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Accounting standards and treatments - Introduction

The divorce of ownership and control in businesses leads to a need for some form of assurance of the information presented by the business to the owners. The owners or shareholders of a business rely on the financial statements and annual reports to satisfy themselves of the value or return from their investment in the business. The International Accounting Standards Board have developed a conceptual framework which considers the objective of financial reporting and the qualitative characteristics of useful financial information.

This module examines some of the most common accounting standards that are both applicable to many companies and subject to some degree of subjectivity, including: IAS 16, IAS 17, IAS 36 and IAS 38.

The objectives for this module are:

  • To understand the need and purpose of accounting standards
  • To understand how property, plant and equipment are defined and measured.
  • To understand the difference between a financial and an operating lease
  • To know when a company can record an impairment loss
  • To understand how intangible assets are defined and measured.

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