Jhanzayb (ACA)

IAS 10 ‘Events After The Reporting Period‘ STATES when events after the end of the reporting period should be adjusted in the financial statements. ‘Adjusting Events‘ are those providing evidence of conditions existing at the end of the reporting period, WHEREAS ‘Non-Adjusting Events‘ are indicative of conditions arising after the reporting period. … Read More

IAS 16 STATES that Property, plant and equipment is Initially Measured at its cost, Subsequently Measured either using a ‘cost or revaluation model‘, and depreciated so that its depreciable amount is allocated on a systematic basis over its useful life. IAS 16 – Key Terms Property, plant and equipment (PPE) are … Read More

SIC 32 concludes that a WEBSITE developed by an entity using internal expenditure, whether for ‘internal or external access’, is an internally generated intangible asset as per IAS 38. SIC 32 Website Costs 1. Issue When ‘accounting for internal expenditure‘ on the development and operation of the entity’s own website for … Read More

IAS 38 STATES the ‘accounting criteria‘ for intangible assets, which are non-monetary assets that are without physical substance and identifiable (EITHER being separable or arising from contractual or other legal rights). IAS 38 – Intangible Assets An Intangible Asset is (a) Identifiable; (b) Non-Monetary Asset; AND (c) Without Physical Substance An … Read More

IAS 23 requires that borrowing costs DIRECTLY attributable to the acquisition, construction or production of a ‘Qualifying Asset’ (one that necessarily takes a substantial period of time to get ready for its intended use or sale) are included in the cost of the asset. Other borrowing costs are RECOGNIZED as … Read More

IAS 20 PRESCRIBES the ‘accounting‘ for and ‘disclosure‘ of government grants and other forms of government assistance. IAS 20 – Key Terms 1. Government Grant Assistance by the government in the form of transfer of resources to the entity in return for past or future compliance with certain conditions relating … 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). IAS 36 Impairment of Assets – Key Definitions 1. Recoverable Amount It is … Read More

Diluted Earnings Per Share (diluted EPS) CALCULATES a company’s earnings per share if all convertible securities were converted. Diluted Earnings Per Share (EPS) Diluted EPS INCLUDES dilutive potential ordinary shares (such as options and convertible instruments) on fulfillment of certain criteria. Except for Basic EPS, an entity should also DISCLOSE diluted EPS. Diluted … Read More

Basic Earnings Per Share as per IAS 33 PRESCRIBES the principles for the determination and presentation of Basic EPS among other considerations to IMPROVE comparison over time and between different companies. Basic Earnings Per Share – What is Basic EPS? Basic EPS is the ‘Monetary Value‘ of earnings per outstanding … Read More

The ‘OBJECTIVE’ of IAS 40 is to prescribe the accounting treatment for Investment Property and related disclosure requirements. IAS 40 Effective Date An entity shall apply this Standard for annual periods beginning on or after 1 January 2005. Earlier application is ‘ENCOURAGED’. If an entity applies this Standard for a period beginning … Read More