Abstract
This chapter focuses on the various standards used for performance measurement. The IAS 18 standard deals with the bases for recognition of revenue in the income statements of enterprises, particularly from the sale of goods, the rendering of services, and the use of resources yielding interest, royalties, and dividends. Revenue does not include realized and unrealized gains from selling/holding noncurrent assets, unrealized holding gains due to changes in the value of current assets, natural increases in agricultural and forest products, changes in foreign exchange rates, discharges of obligations at less than their carrying amount, and unrealized gains from restating the carrying amount of obligations. The IAS 8 prescribes the criteria for selecting and changing accounting policies together with the disclosure and accounting treatment of changes in accounting policies, accounting estimates, and corrections of errors. It enhances the relevance and reliability of financial statements and their comparability, and the nature and amount of a change in accounting estimate and its effect on both current and future periods should be disclosed unless the amount is impracticable to estimate. IAS 33 was published to clarify and standardize the calculation of the bottom line of the earnings per share (EPS), which is published at the foot of the income statement for every listed company in their annual report. This serve as a tool to enhance comparability across listed companies and it only applies to listed companies.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.