RSSCategory: Study Articles

Accounting for Leases and Hire Purchase Contracts

| April 22, 2010 | 0 Comments

In this article we take a look at the accounting treatment for leases and Hire Purchase contracts from the perspective of both the lessee and the lessor. Accounting for leases and hire purchase contracts are dealt with in the provisions in SSAP 21 'Accounting for Leases and Hire Purchase Contracts' and IAS 17 'Leases'.  In […]

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Dealing with Foreign Exchange Transactions

| March 7, 2010 | 0 Comments

In this article, Steve Collings discusses the method used to deal with foreign exchange transactions under the prescribed standard, IAS 21. Students dealing with financial reporting papers will often come across issues relating to the buying and selling of goods and services to other entities who are located in overseas locations : such transactions will […]

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Provisions and Contingencies

| March 7, 2010 | 0 Comments

Provisions, contingent liabilities and contingent assets can often cause confusion among accountants, particularly in deciphering when to recognise a provision or disclosing a contingency.  This article looks at the provisions laid down in FRS 12 and IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and FRS 21 / IAS 10 ‘Events After the Reporting Date’ […]

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IFRS 9 – Financial Instruments

| February 10, 2010 | 0 Comments

In this article, Steve Collings provides a summary of the new standard issued in November 2009, that of IFRS 9 'Financial Instruments' which is due to replace IAS 39 'Financial Instruments: Recognition and Measurement'. The International Accounting Standards Board (IASB) is in the process of revising the way that entities account for their financial instruments.  […]

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IFRS 5 – Non-Current Assets Held for Sale and Discontinued Operations

| February 4, 2010 | 0 Comments

In this article, Steve Collings looks at how an entity should account for non-current assets which have been classified as held for sale. The objective of IFRS 5 is to specify how assets that both qualify for, and are treated as, ‘held for sale’ should be presented and disclosed within a set of financial statements. […]

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More Practical Questions and Answers

| January 25, 2010 | 0 Comments

Steve Collings offers some more practical solutions to frequently asked technical queries as some areas of financial reporting are particularly complex and in many cases accountants will revert back to official standards or publications which may result in complexities becoming even more confusing.   Q: I have a building which is carried in the balance […]

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Question Time With Steve – January 2010

| January 11, 2010 | 0 Comments

Some areas of financial reporting are particularly complex and in many cases accountants will revert back to official standards or publications which may result in complexities becoming even more confusing. In this, and subsequent articles, I will look at a couple of the most commonly asked questions concerning areas of financial reporting which pose difficulties […]

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ISA 500 – Audit Evidence

| January 6, 2010 | 0 Comments

In this article, Steve Collings looks at ISA 500 which has been redrafted as part of the IAASB’s ‘Clarity Project’ and considers what constitutes audit evidence and how such evidence should be recorded in an audit file. ISA 500 stipulates what constitutes audit evidence and lays down the guidance which auditors are required to follow […]

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Share Based Payments

| December 7, 2009 | 0 Comments

In this article, Steve Collings outlines the requirements of IFRS 2 ‘Share-Based Payment’ and considers the implications on the financial statements of an entity entering into such a transactions. The objective of IFRS 2 is to outline the financial reporting requirements that an entity who engages in share-based payment transactions should comply with in their […]

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New VAT Regulations

| November 22, 2009 | 0 Comments

Steve Collings outlines new regulations issued by HM Revenue and Customs in connection with filing VAT returns. The Government has now moved forward with their plans to make filing VAT returns electronically mandatory from April next year. This requirement will affect all businesses with an annual turnover of more than £100,000. This results in the […]

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