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1. FINANCIAL
ACCOUNTING
STANDARDS
BY: BBA 2-YEARS

2. FINANCIAL ACCOUNTING STANDARDS ARE DEFINED RULES OR PRINCIPALS GOVERNING THE
ACCOUNTING OF ECONOMIC TRANSACTIONS. THEY ARE USUALLY ISSUED BY A COUNTRY'S OWN
ACCOUNTING STANDARDS BOARD OR SIMILAR NEUTRAL ORGANIZATION

3. GAAP
Generally accepted
accounting principles, or
GAAP, are standards that
encompass the details,
complexities, and legalities
of business and corporate
accounting.

4. IFRS
International Financial
Reporting Standards (IFRS)
are a set of accounting
standards that govern how
particular types of transactions
and events should be reported
in financial statements. They
were developed and are
maintained by the
International Accounting
Standards Board

5. GAAP VS IFRS
GAAP IFRS

6. STANDARDS OF IFRS
1. REVENUE RECOGNITION
The revenue recognition principle, a feature of accrual accounting, requires
that revenues are recognized on the income statement in the period when
realized and earned—not necessarily when cash is received.

7. 2. ASSET
CLASSIFICATION
Asset classification is a
process for systematically
segregating the assets into
various groups, based on the
nature of the assets, by
applying the accounting rules
to make proper accounting
under each group.

8. 3. ALLOWABLE METHOS FOR DEPECIATION:
DEPRECIATION IS THE SYSTEMATIC ALLOCATION OF THE
DEPRECIABLE AMOUNT OF AN ASSET OVER ITS USEFUL
LIFE.
4. WHAT IS CONSIDERED DEPRECIABLE
DEPRECIATION COMMENCES WHEN AN ASSET IS IN THE LOCATION AND CONDITION THAT
ENABLES IT TO BE USED IN THE MANNER INTENDED BY MANAGEMENT.

9. 5. LEASE CLASSIFICATION
LEASES ARE CONTRACTS IN WHICH THE PROPERTY/ASSET OWNER ALLOWS ANOTHER PARTY TO USE THE
PROPERTY/ASSET IN EXCHANGE FOR SOME CONSIDERATION, USUALLY MONEY OR OTHER ASSETS
6. OUT STANDING SHARE MEASUREMENT
SHARES OUTSTANDING REFER TO A COMPANY'S STOCK CURRENTLY
HELD BY ALL ITS SHAREHOLDERS, INCLUDING SHARE BLOCKS HELD
BY INSTITUTIONAL INVESTORS AND RESTRICTED SHARES OWNED BY
THE COMPANY'S OFFICERS AND INSIDERS.