting control system

Advantages of flowcharts to record accounting control system (After a little experience they can be prepared quickly. As the information is presented in a standard form, they are fairly easy to follow and to review They generally ensure that the system is recorded in its entirety, as all document flows have to be traced form …

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CONDITIONS FOR FINANCIAL STATEMENT TO BE RELIABLE

In order for financial statements to be reliable, they should: not include material error or bias; be a faithful representation; show the substance rather than the legal form of the transaction; be neutral; be prudent (but not to the extent that reserves become hidden); and be complete (within the confines of materiality and cost). RELATED …

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IMPORTANCE OF ACCOUNTING STANDARDS (IFRS)

Accounting standards refer to authoritative standards for financial reporting and specify how accounting transactions and events are to be recognized, measured, presented and disclosed in the financial statements. internation financial reporting standards (IFRS) are issued by a global body referred to as International Accounting Standards Board. The idea is that these same standards are used …

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OBJECTIVE OF ACCOUNTING

The following are Objectives of Accounting Providing Information to the Users for Rational Decision-making The primary objective of accounting is to provide useful information for decision-making to stakeholders such as owners, management, creditors, investors, etc. Various outcomes of business activities such as costs, prices, sales volume, value under ownership, return of investment, etc. are measured …

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FORMAL PROCESS OF DEVELOPING IFRS BY IASB

International Financial Reporting Standards are developed through a formal system of due process and broad international consultation that involves accountants, financial analysts and other users of financial statements, the business community, stock exchanges, regulatory and legal authorities and academics. The formal due process usually involves the following steps: IASB staff review all the issues associated …

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The objectives of the international accounting standards board (IASB)

The objectives of the IASB are: to develop, in the public interest, a single set of high quality, understandable and enforceable global accounting standards that require high quality, transparent and comparable information in the financial statements to help participants in the various capital markets of the world and other users of the information to make …

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