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International Accounting Standards

17.02.2010 03:07 EST
IAS18(AC111)-Objective>prescribes recognition,measurement and discloser of revenue>specifically when revenue should be recognised.Deals with the issue when revenue should be recognised.Accountin treatment of revenue arises from the following events-sale of goods(revenue),rendering of services and use by other assets of the entity,yielding interest,royalties and dividends.REVENUE-defined as gross inflow of economic benefits during period,that arises in the course of the ordinary activities of the entity,and that results in increase in equity,excluding contributions of equity participants.MEASUREMENT-It is measured at fair value of the consideration received or receivable.Fair value is amount at which an asset could be exchanged or a liability could be settled between knowledgeable willing parties in an arm's length transaction.It dependent on the substance of the transaction,not on the legal form.IAS36(ac32- Objective:prescribe the recognition,measurement and disclosure of impairement of assets.Prevent the over statement of assets in the financial statements.NATURE OF IMPAIREMENT:An impairement loss is da amount by which da carrying amount of an asset exceeds its recoverable amount.Indication that the full carrying amount of da asset will probably not be recovered in da future,either through sales or through use.Only test for impairement if an indication exist from external or internal source that the asset may only be impaired.IAS36(AC 128)Address when impairement loss will be recognised for individual assets and the disclosure required for impairement losses and impaired assets.IAS36(ac128) applies mainly to:tangible and intangible assets:investment in subsidiaries:joint ventures and associate.

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