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Importance of disclosing Diluted Earnings Per Share (DEPS).

IAS 33: Earnings Per Share (EPS) requires listed entities to disclose basic earnings per share as well as diluted earnings per share. In calculating diluted earnings per share, any financial instrument which potentially dilutes earnings per share should be taken into account.

The importance of disclosing diluted Earnings Per Share (DEPS.

Many entities issue financial instruments that allow the holder … Read the rest

Revision question on current purchasing power (CPP)

Compare the general principles underlying Current Purchasing Power (CPP) accounting and Current Cost Accounting (CCA).

d)  Recognition in financial reporting is the process of incorporating into the financial statements an item that meets the definition of an element of financial statements and satisfies specified criteria.


State the criteria for recognition of an element of financial statements in financial … Read the rest

Revision question on advantages of adopting accounting standards.

It is sometimes argued that companies should be given a choice in matters of financial reporting on the grounds that accounting standards are detrimental to the quality of such reporting.


Identify FIVE points in favor of the adoption of accounting standards.                   … Read the rest

Revision question on preparation of forecasted income statement and statement of financial position.

You have been approached by a recently established business enterprise. This business is seeking financial accommodation from its bankers who are prepared to provide overdraft facilities. Before final approval can be given, the figure maximum overdraft is required and the time in the year when this well arise. The forecast cash balance at the end of the first period of … Read the rest