Although earnings per share is a very popular performance measurement tool, it is not without its drawback and limitations. Here are four important drawbacks you should know for your IAS 33 EPS studies.
We’ve had a number of requests to produce ACCA F7 Financial Reporting mind maps, so here they are!
Preparing consolidated financial statements can be stressful. It can be difficult to visualise exactly what to do, and where the journal entries to bring everything together should go.
What are accounting policies?
Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements. This article contains some useful information for your IFRS studies.
Departure from accounting standards
In very rare circumstances, an entity may need to produce financial reports which do not comply with a specific accounting standard, if compliance with the standard would be so misleading they do not provide useful information to users, and the financial statements would no longer be fairly presented.
When we look at the statement of comprehensive income, the costs associated with the leased asset held under a finance lease will be:
Let’s take a closer look now at how to calculate the present value of the minimum lease payments.
The asset and liability to be recognised is the lower of the fair value of the leased asset and the present value of minimum lease payments.
Non-current assets are usually measured in the financial statements at cost or a revalued amount, which is depreciated over the asset’s useful economic life.
The requirements for recognising and measuring an impairment loss are as follows: