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The IASB Framework sets out the concepts and principles underlying the preparation of financial statements for presentation to a wide range of users. This framework acts as a guideline, a regulation and sets out the scope of International Accounting Standards. It represents the very foundation of international financial reporting and represents the basis from which all IASs emanate.

The framework consists of the following chapters:

• Objectives of financial statements;
• Qualitative characteristics that determine the decision usefulness of information contained in the financial statements; and
• Definition, recognition and measurement of elements from which financial statements are constructed.

Objectives of financial statements

The objective of financial statements is to provide information on:

·        Financial position;

·        Changes in financial position; and

·        Financial performance of an organisation (continue reading…)

No matter what the IRS does to simplify the tax system, it’s still difficult to understand. You can benefit, however, by making certain that your records are accurate and in order. You don’t have to be a genius at bookkeeping. You simply need to start organizing early and maintain that organization throughout the tax year.
Small businesses are particularly vulnerable at tax time. Often it’s a one-man show and he doesn’t have enough money to hire a full time bookkeeper.  Of course, the other problem is he isn’t versed in taxes and even if he was, his time is precious. There’s two ways to approach the problem to make it simpler. They both involve organization.  Even if you’re not a business owner, these tips also help you to file.

Remember that taxation is on actual profit you make.  The government compares you to the average worker. Everyone has to get to work and home from work. That expense is not deductible. However, if you drive for your job during the day, most workers don’t have to do that and the mileage is deductible. (continue reading…)

All accountants know several terms that create basis for any accounting system. Such terms are T-account, debit and credit, and double-entry accounting system. Of course, these terms are studied by accounting students all over the world. However, any business person, whether an investment banker or a small business owner, will benefit from knowing them as well. They are easy to grasp and will be helpful in most business situations. Let us take a closer look at these accounting terms.

T-Account

Accounting records about events and transactions are recorded in accounts. An account is an individual record of increases and decreases in a specific asset, liability, or owner’s equity item. Look at accounts as a place for recording numbers related to a certain item or class of transactions. Examples of accounts may be Cash, Accounts Receivable, Fixed Assets, Accounts Payable, Accrued Payroll, Sales, Rent Expenses and so on. (continue reading…)