Once your company is applying for a government grant or it’s being offered assistance, it’s important to understand when exactly you can recognize the grant on the financial statements. Note here that accounting frameworks may differ with that regard in details, however the general principle applied is the same. Continue reading
Author Archives: Karl
Defining grants and government assistance
In order for us to be on the same page, before we can move on, it’s important to define the words ‘government assistance’ and ‘grant’. Continue reading
Articles of association
Articles of association aren’t just some complicated words put on a piece of paper. It’s also not just something required by legislative framework the company is incorporated. Continue reading
Statutory requirements of owner’s equity
There isn’t much happening on equity accounts, if don’t include the main account that impacts total equity daily. Yes, the capital, the share premium, other reserves are as they are with very rarely changes happening to them. However, something to watch out for regardless is the level of those accounts and total equity just as well. Continue reading
Disclosing loan payables on the statement of cash flows
Money that you’re lending from someone is extra funding you’re getting for your business, for your company. It’s essentially called ‘external capital’ – external since it’s not paid into the company by the owners and capital since it’s funds given to be used either for investing, for financing everyday activities etc. It’s also said that a healthy company is using about 2/3 of ‘external capital’ and 1/3 of its own capital (that is capital paid into and not taken out as dividends by the owners). Continue reading
Measuring performance results against expectations
Are people just working for you or do you know if they’re working for a goal? Working for a cause is always more meaningful obviously, but also more efficient when it comes to measuring people’s performance. Continue reading
Reporting payments to personnel on the statement of cash flows
When it comes to showing your payroll expenses and why not all expenses relating to personnel, i.e. taxes paid, benefit plans, fringe benefits and so on, the question arising is how to show those expenses on the statement of cash flows. Continue reading