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Cost Accounting
How to calculate liquidity ratios?- With examples
The term liquidity refers to the ability of the firm to meet its obligations as and when due. The current liability of the company meets the realising amount fr
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Corporate Accounting
What is the Price Earnings Ratio?
The Price Earnings ratio is defined as a ration that tells investors how much they’re paying for each dollar of a company’s earnings. For example, a
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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
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IFRS
IFRS 11 – Joint Arrangements | Overview
International Financial Reporting Standard (IFRS) 11 prescribes the accounting treatment of joint arrangements, which occur when two or more entities have contr
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Financial Management
What are Avoidable and Unavoidable Costs?
In business and financial planning, knowing avoidable and unavoidable costs is critical to budgeting, cost control, and profitability analysis. Avoidable costs
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Cost Accounting
What is meant by annual holding cost in costing?
Annual Holding Cost or carrying cost refers to the total expense a business incurs to store and manage inventory over a year. It encompasses expenses like wareh
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Financial Accounting Concepts
Meaning and Accounting Treatment of Depreciation
Generally, the term ‘depreciation’ denotes a decrease in value, but in accounting, this term denotes a decrease in the book value of a fixed asset. Becaus
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Financial Management
Factors determining the credit policy of a firm
A company’s credit policy is vital in the management of cash flow, reduction of financial risks, and good customer relations. It establishes the terms upo
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IFRS
IFRS 17 – Insurance Contracts | Overview | Scope | Objectives
IFRS 17 provides guidance on accounting for insurance contracts. It is set to replace IFRS 4, which currently governs accounting for insurance contracts. The pu
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Financial Accounting Concepts
Classification of Accounts in Bookkeeping
Bookkeeping is the basis of financial management. All business transactions must be systematically recorded and categorized in bookkeeping. Classification of ac