Rules for preparation of Owners Equity Statements in accordance with IAS-1

Structure and content for Statement of changes in equity according to IAS-1: Under paragraph 106: An entity shall present a statement of changes in equity as required by paragraph 10. The statement of changes in equity includes the following information: (a) total comprehensive income for the period, showing separately the total amounts attributable to owners of the parent and to non-controlling interest; (b) for each component of equity, the effects of retrospective application or retrospective restatement recognized in accordance with IAS 8; and (c) [deleted] (d) for each component of equity, a reconciliation between the carrying amount...

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IAS-16 (PPE)

Introduction International Accounting Standards (IAS) introduces many internationally accepted accounting standards and principals. Among them a section of  IAS that is indicated as IAS-16 describes about Property, Plant & Equipment. We will discuss various principles and standards of IAS-16.    Objective The goal of this standard is to prescribe the accounting treatment of tangible fixed assets, so that users of financial statements may know information about the investment that the institution has in its property and equipment as well as the changes that have occurred in that investment. The main problems in the accounting...

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Conceptual Framework

Financial statements are prepared and presented for external users by many entities around the world. Although such financial statements may appear similar from country to country, there are differences which have probably been caused by a variety of social, economic and legal circumstances and by different countries having in mind the needs of different users of financial statements when setting national requirements. These different circumstances have led to the use of a variety of definitions of the elements of financial statements: for example, assets, liabilities, equity, income and expenses. They have also resulted in the use of...

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IAS vs IFRS

Difference between IAS & IFRS : All the accounting standards which were made between 1973 and 2001, are called IAS and all the accounting standards which were made after 2001, are called IFRS IAS were made by International Accounting Standards Committee (IASC) and IFRS were made by International Accounting Standards Board (IASB). Some new roles were made in IFRS which were not in IAS.  ...

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Assets

An asset of an entity is a present economic resource to which the entity has a right or other access that others do not have. There are two types of assets: 1. Current assets 2. Non-current assets Current assets are cash and other assets expected to be converted to cash or consumed either in a year or in the operating cycle (whichever is longer), without disturbing the normal operations of a business. Examples: Cash and cash equivalents Short term investment Receivables Inventory Prepaid expenses Non-current assets are those which cannot be converted into cash within a year or in the operating cycle (Whichever is longer). Examples: Investment Goodwill Property,...

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Liabilities

A liability is determined as an responsibility of an entity arising from previous dealings or activities, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of financial advantages later on. There are two kinds of liabilities- 1. Long-term liabilities 2. Current liabilities Long-term liabilities contain potential upcoming forfeit of financial advantages coming up from present obligations that are not payable within a year or the operating cycle of the company, whichever is longer. Examples: ►    Bonds payable ►    Long-term notes payable ►   ...

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Agency Relationship

An agent is one who represents another, known as the significant, in dealings with third people. Such expression is known as company. In an agency relationship, the significant affiliates to the agent the right to act on his or her aspect, and to perform out some stage of interest while so achieving. Areas: Agency Relationships are common in many professional areas. Employment.     Import-Export business Consignment businesses Real property dealings (real property broker agent, mortgage brokerage). In property broker agent, the customers or suppliers are the concepts themselves and the broker or his dealer who symbolizes...

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What is Accounting & Accountancy?

Accounting is the art of recording, summarizing, reporting, and analyzing financial transactions. Accounting allows a company to analyze the financial performance of the business, and look at statistics such as net profit. Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in selecting the information that is relevant to the user and is reliable. The principles of accountancy are applied to business...

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