Accounting of leases under IFRS 16
Lease accounting is the method of recording and reporting on all of the leased property, equipment, and other non-owned assets that a business or other organization holds. Generally, these contracts are categorized as either operating leases or finance leases.
Under the latest lease accounting standards —IFRS 16, these leases and similar contracts must now be accounted for as assets and liabilities on the balance sheet.
|Accounting by lessees
||Accounting by lessors
|For a contract that is or contains a lease a lessee is required to recognize at the commencement date of a lease|
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Employee benefits refer to all forms of compensation (cash/non-cash) paid by an employer to employee apart from salary/wages for the service provided to the employer. Offering employee benefits are essential to attract and retain the talent for the company.
Ind AS-19 deals with accounting of employee benefits
The standard requires an entity to recognize:
- Payroll liability when an employee provides service in exchange for benefits to be paid in the future; and
- Expense when the entity makes use of the benefit derived from service provided by an employee in exchange for benefits to be provided to an employee.
Short term … Read more
Inventories are assets- held for sale within the ordinary course of business; in the process of production for such sale or assets in the form of materials; supplies to be consumed within the production process or in the rendering of services.
Indian Accounting Standard 2 provides the principles for measurement of inventories, recognition of inventories as expense and disclosure of inventories etc. The objective of the standard is to prescribe the treatment of accounting for inventories. While accounting for inventories an entity needs to recognize the costs and amount to be carried forward until the related revenues are recognized. The … Read more
Consolidated financial statements (or usually abbreviated as CFSs) are defined as the financial statements in which the company’s financial statements, as well as financial statements for all of its subsidiaries, divisions, or sub-organizations, are combined and presented as being those of a sole business entity.
What is the purpose of consolidated financial statements?
Consolidated financial statements play an integral part in the accounting process and help in reviewing the overall financial position of the entire group altogether. It is of utmost significance from the viewpoint of creditors and shareholders of the parent company. It is always presumed that consolidated … Read more
ASC 606 is the new revenue recognition standard in US GAAP that has significantly affected the revenue recognition practices of most companies in United States. It provides a comprehensive, industry-neutral revenue recognition model intended to increase financial statement comparability across companies and industries. The standard affects all businesses that enter into contracts with customers to transfer goods or services whether public, private and non-profit entities unless those contracts are within the scope of other standards (for example: leases and insurance contracts). Both the public and private companies should comply with be ASC 606. It focuses on recognizing revenue more consistently. … Read more
Ind AS 12 prescribes accounting treatment for income taxes. The principal issue in accounting for income taxes is how to account for the current and future tax consequences of future recovery of the carrying amount of assets (liabilities) that are recognized in an entity’s balance sheet and transactions and other events of the current period that are recognized in an entity’s financial statements.
Notable changes were made in Ind AS 12 in comparison to AS 22. Considering the time constraint and for ease of understanding it is important to address only those issues which are imperative for the one’s understanding. … Read more
An accounting standard is a common set of principles, standards and procedures that define the basis of financial accounting policies and practices. Accounting standards are adopted by companies in India and issued under the supervision of Accounting Standards Board (ASB) which is a committee under Institute of Chartered Accountants of India (ICAI) consisting of representatives from government department, academicians, other professional bodies viz. ICAI, representatives from ASSOCHAM, CII, FICCI, etc.
Ind AS stands for Indian Accounting Standard and are converged standards for IFRS (International Financial Reporting Standards). Before the introduction of Ind AS, financial statements were prepared on the basis … Read more
Accurate bookkeeping and accounting are not optional for successful businesses, but hiring a full time accounting staff to keep your company’s books can be expensive.
While every business needs the financial data that accountants and bookkeepers prepare in order to fulfill regulatory obligations and make solid business decisions, incurring the cost of a full time staff to prepare that data may not be a very good business decision at all.
Outsourcing this work to a Raleigh CPA firm can mean having the expert financial services that you need anytime while enjoying significant savings.
Top Benefits you Get from Outsourcing your … Read more
Business owners in need of reliable accounting services should ensure to hire accomplished accountants. It is quite easy to obtain bookkeeping services because there are practicing individuals as well as companies. The work demands in your accounting department will determine the kind of professional to be hired. When looking for reliable bookkeeping services Coral Springs FL accountants are obtainable online
At Reliable Bookkeeping Services, we look for long term relationships. Bookkeeping is not the most exciting task and bookkeepers also like excitement and once internal bookkeeper learns all about your business, they stop learning and that leads to boredom … Read more
Cost accounting involves the techniques for:
1. determining the costs of products, processes, projects, etc. in order to report the correct amounts on the financial statements, and
2. assisting management in making decisions and in the planning and control of an organization.
For example, cost accounting is used to compute the unit cost of a manufacturer’s products in order to report the cost of inventory on its balance sheet and the cost of goods sold on its income statement. This is achieved with techniques such as the allocation of manufacturing overhead costs and through the use of process costing, operations … Read more
Accounting is a vast and dynamic profession and is constantly adapting itself to the specific and varying needs of its users. Over the past few decades, accountancy has branched out into different types of accounting to cater for the diversity of needs.
Financial Accounting, or financial reporting, is the process of producing information for external use usually in the form of financial statements. Financial statements reflect an entity’s past performance and current position based on a set of standards and guidelines. GAAP refers to the standard framework of guideline for financial accounting used in any given jurisdiction. This generally … Read more
If you’re running a business, it doesn’t matter whether you’re an independent contractor or a growing company, managing accounts payable is a key part of your everyday business administration. Accounts payable is the process of tracking money owed by your business to suppliers. As your business grows, so does the complexity of your accounts payable process.
The term bookkeeping means different things to different people:
- Some people think that bookkeeping is the same as accounting. They assume that keeping a company’s books and preparing its financial statements and tax reports are all part of bookkeeping.
- Others see bookkeeping as
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Bookkeeping is necessary in every business whether it is a small or large scale business. As a small business owner, following basic accounting principles is essential for success, record-keeping and financial analysis is key to not only monitoring your expenses, but to discovering new avenues of growth. In addition, it ensures you stay responsible for tax obligations to the government and to your employees.
Accounting closely monitors your accounts receivable to illustrate trends or behaviours in your customer base. It can also cut down on the costs you incur by pursuing late payers. Establishing a detailed budget to help discover … Read more
1. Download the Bank Statements using Online Banking Website in PDF format.
2. Convert the Bank Statements from PDF to excel/ csv format using any software like Adobe
3. Delete those transactions which are already appearing in Quickbooks and identify transactions
which are yet to be uploaded.
4. For those transactions which are yet to be uploaded, prepare a csv file containing the following
1) Date in format MM/DD/YY
3) Amount: All debit amounts should be negative and all credit amounts should be
5. Go to website: qbo.intuit.com
6. Enter User ID and … Read more