Ias.docx

IAS 16 : Property,plant&equipment IAS 36: Impairment asset(loss in value of an asset) (its not covered by depreciation which is regular reduction of value of an asset) (this is physical damage of an asset)

3 main reasons why depreciation is necessary? To know the replacement cost of an asset To know the true and fair value of concern To know the net income and calculate exact tax(why because it lower the taxes) Which is not under impairment: IAS2: Inventories IAS13: Investment IAS7: WIP of construction contracts IAS15: plan asset (NRV) IAS22: DTA (deferred Tax Asset) Impairment= carrying value of an asset-Recoverable amount

Cost-Accumulated depreciation (Book value of the asset) IAS7: cashflow statement:how is the business generating money 1. Cash 2. Bank balances Any short term investment which can be convertible in to cash (holding period is < 3 months) It not following accrual principal It divided into 3 parts: 1. Operating activities: purchases, sells, salaries exp,general exp (day to day operation of the business which due to the profit & loss) 2. Investing activities: equity of share of any other company, give loan & get interest for bank interest is operating activities 3. Financing activities :