Financial Accounting

Differences between FINANCIAL and MANAGEMENT ACCOUNTING

Differences between FINANCIAL and MANAGEMENT ACCOUNTING

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Management Accounting Management also known as cost accounting is system of identifying, recording, analyzing and presenting data relating to organization’s own products/services, with main focus on entity’s internal system, cost accounting helps the helps at three namely planning, control and decision making: Management accounting gathers cost information and relates it to cost objects, cost centers, …

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HOW TO CALCULLATE WEIGHTED AVERAGE COST OF CAPITAL

WEIGHTED AVERAGE COST OF CAPITAL

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Weighted Average Cost of capital (WACC) is a capital that the company raises from various sources which include raising money through listing the company shares on the stock exchange (Equity), preferred stock, or by interest-paying bond or taking commercial loans (debt). The cost of each type of capital is weighted by its percentage of total …

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REVALUATION OF FIXED ASSETS

REVALUATION OF FIXED ASSETS

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Fixed assets revaluation is the process of adjusting to increasing or decreasing the carrying value of the assets. IAS 16 of the International financial reporting standard (IFRS) refers that initially fixed assets to be recorded at a cost but IFRS allows two models for subsequent accounting for fixed assets, cost model, or revaluation model. Cost …

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ACCOUNTING FOR PURCHASE OF FIXED ASSETS- www.accacoach.com

ACCOUNTING FOR PURCHASE OF FIXED ASSETS

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Lump-sum Purchase of Fixed Assets means the purchase of different types of fixed assets, such as real estate, factories, and equipment in exchange for a single payment. Lump-sum purchase of fixed assets is very common because fixed assets (such as land, machinery, and equipment) are usually added and inseparable. The accounting standard like the International …

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HOW TO ACCOUNT FOR WARRANTIES - WARRANTY PAYABLE- www.accacoach.com

How to Account for Warranties – Warranty Payable

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Warranty payable is the obligation of the company to repair or replace the defective products purchased by the customers. Warranty Payable arises when the company sells products that the customer has the right to return for repair or direct replacement. The accounting of warranties is very similar to accounting for bad debts and doubtful debts. …

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