Long term benefits
Other long-term employee benefits that could arise include long-term disability payments, anniversary payments or bonus payments which are payable greater than 12 months after the period end.
The treatment for these payments is...
Thresholds of Reportable Segments
An entity must report separately information about an operating segment that meets any of the following quantitative thresholds:
its reported revenue, including external sales and intersegment sales is 10% or more of...
When a company hires staff, the employee provides services to the employer in the form of work. In this article we'll also take a quick look at some of the journal entries you should...
What is a Construction Contract?
A construction contract is a contract specifically negotiated for the construction of an asset, (or combination of assets), that are closely interrelated or interdependent in terms of their design, technology...
What is Revenue?
Revenue is the gross inflow of economic benefits (cash, receivables, other assets) arising from the ordinary operating activities of an enterprise (such as sales of goods, sales of services, interest, royalties, and...
The IASB Conceptual Framework sets out the concepts that underlie the preparation and presentation of financial statements. It's used by the IASB to develop new accounting standards, and provides the reasoning current accounting standards.
Inventories are covered by IAS 2 Inventories, and there are three methods of valuing or measuring the cost of inventory allowed. These are
First in, First Out ('FIFO')
Weighted Average Cost
What Method Should you use...
There are different types of leases depending on what sort of lease arrangement is in place. Here we'll take a look at some of the things you should know.
What is a lease?
A lease is...
Under IAS 18 revenue is measurable at 'the fair value of the consideration received or receivable'.
In essence, this is the fair market price less any discounts or rebates received.
If a sale is a cash...
IAS 18 provides us with criteria for the recognition of revenue relating to: 1. Sale of goods 2. Rendering of services, and 3. Interest, royalties and dividends Let's take a look.
1. Sale of Goods