The Accounting Rate of Return method is one of the most widely used techniques for investment appraisals and capital budgeting decisions. The accounting rate of return provides you with the return … Read More
While most of the goods or services sold are standardised, there might be cases where two companies enter into a construction contract. International Accounting Standard (IAS) 11 provides a framework … Read More
This accounting tutorial article provides a thorough explanation and analysis of what a bad debt expense is, what journal entry is made, and a look at provisions and recoverable amounts. … Read More
IAS 28 Investments in Associates and Joint Ventures outlines using the equity method of accounting when investing in associates. The first point we should consider is what is an “associate”. … Read More
A good understanding of the accounting equation is a must for those studying accounting. Our article helps you through this with clear explanations and examples.
Break-even analysis is a powerful tool in the management of any business. Still, it does come with several limitations and assumptions, which we will look at today. It is easier … Read More
The Adjusted Present Value approach is a way to determine whether raising debt to undertake a specific project will add value or in other words if it will result in … Read More