Overview: Other Current Liabilities refer to a type of liabilities that will be due and payable by the entity within one accounting period, i.e., usually in less than 12 months. And it is report inly in the balance sheet in the current liability section. This is in contrast with Other Current Assets, which we discussed […]

Overview: Other Current Assets are a type of assets owned by an entity that can be used to generate income and be converted into cash within one accounting period, i.e., usually in less than 12 months. They are called “Other Current Assets” because they usually represent a very small or insignificant percentage of the total

Overview: Generally, Other Assets are assets that the entity owns and can generate future economic benefit to the entity. Other Assets can be classified into current or non-current depending on the nature of the asset and how it fits into the definition under IAS 1, Presentation of Financial Statements The reason that some of these

Overview: When we are auditing the income statement, one of the items that often draws our attention is Other Income. Other Income is basically an income that is not revenue, which means, not income generated directly from the sale of goods and services of the entity’s primary business operation itself.  There are multiple types of

Overview: According to IAS 38, Intangible Assets are “resources controlled by the entity” which are expected to contribute future economic benefits to the entity, “lack physical substance and are identifiable”. Some examples of Intangible Assets are goodwill, development costs, copyrights, patents, trademarks, and long-term investments.  Except for Intangible Assets with indefinite useful lives, Intangible Assets

Overview: Fixed Assets are a type of tangible non-current assets. Typically, they are the assets with the largest balance on the balance sheet comparing to other assets held by an entity. Fixed Assets are categorised as non-current assets as they have useful lives of 12 months and above. There are many types of Fixed Assets,

When auditors perform an audit of an entity’s financial report, the most important thing that is needed to support the audit opinion is always sufficient appropriate evidence. We called this piece of evidence “audit evidence”. So, what exactly is audit evidence?  To understand this, we need to know what is the standard that auditors use

Overview During the course of the audit, auditors need to ensure that they are able to cover proper ground pertaining to all the elements that are included in the financial statements. This might include various different expenses that are disclosed by the organizations in their financial statements. From the perspective of the auditor, it tends

Overview The year-end audit is often considered to be one of the most cumbersome tasks within an organization. In this regard, it is important for organizations, as well as the auditors, to realize the expansive work involved so that they can prepare for it in an effective manner. When auditing financial statements, auditors are supposed

Overview When auditors begin the audit planning phase, it is important for them to consider the fact that there are several different phases that are included in order to properly execute the auditing process. Therefore, it is important for auditors to ensure that they are able to factor in all the elements within the financial