The concept Consolidated Vs Unconsolidated Financials DEPICTS that Consolidated FS reflect the Financial Statements of ‘Parent Company’ and its ‘Subsidiary/(ies)’ as a SINGLE Economic Entity and Unconsolidated FS reflect the Financial Statements of a ‘SINGLE Entity’. Financial Reporting Accounting Standards Corporate Finance Standards IFRS · US GAAP Contents Overview Consolidated … Read More
IAS 36 STATES the concept of Impairment of Assets which states that an entity’s assets are NOT carried at more than their recoverable amount (i.e. the higher of fair value LESS costs of disposal and value in use). Overview Scope Indicators Recoverable Amount CGUs & Goodwill Recognition Reversal Disclosures FAQs IFRS … Read More
The concept Provision Vs Contingent Liability DESCRIBES that ‘Provision‘ is a liability that is recognized in the financial statements when a company has a probable obligation or a present obligation and ‘Contingent Liability‘ is a potential liability that may arise from past events but is uncertain in terms of its … Read More
ISA 560 DEALS with the auditor’s responsibilities RELATING to subsequent events in an ‘Audit‘ of Financial Statements. IAASB · International Standard on Auditing Effective: Periods beginning on or after 15 Dec 2009 Issued by IAASB · IFAC Read with ISA 200 & IAS 10 Contents Overview & Objective Key Definitions … Read More
Provision In Accounting a ‘Concept‘ as per IAS 37 represent a company’s estimated liabilities or obligations, which are RECOGNIZED in financial statements as an expense and liability. Provisions are typically CREATED when there is uncertainty about the amount or timing of a liability, but the company has a legal or … Read More
The concept Associate Vs Subsidiary EXPLAINS the ‘Associate’ in which another Co. has a SIGNIFICANT ownership stake, and ‘Subsidiary’ that is owned and CONTROLLED by another Co. Corporate Structures · Ownership · Accounting 🏛 IFRS & GAAP Aligned Table of Contents Definitions at a Glance Ownership Thresholds Control & Influence … Read More
ISA 701 DEALS with the auditor’s responsibility to COMMUNICATE ‘Key Audit Matter(s)’ in the auditor’s report. IAASB · International Standard on Auditing Issued: January 2015 Effective: 15 December 2016 Issued by: IAASB ISA 701 establishes the auditor’s responsibility to communicate Key Audit Matters (KAM) in the independent auditor’s report; enhancing … Read More
ISA 240 (Revised) DEALS with the auditor’s responsibilities relating to FRAUD in an ‘Audit‘ of Financial Statements. ● IAASB Auditing Standard Issuing Body IAASB / IFAC Effective Date 15 December 2026 Last Revised 2025 (ISA 240 Revised) Replaces Extant ISA 240 (2009) At a Glance Addresses both fraudulent financial reporting … Read More
Equity Method of Accounting is used when the parent company owns between 20% and 50% of the outstanding shares of the entity (i.e. Associate). It is an accounting technique to CONSOLIDATE financial statements of companies where one company has significant influence over another company. The method allows the Parent company … Read More
FVOCI Vs FVTPL are key classification categories under IFRS 9 that determine how Financial Assets are Measured and Reported. While FVOCI (Fair Value Through Other Comprehensive Income) records value changes outside profit or loss, FVTPL (Fair Value Through Profit or Loss) directly ‘impacts earnings‘. Understanding the Difference between FVOCI and … Read More