Fundamentals of Accounting Accounting and Finance Repository

The general concepts and principles used for revenue recognition are similar between GAAP and IFRS. They differ in the details. GAAP provides specific guidelines for revenue recognition for many different industries whereas IFRS does not. The International Accounting Standards Board illustrates revenue as including both gains and revenues. When working …

Compare and contrast financial and management accounting practices deployed within tourism and hospitality organisations To begin with, management accounting helps in providing information to people within the restaurant or ‘internal parties’ such as managers and directors of the restaurant and helps them take better decisions and increase efficiency and effectiveness …

Introduction Sainsbury is incorporated in the United Kingdom and is listed on the London Stock exchange. It is a public limited Company having financial year 52 weeks to 16 March 2013.  The consolidated financial statements are prepared at the year end to represent the group accounts with the subsidiary figures. …

NPV Net present value is the most used technique of capital investment appraisal. In simple terms, net present value is the value of net cash flows arising from the project after discounting it with discounting factor, also known as the cost of capital. Decision Criteria: A project should be accepted …

International Accounting Standards (IAS) refers to a certain level of quality which should be adhered to while drawing financial statements. The older set of standards, issued by the International Accounting Standards Committee (IASC),  was formulated in 1973 through a consensus of the professional accountancy bodies from Australia, Canada, France, Germany, …

International Financial Reporting Standards (IFRS) is a set of accounting standards developed by the International Accounting Standards Board (IASB). IFRS has been adopted by more than 12,000 organisations in over 100 countries and is becoming the global standard for the preparation of financial statements of public companies throughout the world. However, …

Relevant costs are those expected future costs which vary under various alternatives. Let’s take an example, in the case of whether to retain or replace an old machine, the realisable value and dismantling cost of the old machine are relevant costs but the present written down value (WDV) of the …

There are two flaws in traditional costing. One is that, in traditional costing, the selling price of a product depends solely on the costs. The problem with such method of pricing is that the customers may not find the resulting price acceptable. Also, the competitors may have lower prices or …