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Tag Archives: Financial Accounting

Difference Between Functional Currency And Presentation Currency

A parent entity might have subsidiaries that are located in a foreign country. In many cases, the financial statements of the foreign subsidiary are prepared in the currency of the foreign country. In order for the financial statements of the foreign operation to be included in the consolidated financial statements of the parent entity , it is necessary to translate the foreign operation’s financial statements to the currency used by the parent entity for reporting purposes. Functional Currency And Presentation Currency Para 3 of IAS 21 notes that its two …

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Top 10 Best Accounting Firms in Quebec (2016)

Best Accounting Firms

Here are the Top 10 of the biggest and best law accountants in Quebec as of January 2014. These are classified on approximate measures of the number of employees in Quebec, Canada, and the number of partners. Of course, the classification does not reflect the quality of services offered by the firms, but their size relative to other accounting firms in Quebec. The ranking is established according to statistics released by organizations and is not influenced by an editorial opinion. Best Accounting Firms in Quebec 1. Raymond Chabot Grant Thornton …

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Top 7 Best Accounting Firms in France (2016)

Top 7 Best Accountanting Firms

We present the Top 7 biggest and best law Accountants in France as of January 2014. These are classified on the 2006 and 2011 statistics and ranking is done according to the annual turnover excluding tax (VAT) in France. The number of employees is only informative criterion. In the list are, as you can imagine, the Big Four accounting firms and other smaller but efficient firms. The ranking is established according to statistics released by organizations and is not influenced by an editor. The ranking does not reflect the quality …

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5 Qualities for Being a Good Accountant

Qualities for Being a Good Accountant

What are the qualities that make a good accountant? Answering this question is not easy. Indeed, it is often a source of discussion and interpretation. Perhaps the answer depends on it to the customer or the person with whom you talk. Whether to hire your next employee or to improve the quality of your work, it is important to ask the question. We try to answer in this article using 5 large core qualities. Yet we must not see this article as a presenting the five essential qualities it takes …

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Accounting for An Onerous Contract as per IFRS

onerous contract

Accounting for An Onerous Contract Onerous contract: An onerous contract is a type of contracts in which the aggregate cost necessary to fulfill the agreement is higher than the economic benefit to be obtained from the same. Such a contract can represent a main financial burden for an entity. Here is an example of onerous contract, for you. Celestron enters into a supply agreement with Meade on 1 January 2014. The agreement states that Celestron must supply Meade with 100 Telescopes at a price of $150 per Telescope. The agreement …

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Importance of Cash Flow Statement to Investors

cash flow statement

Generally, all investors, creditors and other stakeholders of an entity want to get cash out of their investment. Therefore, information about an entity’s receipts and payments is of primary importance to such users of financial statements. The statement of cash flows  (otherwise cash flow statement) provides this information by reporting cash inflows and outflows classified into operating, investing and financing activities, and the net movement in cash and cash equivalents during the period. IAS 7 Statement of Cash Flows (otherwise cash flow statement) prescribes that a statement of cash flows …

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How Would You Measure Fair Value Of Assets In This Circumstances

how to measure fair value

Mr. Braxton owned a big house on a large piece of land in Rome. The property had been in his family since around 1895. Mr. Braxton was 80 years old and was not sufficiently expert on taking care of his large property. He sought to move into a retirement village and so he sold his property to the Miracle Group which was an association of Physicians. The Physicians wanted to use the house for their medical practice as it was centrally located and had many rooms, had an atmosphere that …

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Items of Statement of Profit or Loss And Other Comprehensive Income

Items of Statement of Profit or Loss | Decision Usefulness In Conceptual Framework | profitability analysis

Items of Statement of Profit or Loss And Other Comprehensive Income are given and described shortly below. • Income and expenses. In common, these are converted at the rates current at the dates the applicable transactions occur. For items that relate to non-monetary items, such as depreciation and amortization, the rates used are those used to convert the related non-monetary items. • Dividends paid. These are converted at the rate current at the date of payment. • Dividends declared. These are converted at the rate current at the date of …

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Items of Statement of Financial Position or Balance Sheet

Statement of Financial Position

The following are the items of Statement of Financial Position or Balance Sheet. They are described shortly. • Assets. Assets should primarily be classified as monetary or non-monetary assets. Monetary assets are translated at the current rate existing at the end of the reporting period. With a non-monetary asset, the exchange rate used is that current at the date at which the recorded amount for the asset has been entered into the accounts. Therefore, for non-monetary assets recorded at historical cost, the rates used are those existing when the historical …

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How Did IFRS 13 Define The Transport Costs?

Transport Costs

Let us see, How IFRS 13 Defined The Transport Costs. Transport costs are defined in Appendix A of IFRS 13 as  ” The costs that would be incurred to transport an asset from its current location to its principal (or most advantageous) market.”  Both transaction and transport costs have an effect on the determination of the fair value of an asset or liability. When determining the principal (or most advantageous) market where an asset may be sold, the level of transaction costs will be considered. In common, lower transaction costs …

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