Why would you want controls over your payroll expense? This would depend on the number of employees you have, the work they carry out and the complexity of your payroll application. Continue reading
Category Archives: 1 Basic Accounting
Presenting property, plant and equipment as well as intangible assets on the statement of cash flows
Property, plant and equipment and intangible assets for the purpose of presentation on the statement of cash flows are reported partly under all of the three grouping of cash flows a company can have. Since there are many aspects of acquiring and measuring for tangible and intangible assets, it only makes sense they are also disclosed differently. Continue reading
Presenting sales revenue and receivables on the statement of cash flows
Sales revenue and receivables are balances that are reported on statement of cash flows. They are cash movements (mostly at least) and as such, they are most certainly reflected on the statement, however the question of ‘where’ remains. Continue reading
Indications when a receivable balance may be impaired
When you’re reviewing your receivable balances and they may or may not be overdue, there are things to watch out for when assessing their recoverability. Continue reading
Impairment of receivables
Now and again I find it necessary to discuss receivables and their possible impairment. It’s not a question of if this should be done in my eyes, but when. However, let’s discuss both, the ‘if’ and the ‘when’. Continue reading
Grants related to assets
So say that you received a government grant and having been compliant with all the conditions, you receive the grant. You will now recognize it within the financial statements, only you don’t exactly know how to do it. For an example let’s say that the grant itself was for acquiring new equipment for your production. Continue reading
Recognizing grants and government assistance on financial statements
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