Revision question on IAS 10 (NBAA May 2017)

how to calculate depreciation according to ias 16

(a) Consider the following list of events that occurred between 31st December 2016(reporting date) and 31st March 2017 (date of authorization of financial statement for issue) and decide which one you would classify as adjusting events and which are non-adjusting events.  You should also state clearly the treatment that you are proposing in each case.
(i) The receipt  of net proceeds of sales TZS 12.600,000 for inventory items whose net realizable value was estimated (31st December 2016) at 12,000,000 and cost was TZS 12,500,000.
(ii) Proposed dividend made by the director’s board meeting on 31st January2017, for a total of TZS 160,000,000,000. read more

What is the International Accounting Standard Board (IASB)?

What is International Accounting Standard Board (IASB)?

The International Accounting Standard Board (IASB) which was set up in April 2001 is independent standard-setting body of IFRS foundation. It replaces the International Accounting Standard Committee (IASC)  which had been setting International Accounting Standard (IAS) since 1973. At the time of its initiation, the IASB adopted in full all existing IASs and decided that all new standards they developed would be called International Financial Reporting Standards (IFRSs) read more

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