Author Archives: Karl

Property, plant and equipment schedules template – depreciation

Property, plant and equipment schedules template includes a line named as “Depreciation charge”. You may also have seen “Amortization” and simple “Depreciation” used. The meaning stays the same, so there’s really no difference in terms of which to use, but the questions “What this depreciation is?” still remains. So with this post I’ll try to answer to this very same question.

As mentioned in one of our previous posts about property, plant and equipment, with the initial recognition management gives an estimated useful life to an asset. In addition to useful life certain assets may in the eyes of management have a residual value, which can be collected from disposal of the asset. Usually such residual value is applicable in case of buildings or large machinery in which case the residual value is material to the financial statements. On lot of cases say for an example from disposal of a computer that operates you may collect some proceeds; however estimating them is really inefficient and not always precise. So, we have determined the estimated useful life and say the residual value as well. What happens next?
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Property, plant and equipment schedules template – acquisitions

Property, plant and equipment schedules template includes a line named as “Additions”. The synonym for this word is also “Acquisitions”. You may come across both of them, but just so you’d know, we’ll explain a bit the conditions for recognizing an assets as an addition to PPE and little insight as to how to do it.
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Property, plant and equipment schedules template – what are property, plant and equipment?

Property, plant and equipment schedules template is quite detail and includes a lot of numbers. While we are covering all of them in our future posts, let’s first clear the air around the term itself. What is meant under “property, plant and equipment” (hereinafter called as “PPE”) and what is the general accounting rules surrounding them?
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Statement of Cash Flows Template – Cash flows from operating activities

Statement of Cash Flows Template includes a section called “Cash flows from operating activities” or as we have called it in our previous posts, “Operational cash flows”. Either way you call it, is fine. But what is this “Operational cash flow”, what’s included and how are they measured?

The IFRS under which also our Statement of Cash Flows Template is prepared defines operating cash flow as cash generated from operations less taxation and interest paid, investment income received and less dividends paid. Note that interest paid and interest and dividends received are usually shown under operational cash flows, though they may also be disclosed under financing activities. In addition, dividends paid may also be shown under both operational and financing activities. For an example by showing them under operating activities it represents the ability to pay dividends to owners from cash generated through ”business as usual” activities.
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Statement of Cash Flows Template – Why would you need a statement of cash flows?

Statement of Cash Flows Template is an example prepared under IFRS and meant to be added to an annual report. As its one of the four basic statements required by most GAAPs, you really cannot underestimate the need to know why it’s required. Note however, that there are different types of cash flows as there are usages. The one on the annual report is meant for reflecting a previous period results, however there are cash flows also projected for future purposes as well.
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Statement of Cash Flows Template – What is a cash flow?

Statement of Cash Flows Template is an example cash flow reporting prepared under IFRS. While balance sheet and income statement is prepared on accrual basis, the Statement of Cash Flows reports actual cash transactions in and out of a company. That said, with this post I would like to introduce you in more detail to the term “cash flow”.
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IFRS Income Statement Template – Revenue recognition

IFRS Income Statement Template is an example income statement prepared under IFRS reporting guidelines and hence it would make sense to discuss more about the revenue recognition policies used under IFRS. As you already may know revenue can basically arise from selling goods or rendering services. Gains (I would not call it “revenue”) can be earned from dividends, interests etc. While the policies surrounding different types of revenues are varying and fairly detailed in IFRS, we’ll bring you the highlights and basic rules.
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