Professional Documents
Culture Documents
Chapter 6
October 18, 2018
What is in Accounting Standards
• Definitions
• Recognition criteria: when you record entry and how
• Measurement: At which amount you should record the entry
• Post recognition: What treatment to do after first recording
• Presentation: How to present that item in the financial statements
• Disclosure: Which information to disclose in the financial statements
in respect of that item
• Different types of statements • Is expected to be used, sold,
• Statement of financial position realized in normal operating cycle
• Statement of Profit and loss • Is held primarily for trading
Current and Non-Current
Definition of
IAS-1 defines
current assets:
Assets
Land Softwares
Building Patents
Equipment
As per IAS 16, An asset is recognized if
• It is probable that future economic benefits will flow to the
Definitions entity
• And its cost can be measured reliably