Category: ACCOUNTING TOPICS

Financial statements are the information are a set of following 5 components: Balance Sheet also called Statement of Financial Position; Profit & Loss Account also called Statement of Profit and

The frequency of preparing and reporting financial statements to users depends on following factors: Territory in which business ins registered Legal status of the Company Any specific sector reporting requirement

Reporting framework is the set of rules under which a company prepares its financial statements. The set of such rules varies from country to country. Generally, it would include requirements

Operating fixed assets are tangible resources/ assets that provide economic benefits to the business and are owned by the business for more than a year. Some common examples of Operating

Useful life: Every asset except land has a useful life over which it provides economic benefits and over which its value deteriorates and ultimately it is required to be scrapped

Impairment is the amount by which the carrying amount of an asset exceeds its recoverable value. Recoverable value is higher of its fair value (disposal value) less cost of disposal

In general, value of assets decrease over time but it may increase in certain circumstances especially in inflationary economies. Accounting standards allows two models for accounting of fixed assets. Cost

Capital work in progress represents costs incurred to date on a fixed asset which is still under construction at the balance sheet date. This concept is more relevant immovable assets

Investments are assets which a Company has purchased with the intention of generating gains in future either through holding such asset or through its sale. Examples include: Shares of other