Essential features of assets and liabilities according to IAS 1

International financial reporting standard (IFRS) through the International Accounting Standard Board (IASB) sets out the definition and essential  characteristics of assets and liabilities in the presentation of financial statements which users of the statements are likely to rely on when making major economic decision
The following are essential characteristics of assets and liabilities in accordance with provisions of IAS 1  presentation of financial statements. read more

Six (6) disadvantages of using marginal costing.

Revision question on preparation of cash flow statements.

Marginal Costing is a costing technique wherein the marginal cost, i.e. variable cost is charged to units of cost, while the fixed cost for the period is completely written off against the contribution. read more

Revision question on budgetary slack and preparation of sales forecast.

“At times, subordination may try to play games and build in budgetary slack.” Horngren et al (2009).


  1. What is “budgetary slack” and describe two ways in which subordinates may attempt to create budgetary slack and state how senior managers may reduce the budgetary stack.
  2. Describe the possible reason why subordinates build in budgetary slacks when budgeting.
  1. “Firms with multinational operations face a variety of additional challenges in preparing their budgets.” Hilton (1999).

Describe briefly additional challenges in budgeting that are encountered by firms with multinational operations and how does management accountant address the challenge?
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