RSSArchive for January, 2013

Jan

23

Accounting for intangible fixed assets

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Accounting for intangible fixed assets

The accounting for fixed assets is, in many cases, a straight forward exercise, but it isn’t always as straight forward when it comes to the issue of intangible fixed assets and recognising such assets on the balance sheet.  There have also been challenges by external regulators concerning the issue of capitalising intangible assets where inspectors […]

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Jan

15

Preparing the group statement of cash flows for students

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Preparing the group statement of cash flows for students

Students attempting financial reporting papers will need an awareness of the concept of the statement of cash flows.  Under IFRS, IAS 7 Statement of Cash Flows deals with principles underlying the preparation of such a financial statement.  It is worth mentioning at this point that the statement of cash flows forms part of the primary […]

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Jan

14

New auditor sanctions

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New auditor sanctions

On 21 December 2012, the Financial Reporting Council (FRC) published a Consultation Paper Auditor Regulatory Sanctions Procedure.  The FRC’s Audit Quality Review (AQR) is responsible for the monitoring of audit work for major audits (audits of listed companies and other major bodies).  Recognised Supervisory Bodies (RSBs) are also responsible for ensuring compliance with auditing standards […]

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Jan

7

Accounting for Provisions and Contingencies

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Accounting for Provisions and Contingencies

Before the introduction of accounting standards governing the accounting requirements for provisions, companies were quite able to ‘massage’ the profits (or losses) and report figures which were ‘desired’ as opposed to ‘true and fair’. This particular method of profit manipulation was coined ‘big bath accounting’ and was quite common before the introduction of SSAP 18 […]

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