Each class of non-current assets can be carried at either cost of fair value EXCEPT Goodwill cannot be revalued upwards Identifiable intangibles can be revalued upwards only if an active and liquid market exists Financial instruments are measured at their fair value Agricultural assets are measured at their net market value Carrying amt of non-current …
Carrying value of inventory must be the lower of its cost price and net realisable value This requires a cost flow assumption because inventory can be purchased at different times at different cost prices 2 cost assumptions permitted under IFRSs First-in, first-out (FIFO) Weighted average Having issues with your accounting module? SMS us at +65 …
Carrying amount of receivables is the expected cash to be received Thus the amount owing must be reduced by the amount expected to be uncollectable or allowance for doubtful debits On the balance sheet, receivables are usually shown at their net amount Net amount = gross value – allowance for dd Details gross value and …
The dollar value assigned to assets and liabilities is called their carrying amounts or book values Alternative measurement systems include: Historical cost; i.e., original cost Current cost Market value Present value Current cost and market values measures can be thought of as an item’s fair value Fair value is the amount for which …
Assets are classified according to their nature or function Classifications can reflect Liquidity Marketability Physical characteristics Expected timing of future economic benefits Purpose Liabilities and equity are classified according to their nature Classifications may be based on: Liquidity Level of security of guarantee Expected timing of the future sacrifice Source Conditions attached to the liabilities …
Distinction between current and non-current classification is based on timing If the economic benefits (of asset) or outflow of resources (for liability) are expected to be realised in the next reporting period, the asset or liability is categorised as current If economic benefits (of asset) or outflow of resources (of liability) are expected beyond next …
Essential characteristics for a liability are: A present obligation to another entity The present obligation arises as a result of past events An outflow of resources embodying economic benefits is expected to flow from the entity as a result of settling the present obligation To be recognised as a liability on the balance sheet, the …
Equity is the residual interest in the assets after the liabilities are deducted Equity represents the claim of owner/s on the firm’s assets Equity comprises of various items including Capital contribution by owners Profits retained in the entity Having issues with your accounting module? SMS us at +65 9758-7925 or email: enquiry@starcresto.com
Essential characteristics for an asset are: the resource must be controlled by the entity the resource must be as a result of a past event future economic benefits are expected to flow to the entity from the resource To be recognised as an asset on the balance sheet, the future economic benefits expected to flow …
Presents the financial position of an entity at the reporting date Lists an entity’s assets, liabilities and owner’s equity at reporting date Reflects the assets in which the entity has invested (its investing decisions), and how the entity has financed the assets (its financing decisions) Having issues with your accounting module? SMS us at +65 …