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GAAP / International Financial Reporting Standards
Generally Accepted Accounting Principles (GAAP) is an international recognized and accepted concept of standard framework and rules to ensure uniform financial reporting across the globe. GAAP is the general term…
Financial Reporting Standards
Financial reporting standards are periodically issued by International Financial Reporting Standard Board. These standards are meant to ensure uniformity in financial reporting to protect the interests of the investors worldwide….
What is Accountant?
In history landlords used to appoint a literate person to write their financial information and to maintain accounts of their customers. The reason behind was that landlords himself were not…
Fair Value Accounting
Assets are shown in the balance sheet at the historical cost i.e. cost at which they were acquired. But it is not the case always that the assets presenting the…
Matching Principle
According to the matching principle of accounting expenses of the same period must be compared to or deducted from the income of that period to ascertain profitability. It is the…
BookKeeping
Bookkeeping is the recording of financial transactions such as sales, purchases, receipts, and payments. The person liable to record is named as book keeper or accounting clerk. Book keeper is…
Bank Reconciliation
A statement of reconciling the balances between bank book and bank statement is called bank reconciliation statement. Bank book is maintained by the customer or account holder in his/her (usually…
Double Entry System in Accounting
A double entry system of accounting was devised with the concept that each transaction has dual effect. Two effects of each transaction are recorded on the basis of universally accepted…
Cash and Accrual Basis of Accounting
Cash basis of Accounting In cash basis of accounting the prevailing concept is that transactions will be entertained on the actual receipt or payment of cash. More broadly income will…
Revenue Recognition
When does revenue should be recognized in the books of accounts? The answer to this question is covered in IAS 18 Revenue Recognition under the generally accepted accounting principles (GAAP)….
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