Jhanzayb (ACA)
Reversal of Impairment Loss is INCREASING the value of a previously Impaired asset when there is a change in circumstances indicating that the ‘Impairment Loss’ is NO longer necessary. IAS 36 · IFRS · Financial Reporting Table of Contents What Is Reversal of Impairment Loss? Conditions for Reversal The Reversal … Read More
Lessor Accounting focuses on how asset owners recognize lease income, classify leases, and report financial performance under modern standards like IFRS 16. It involves distinguishing between Finance and Operating leases, each with different recognition and measurement approaches. Understanding lessor accounting is essential for accurate financial reporting and compliance. Learn how … Read More
ISA 706 (Revised) DEALS with additional communication in the auditor’s report when the auditor CONSIDERS it necessary to Include (a) Emphasis of Matter Paragraph, AND (b) Other Matter Paragraph. IAASB Standard · ISA 706 (Revised) Effective Date Dec 15, 2016 Issued By IAASB / IFAC Paragraph Types EOM · OM … Read More
Vision and Mission Statement a Concept that STATES ‘Vision’ Represents a desired optimal future state of what the organization wants to achieve over time; AND ‘Mission’ is the purpose of an organization and the reason for its existence. Strategic Foundations In this guide What They Are Vision vs. Mission Why … Read More
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
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