Month: June 2007

Technical Summary Of  IFRS 6 Exploration for and Evaluation of Mineral Resources Objective: To specify the financial reporting for the exploration for and evaluation of mineral resources. Exploration and evaluation expenditures are expenditures incurred by an entity in connection with the exploration for and evaluation of mineral resources before the technical feasibility and commercial viability of extracting … Read more

Technical Summary Of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations The objective of this IFRS is to specify the accounting for assets held for sale, and the presentation and disclosure of discontinued operations. In particular, the IFRS requires:  (a) assets that meet the criteria to be classified as held for sale to … Read more

 Technical Summary Of  IFRS 4 Insurance Contracts   The objective of this IFRS is to specify the financial reporting for insurance contracts by any entity that issues such contracts (described in this IFRS as an insurer) until the Board completes the second phase of its project on insurance contracts. In particular, this IFRS requires: (a) limited … Read more

Technical Summary Of IFRS 3 Business Combinations Objective: To specify the financial reporting by an entity when it undertakes a business combination. [ A business combination is the bringing together of separate entities or businesses into one reporting entity. The result of nearly all business combinations is that one entity, the acquirer, obtains control of … Read more

Technical Summary Of  IFRS 2 Share Based Payment Objective of IFRS 2: To specify the financial reporting by an entity when it undertakes a share-based payment transaction. In particular, it requires an entity to reflect in its profit or loss and financial position the effects of share-based payment transactions, including expenses associated with transactions in … Read more

Technical Summary Of  IFRS 1 First-time Adoption of International Financial Reporting Standards   Objective of this IFRS: ·     To ensure that an entity’s first IFRS financial statements, and its interim financial reports for part of the period covered by those financial statements, contain high quality information that:             (a)  is transparent for users and comparable over … Read more

Cash Cash is not confined to only currency notes and coins It includes anything that have receivables by banks as an immediate deposits like cheques, traveler cheques, money orders and postal orders. As cash is the most liquid asset hence it is more exposed to the risk of theft. It is therefore necessary to have … Read more

Difference Between International Financial Reporting Standards (IFRS) & International Accounting Standards (IAS) We often hear about IFRS and IAS. So what are the difference(s) between them and their background? ·      First and foremost, the “I” definitely stands for International. These accounting standards are meant for the global arena supposed to be used by countries worldwide. … Read more

Meaning Of GAAP: In one of my earlier articles, I mentioned FRS, IFRS, IAS, etc. So what really is the difference between those mentioned and GAAP? Simply, Generally Accepted Accounting Principles (GAAP) is the standard framework of guidelines for financial accounting. It includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, … Read more

The standard is the level of attainment accepted by management as the basis upon which standard costs are determined. There are four different standards to consider: Types Definitions Ideal ·      Relates to the most ideal level of attainment achieved if ideal conditions are obtained e.g. best possible prices for materials, most satisfactory rates for … Read more