Limitations of Accounting, Disadvantages of Accounting (Detailed)
Limitations of Accounting, What are the Limitations of Accounting: Accounting is not fully exact: Accounting is influenced by the personal judgment in respect of various terms.People
Limitations of Accounting, What are the Limitations of Accounting: Accounting is not fully exact: Accounting is influenced by the personal judgment in respect of various terms.People
Accounting Standard 16 – Accounting for Borrowing Costs (AS 16). This Standard should be applied in accounting for borrowing costs. This Standard does not deal
Balancing Ledger Accounts: Balancing of an account means the process of equalizing the two sides of an account by putting the difference on the side where
Accounting Standard 10 (AS 10) – Accounting for Fixed Assets. The objective of this Standard is to prescribe the accounting treatment for property, plant and
List of Ind AS Notified by MCA – Indian Accounting Standards. Ministry of corporate affairs issued list of Indian Accounting Standards (IndAS), Here we are
Double Entry System of book-keeping has emerged in the process of evolution of various accounting techniques. It is the only scientific system of accounting. According
Petty Cash Book: Payments in cash of small amounts like traveling expenses, postage, carriage etc. are petty cash expenses. These petty cash expenses are recorded in
Rules of Debit and Credit: The left hand side of an account is called the debit side; while the right hand side is called the
What is IASB, FASB, IFRS, Ind AS and US GAAP?. Every individual performs some kind of economic activity. A salaried person gets salary and spends
IND AS 36 Impairment of Assets: The objective of Ind AS 36 is to prescribe the procedures that an entity applies to ensure that its
Accounting standard 2 (AS 2): This Standard deals with the determination of value at which inventories are carried in the financial statements, including the ascertainment
Suspense Account: When a trial balance does not agree, efforts are made to locate errors and rectify them. However, if reason for disagreement of trail
IndAS 2 – The objective of this Standard is to prescribe the accounting treatment for inventories. This Standard provides the guidance for determining the cost
Net Present Value (NPV): Present value of cash flows minus initial investments, The Net Present Value (NPV) method as an investment appraisal or capital budgeting
Rectification of Errors: Every concern is interested in ascertaining its true profit and financial position at the close of the trading year. But inspite of the
Accounts and its Classification (Accounts Classification): The business transactions are recorded in accounts. An account is an individual record of a person, firm, or thing, an
Accounting Standard 13 – Accounting for investments (AS 13).This Standard deals with accounting for investments in the financial statements of enterprises and related disclosure requirements.
Trial Balance methods: A trial balance is a schedule or list of debit and credit balances extracted from various accounts in the ledger including cash
Advantages of Accounting: These advantages usually coincide with the ability for companies to improve operations and overall profitability. Business owners can also create a competitive
Ind AS 8 : Accounting policies, estimates and correction of errors play a major role in the presentation of financial statements. That is why Ind
IndAS 1: Presentation of Financial Statement, In India Presentation of Financial Statement is always governed by Companies Act instead of Accounting Standard. Earlier there is Schedule VI,
Applicability of Accounting standards -The accounting standards aim at improving the quality of financial reporting by promoting comparability, consistency and transparency, in the interests of
IndAS 10 Event Occurring After the Reporting Period. The Standard requires that an entity should not prepare its financial statements on a going concern basis
IFRS An Overview. The term IFRS is an acronym for International financial reporting standards. which means a set of financial reporting standards issued by International
The objective of the IndAS 106 is to specify the financial reporting for the exploration for and evaluation of mineral resources. The exploration and evaluation