Simplified Accounting Concepts

Today we discuss about the  Basis of Accounting  - Cash and Accrual Basis of Accounting   .   Accounting is concerned with recording of the financial transactions(which can be measured in terms of money), this deals with the timing of revenue recognition which means when should the revenue be recognized in the books of accounts. There are two approaches of recording the revenues in the books of accounting- Cash basis of accounting and Accrual basis of accounting. Let us discuss and find out the information about Basis of Accounting. Table Of Contents Meaning of Cash Basis of Accounting Under Cash Basis of Accounting the transactions are recorded when cash is received or paid. This system is much more simplified accounting system, cash basis of accounting only recognizes income and expenses, when cash is actually collected and paid. Cash basis of accounting is an accounting system that recognizes and records income and expenses as they are p...

Hello Friends today we learn about  International Financial Reporting Standards(IFRS)  The international Accounting Standards Committee (IASC) found in 1973 which is replaced by International Accounting Standards Board (IASB) in the year 2001 which now issues International Financial Reporting Standards (IFRS) . The objective behind setting up the IASC and later IASB was to develop accounting standards that would be acceptable worldwide to produce and present financial information based on similar accounting standards and improve financial reporting internationally. Table Of Contents Meaning of International Financial Reporting Standards(IFRS) International Financial Reporting Standards(IFRS) are the set of Accounting Standards developed by International Accounting Standards Board (IASB) in the year 2001. IFRS are referred to as principles-based accounting standards because standards issued by IASB are based on sound and clearly stated principle...

Hello Friends, Today we learn  Accounting Standards- Meaning, Concept, Nature, Objectives and Need.  The Institute of Chartered Accountants of India set up the Accounting Standards Board to identify areas of accounting where alternative and diverse practices were followed. Accounting Standards are the set of guidelines that are followed for preparation and presentation of financial statements. Let us discuss these Accounting Standards in more detail. Table Of Contents Meaning of Accounting Standards The accounting standards are the set of Guidelines that is  Generally Accepted Accounting Principles  that are followed by business entities for preparation and presentation of Financial Statements. In short accounting standards are the set of Principles, Procedures and Guidelines that defines the basis of Financial Accounting, Accounting standards guides an Accountant by the set of guidelines, laws and rules which is stated by Generally Ac...