Financial Accounting Assignment SUBMITTED TO Prof. M.A. Ganachari
Materiality: To help the users with their decisions Includes informations which affects the decisions of the users. Information is material either due to the amount or importance ofevent.Eg. i) Remuneration paid to the excutives & directors is material.
Modified Accounts It is the shortened versions of full accounts. Small/Medium sized companies can file these with the ROC.
Money Measurement: States that a business should record the transaction if it can beexpressed in terms of money. focus on quantitative information rather than qualitative. Following items cannot be records in accounting transactions: • Employee’s skill level • Product durability • Employee’s working conditions
Minority Interest Portion of equity ownership in a subsidiary not attributable to theparent company. Company has a controlling interest greater than 50% but lessthan 100%.
Book Value: The value of an asset according to its balance sheet accountbalance. Original Cost Less DepreciationExample: Book Value = Cost of the Asset - Depreciation Rs. 90,000 = Rs. 100,000 – Rs. 10,000