Written Down Value Method of Depreciation
Depreciation represents the systematic reduction in the value of an asset over its useful life due to wear and tear, usage, or obsolescence. It helps in presenting a fair and realistic value of assets in the financial statements. There are various methods to calculate it, and the Written Down Value (WDV) Method, also known as […]
Common Mistakes Students Make While Calculating Depreciation
Depreciation is one of the foundational concepts in accounting that helps allocate the cost of a tangible asset over its useful life. Despite being a routine topic in financial reporting, many students commit recurring mistakes when calculating it. These errors distort profit figures and asset values, undermining the accuracy of financial statements. Calculating depreciation demands […]
Depreciation, Amortisation, and Depletion: What’s the Difference?
Every business owns assets — machines, vehicles, buildings, patents, and natural resources — that help it generate revenue. But these assets don’t last forever. Over time, they lose value as they are used, age, or become obsolete. Accounting standards require companies to systematically record this loss in value through three key processes: depreciation, amortisation, and […]
What Is a Fractional CFO and Why Every Growing Business Needs One
In business world, financial expertise is no longer a luxury — it is a necessity. Yet, hiring a full-time Chief Financial Officer (CFO) is beyond the budget of many small and medium enterprises (SMEs) and start-ups. That is where a Fractional CFO steps in. The concept has gained tremendous traction across the United States, Europe, […]
5 Key Aspects of Technical Analysis of Shares
Technical analysis is one of the most widely used approaches for evaluating and predicting stock price movements. Unlike fundamental analysis, which focuses on a company’s financial statements and overall business health, technical analysis relies on historical price data, trading volumes, and chart patterns to anticipate future trends. The main idea is that market prices reflect […]
What is an Initial Public Offer (IPO)?
An Initial Public Offer is the process by which a private company sells its shares to the public for the first time and become a publicly traded company. The process not only provides a company with access to vast funding opportunities but also offers investors a chance to own a part of a growing business. […]
Only 2 GST Rates Now – Relief for Consumers and Businesses
In a major move, the Goods and Services Tax (GST) Council has approved a plan to reduce the number of GST rates to just two: 5% and 18%. This change, which is expected to go into effect on September 22, will eliminate the 12% and 28% rates for most items. The decision is aimed at […]
What is the Matching Concept in Accounting
Accounting as a profession is based on a structure of principles and concepts that introduce consistency and dependability into financial statements. Amongst these, the Matching Concept plays a unique role, particularly under the accrual accounting method. The Matching Concept is the concept that all expenses should be accounted for in the same period as the […]
Why Forensic Audit Was Initiated at IndusInd Bank?
Concerns raised over specific derivative transactions have placed IndusInd Bank, the leading private sector lender in India, under regulatory scrutiny. It is claimed that the Reserve Bank of India (RBI) has called for a forensic audit focused on the bank’s operations concerning the design, disclosure, and risk management of the derivatives. While the bank has […]
Operating Profit vs. Gross Profit vs. Net Profit
While reviewing an income statement, you probably noticed the terms gross profit, operating profit, and net profit. But do you understand what differentiates one from the other? Profitability metrics are vital for analyzing a company’s financial condition. Each one of these profits are calculated and tracked at different levels within the income statement and provide […]