IFRS 6 – Exploration for and Evaluation of Mineral Resources
IFRS 6 outlines the accounting treatment for the mineral resource exploration and evaluation, for mining, oil, and gas companies to recognize related expenses. The standard permits entities to use their current accounting policies temporarily while establishing principles for treating exploration costs as assets or expenses. It is important for natural resources companies to understand IFRS […]
IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations
IFRS 5 offers guidance on the classification, measurement, and disclosure of non-current assets held for sale and discontinued operations. The standard ensures that assets to be sold are disclosed separately in financial reports and measured at the lower of their carrying amount or fair value less costs to sell. Moreover, IFRS 5 also prescribes detailed […]
Meaning and Objectives of Preparing Cash Flow Statement
Cash is critical to a business’s economic life. A business requires cash to pay suppliers, incur daily expenses, and pay salaries, wages, interest, and dividends, among other things. Indeed, capital is to a commercial enterprise what blood is to a physical organism. As a result, it is critical for a firm to keep a healthy […]