Overview If you take a look at a bank’s balance sheet, you wouldn’t find the inventory line in it. However, it doesn’t mean banks do not have inventory. Like other consumer service industries, banks do not have tangible inventory. Cash reserves at bank vaults and deposited with the central banks are the only physical inventory […]

Definition: Depreciation is the method the company uses to spread an asset’s cost over its useful life. The cost of assets spreads over the period because of the economic value of the assets reduces due to their usage. For tangible assets the term is used depreciation, for intangibles, it is called amortization. Accounting depreciation or

Overview The International Financial Reporting Standards (IFRS) are governed and issued by the International Accounting Standard Board (IASB). Assets and liabilities are key components of a balance sheet for any company. However, these assets and liabilities must be recognized and reported according to the IFRS rules. Further, assets can be classified into different categories. Each

Definition: An accounting assumption is a set of rules that helps to ensure financial reports of the business are prepared in line with applicable accounting standards. It lays a strong foundation for consistent, reliable, objective, and valuable financial information. Accounting assumptions provide a basis for consistency and reliability that helps readers of financial statements compare

The formation of a financial statement is initiated by recording a double entry in the accounting system. When the business carries out some activity, an accounting record must be updated. An activity may be referred to as the occurrence of some business-related event that needs to be recorded as a transaction in the accounting record.

Overview: The first thing that comes to mind when one thinks about the business transaction in terms of accounting is accounts title. These are the building blocks of a whole accounting system. Every time an accountant posts some accounting entry in the system, these account titles are updated to reflect the impact of the transaction.

Introduction Recording credit card details into accounts is a very complex task. Laws and regulations require that details of each transaction of every credit card must be recorded in detail. They are recording a single credit card single statement into the credit issuer’s account, such as Amex or Bank of America. While the credit card