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
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
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
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
IFRIC 14 interprets the LIMIT on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. IFRIC 14 Effective Date An entity shall apply this Interpretation for annual periods beginning on or after 1 January 2008. Earlier application is ‘PERMITTED’. IFRIC 14 – Scope This Interpretation applies to all post‑employment … Read More
IFRIC 19 STATES that the De-Recognition of ‘financial liabilities‘ takes place when it is extinguished i.e. when the obligation specified in the contract is discharged or canceled or expired. IFRIC 19 Effective Date An entity shall apply this Interpretation (IFRIC) for annual periods beginning on or after 1 July 2010. Earlier … Read More