Jhanzayb (ACA)
What is the Difference between Assets and Liabilities? a Concept that STATES ‘Assets’ as Economic Resources owned or controlled by an entity to provide future benefits, AND ‘Liabilities’ represent the Obligations or Debts owed by an entity to external parties. Assets (As Per IAS 1) ‘Assets’ are Economic Resources owned … Read More
Contingent Liabilities are potential OBLIGATIONS that may or may not come into existence, depending on the occurrence or non-occurrence of one or more future events that are not entirely within the control of the entity. They are often referred to as “Off-Balance Sheet” items because they are not reflected in … Read More
A Contingent Asset is a potential asset that may only be REALIZED if a certain condition is met. i.e, it is an asset that only has VALUE if a specific event occurs. This event can be internal to a company or external, such as changes in market conditions. Contingent Asset … Read More
ISA 810 (Revised) DEALS with the auditor’s responsibilities RELATING to an engagement to report on ‘Summary Financial Statements’ derived from Financial Statements audited in accordance with ISAs by that Same auditor. ISA 810 (Revised) – Introduction 1. Scope of this ISA It deals with the auditor’s responsibilities relating to an … Read More
ISA 620 (Revised) DEALS with the auditor’s responsibilities RELATING to the work of an individual or organization in a field of expertise OTHER than accounting or auditing, when that work is used to assist the ‘Auditor’ in obtaining sufficient appropriate audit evidence. ISA 620 (Revised) – Introduction 1. Scope of … Read More
ISA 540 (Revised) DEALS with the auditor’s responsibilities RELATING to Accounting Estimates and Related Disclosures in an ‘Audit‘ of Financial Statements. ISA 540 (Revised) – Introduction 1. Scope of this ISA It INCLUDES Requirements and Guidance that refer to or expand on how ISA 315 (Revised), ISA 330, ISA 450, … Read More
ISA 265 DEALS with the auditor’s responsibility to COMMUNICATE appropriately to those charged with governance and Management deficiencies in internal control that the auditor has identified in an ‘Audit’ of Financial Statements. ISA 265 – Introduction 1. Scope of this ISA It does NOT Impose ‘Additional Responsibilities‘ on the auditor … Read More
ISA 250 DEALS with the auditor’s responsibility to CONSIDER laws and regulations in an ‘Audit‘ of Financial Statements. ISA 250 – Introduction 1. Scope of this ISA It does NOT apply to Other Assurance Engagements in which the auditor is specifically engaged to test and report separately on compliance with … Read More
IAS 37 OUTLINES the accounting for provisions (liabilities of uncertain timing or amount), together with contingent assets (possible assets) and contingent liabilities (possible obligations and present obligations that are not probable or not reliably measurable). IAS 37 – Provisions A liability of UNCERTAIN timing or amount. Provisions are RECOGNIZED when all … 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