The Statement of Cash Flows Indirect Method PRESENTS the SOCF beginning with Net income or loss, with subsequent ADDITIONS to or DEDUCTIONS from that amount for Non-cash revenue and expense items, Resulting in cash flow from operating activities. International Accounting Standard (IAS 7) STATES that SOCF is a vital ‘Financial Statement‘ … Read More
Fair Value through Profit and Loss a Concept that MEANS that at each ‘Balance Sheet date’ the asset or liability is Re-Measured to fair value (FV) and any Movement in that fair value is taken directly to the Income Statement. Fair Value through Profit and Loss – Accounting (As Per IFRS … Read More
Variable Consideration IFRS 15 REFERS to the portion of the ‘transaction price’ that depends on uncertain future events, i.e. Performance Obligations, Warranties, Discounts, and Other Incentives that May AFFECT the final payment received by the seller. IFRS 15 [Revenue from Contracts with Customers] ESTABLISHES the criteria of ‘Revenue Recognition‘, effective from … Read More
The ‘OBJECTIVE’ of IFRS 7 is to Require entities to provide disclosures in their Financial Statements that enable users to evaluate: IFRS 7 Effective Date An entity shall apply this IFRS for annual periods beginning on or after 1 January 2007. Earlier application is ‘ENCOURAGED’. If an entity applies this IFRS … Read More
The Concept Example of Core Competencies STATES these are activities, processes and abilities that give the entity a capability of Meeting the Critical Success Factors (CSF’s) for products or services and achieving competitive advantage. What are Competences? (Types) 1. Threshold Competences These are the activities, processes and abilities that provide … Read More
The ‘CORE PRINCIPLE’ of IFRS 8 is that an entity shall Disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environment(s) in which it operates. IFRS 8 Effective Date An entity shall … Read More
The ‘OBJECTIVE’ of IFRS 6 is to Specify the financial reporting for the Exploration for and Evaluation of Mineral Resources. In particular, the IFRS requires: IFRS 6 Effective Date An entity shall apply this IFRS for annual periods beginning on or after 1 January 2006. Earlier application is ‘ENCOURAGED’. If … Read More
The ‘OBJECTIVE’ of IFRS 5 is to specify the ‘accounting‘ for Assets Held for Sale and the ‘presentation and disclosure‘ of Discontinued Operations. In particular, the IFRS requires: IFRS 5 Effective Date An entity shall apply this IFRS for annual periods beginning on or after 1 January 2005. Earlier application … Read More
The ‘OBJECTIVE’ of IFRS 3 is to Improve the relevance, reliability and comparability of the information that a reporting entity provides in its ‘Financial Statements’ about a business combination and its effects. To accomplish that, this IFRS establishes principles and requirements for how the acquirer: IFRS 3 Effective Date This … Read More
The ‘OBJECTIVE’ of IFRS 2 is to Specify the ‘financial reporting’ by an entity when it undertakes a share‑based payment transaction. In particular, it requires an entity to reflect in its profit or loss and financial position the effects of share‑based payment transactions, INCLUDING expenses associated with transactions in which ‘share options‘ are … Read More