Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Materiality Concept:
There are several events in business that are trivial or insignificant in nature. The cost of reporting and recording such events will not be justified through the usefulness of the information derived. The materiality concept holds such items of small importance require not be specified strict theoretically accurate treatment. For illustration, a paper stapler costing Rs. 30 may last for three years. Though, the effort included in allocating its cost over the three-year period is not worth the profit than can be derived from this operation. As the item clearly is immaterial when associated to overall operations, the cost incurred on this may be reacted as the expense of the period wherein it is acquired. Several of the stationery purchased for office utilize in any accounting period may continue unused at the end of such period. In accounting, the amount spent in the entire stationery would be reacted as an expense of the period wherein the stationery was purchased, notwithstanding the actuality that a tiny part of it still lies in stock. The value or cost of the stationery lying in stock would not be reacted as an asset and carried forward like a resource to the subsequently period. The accountant would regard the stock lying not used as immaterial. Thus, all amount spent on stationery would be considered as the expense of the period wherein such expense was incurred.
Where to sketch the line in between immaterial and material events is a matter of judgment and common sense. There are no rigid rules in this respect. Whether a specific item or occurrence is material or not, must be determined by considering its association to the other items and the surrounding conditions. This is desirable to establish and obey uniform policies governing such matters.
Solution Manual
Generally Accepted Auditing Standards (GAAS) - Standards set by AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA) which concern AUDITOR'S professional qualities and judgme
what all things do we have to treat in revaluation account
Q. What do you mean by Overhead? Overhead -- a cost that doesn't vary with the level of production or sales and generally a costnot directly involved with sales or production.
What is the implication of applying accounting concepts wrongly
office supplies on hand at year-end amounted to 3000.
State unemployment tax This is referred to as SUTA (State Unemployment Tax Act). The taxes are paid to the state in which employer conducts business. This rate varies from stat
Q. Example of Unearned service fees? Unearned service fees On December 7 Micro Train Company received USD 4500 from a customer in payment for future training services. The firm
Q. Explain about lower-of-cost-or-market method? The lower-of-cost-or-market (LCM) method is the inventory costing method that values inventory at the lower of its historical c
I need an experts advice, I''m nearly finished with my Dissertation on IAS 40 - but I need some more guidance on issues with the standard and how it can be improved
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd