1. The following terms are used in this Statement with the meanings specified: Employee benefits are all forms of consideration given by an enterprise in exchange for service rendered by employees. Short-term employee benefits are employee benefits (other than termination benefits) which fall due wholly within twelve months after the end of the period in [...]
Archive for the ‘Financial Accounting’ Category
26 Oct
Accounting for Amalgamations
1. An amalgamation may be either – (a) an amalgamation in the nature of merger, or (b) an amalgamation in the nature of purchase. 2. An amalgamation should be considered to be an amalgamation in the nature of merger when all the following conditions are satisfied: (i) All the assets and liabilities of the transferor [...]
26 Oct
Accounting for Investments
1. The following terms are used in this Standard with the meanings assigned: 3.1 Investments are assets held by an enterprise for earning income by way of dividends, interest, and rentals, for capital appreciation, or for other benefits to the investing enterprise. Assets held as stock-in-trade are not ‘investments’. 3.2 A current investment is an [...]
26 Oct
Accounting for Government Grants
1. The following terms are used in this Standard with the meanings specified: 3.1 Government refers to government, government agencies and similar bodies whether local, national or international. 3.2 Government grants are assistance by government in cash or kind to an enterprise for past or future compliance with certain conditions. They exclude those forms of [...]
26 Oct
The Effects of Changes in Foreign Exchange Rates
1. This Standard shall be applied: (a) in accounting for transactions and balances in foreign currencies, except for those derivatives transactions and balances that are within the scope of HKAS 39 Financial Instruments: Recognition and Measurement; (b) in translating the results and financial position of foreign operations that are included in the financial statements of [...]
26 Oct
Accounting for fixed assets
1. The items determined in accordance with the definition in paragraph 6.1 of this Standard should be included under fixed assets in financial statements. 2. The gross book value of a fixed asset should be either historical cost or a revaluation computed in accordance with this Standard. The method of accounting for fixed assets included [...]
26 Oct
Revenue recognition
1. This Standard deals with the bases for recognition of revenue in the statement of profit and loss of an enterprise. The Standard is concerned with the recognition of revenue arising in the course of the ordinary activities of the enterprise from – the sale of goods, – the rendering of services, and – the [...]
26 Oct
Construction Contracts
1. This Standard should be applied in accounting for construction contracts in the financial statements of contractors. 2. The following terms are used in this Standard with the meanings specified: 2.1 A construction contract is a contract specifically negotiated for the construction of an asset or a combination of assets that are closely interrelated or [...]
26 Oct
Depreciation Accounting
1. The depreciable amount of a depreciable asset should be allocated on a systematic basis to each accounting period during the useful life of the asset. 2. The depreciation method selected should be applied consistently from period to period. A change from one method of providing depreciation to another should be made only if the [...]
26 Oct
Prior Period and extraordinary item and change in accounting policies
1. This Statement should be applied by an enterprise in presenting profit or loss from ordinary activities, extraordinary items and prior period items in the statement of profit and loss, in accounting for changes in accounting estimates, and in disclosure of changes in accounting policies. 2.The following terms are used in this Statement with the [...]
