Meaning of the term ‘fair value’ as defined by IFRS 13.

Many accounting standards require or permit the use of fair values in measuring assets and liabilities. However, there has not always been consistency between these standards regarding the methods of arriving at fair values. IFRS 13 Fair values was issued on may 2011 as an attempt to remedy this problem. The IFRS aim to define fair value, set out the … Read the rest

Revision question on creative accounting ( NBAA May 2016)

Creative  accounting involves presenting income, expenses, assets or liability with the intent to influence readers towards the interpretations desired by the authors. It becomes the financial number game and is systematic misrepresentation of net income or net assets.  this is achieved through the aggressive choice and application of accounting principles, fraudulent financial reporting , earning management or income smoothing
the … Read the rest