Affidea selects Planon to comply with Lease Accounting standard IFRS 16 Affidea Group has selected Planon’s Lease Accounting solution to comply with IFRS 16, the standard replacing IAS 17. Accounting firm KPMG is advising Affidea as skilled implementation partner, ensuring a smooth, compliant and...
How could the different valuation methods of U.S. GAAP and IFRS affect the probability of fraud occurring in valuing assets and liabilities? a. What is the difference between a current liability and a contingent liability? Give an example of each. b...
Once a company adopts an accounting principle or method, it should stick to it so that future changes are easily compared. Cost Principle Anasset, liability, or equity investment must be recorded at its original purchase cost. Economic Entity Principle ...
Impairment Losses:When the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognized. This write off reflects the reduction in the value of assets and is crucial for maintaining accuracy in financial reporting. Restructuring Costs:Expenses incurred during organizational...
Asset devaluation affects the carrying value of an asset on a company's balance sheet, and it is necessary to recognize this decrease in value by impairing the asset. Impairment charges are typically recorded in the income statement, reducing the net income and overall financial performance of th...
Depreciationis an accounting technique that allows companies to spread the cost of afixed assetover itsuseful life, rather than expensing the entire amount in the year it was purchased. Otherwise, the company's profit picture for that year could look unrealistically bleak. In addition, the Interna...
According to the fundamental principle of intrinsic value, how does a firm value an asset? The statement of member's equity is used by what kind of business entity? Explain the revenue recognition principle. How does this principle help a company report how it is truly performing financially?
3. Interpretation and Judgments:Financial reporting involves certain areas that require interpretation and judgments. For example, determining the useful life of an asset or estimating the provision for doubtful debts. Differences in interpretations and judgments may lead to inconsistencies in financial repo...
Click here to start selling with ShopifyWhat is inventory valuation? Inventory valuation is the cost associated with unsold inventory at the end of a reporting period. Since inventory is often the largest asset a company owns, it’s important to consistently measure its value. Understanding your ...
“What is the difference between contract asset and an account receivable? I know that contract asset is a new term under IFRS 15, but I just don’t understand when we should account for a contract asset and when to account for a trade receivable. Isn’t it the same?” IFRS Answer: ...