How to account for inventories (or stock, as it was formerly called) is covered by the principles of IAS 2, Inventories . In this short article, keeping with the principles of IAS 2, you shall be intimated with notable points on how to account for inventories in the financial INVENTORIES OF ITEMS statements. IAS 2, inventories covers the principles that guide how to account for various types of inventories with the exception of the following items: ·            Work-in-progress on construction contract. ·          Inventory of agricultural produce. ·          Inventory of mineral resources such as crude oil and tin ore. Point 1: Meaning of Inventories Inventories are assets in the form of raw materials used for production, material work-in-progress, finished products held for sale and spares or goods consumed in the process of production or provision of service...

The International Financial Reporting Standards (IFRSs) are the ‘in-thing’ in the world of accounting. With the promulgation of the Financial Reporting Act 2011 (which repealed the Nigerian Accounting Standards Board Act, No 22 of 2003), Nigeria as a nation, joined the bandwagon of countries (more than 150 countries) who have adopted the standards in it entirety or in slightly modified form as the de-facto principles guiding the accounting treatments given to items of transactions and events; and the standards guiding the preparation and presentation of financial statements. This behoves on any accounting students and practicing professional accountants alike to keep abreast of the latest standards as well as the amendments to the subsisting ones. A thorough understanding of the standards is also required in their application to items of transaction and event. This in effect makes accounting a dynamic profession as against it static outlook of yesteryears because it is evolved...

Accounting for income tax and its deferred tax components are the focus of  IAS 12,  Income Tax  . It has been a notorious IAS for student and practitioners alike to grapple with. But in this article cum tutorial we shall look at how it is handled in the financial statements.   Check out the amazing cloud hosting services offered by Truehost  here ! Step 1: What is Income Tax? Income tax is the tax levied on the income of businesses, organizations and individuals. Income tax can be categorized into two (2) namely,  personal income tax  and  company income tax .   Personal income tax is an income tax levied by the government on the income of individuals from different sources such as salaries and wages, rent income etc. On the other hand, company income tax is the income tax levied by the government on the incomes or profits of incorporated businesses.   The focus of this tutorial is how to account for company income t...