ANALYSIS OF METHODS OF ACCOUNTING FOR FIXED ASSETS ACCORDING TO INTERNATIONAL STANDARDS OF FINANCIAL REPORTING
Keywords:
standard requirements, reporting standards, international reporting, financial statements.Abstract
The International Financial Reporting Standards (IFRS) are a set of accounting rules for public companies with the goal of making company financial statements consistent, transparent, and easily comparable around the world. Fixed assets should be recorded at cost of acquisition. Cost includes all expenditures directly related to the acquisition or construction of and the preparations for its intended use. Such costs as freight, sales tax, transportation, and installation should be capitalized. The standard requires a complete set of financial statements to comprise a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity and a statement of cash flows. Fixed asset information helps in the valuation of the business and forming accurate financial reports with the help of financial analysis.
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