An impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount. To determine whether an item of property, plant and equipment is impaired, an entity applies IAS 36 Impairment of assets. That standard explains how an entity reviews the carrying amount of its assets, how it determines the recoverable […]

According to the International Accounting Standards, an intangible asset is an identifiable non-monetary asset without physical substance. The definition of an intangible asset requires an intangible asset to be identifiable to distinguish it from goodwill. Goodwill acquired in a business combination represents a payment made by the acquirer in anticipation of future economic benefits from […]

Inventories are assets: held for sale in the ordinary course of business; in the process of production for such sale; or in the form of materials or supplies to be consumed in the production process or in the rendering of services. Inventories encompass goods purchased and held for resale, including, for example, merchandise purchased by […]

Investment property is property (land or a building — or part of a building — or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both, rather than for: (a) use in the production or supply of goods or services or for administrative […]

Leasing Concept: Leasing (or financial lease) consists on a funding operation though which one of the parts (the lesser) gives to…

Management Accountancy Concept: Management accountancy (also designated by analytical accountancy or also internal accountancy) is one of…

Material concept According to the International Accounting Standards, omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions of users taken on the basis of the financial statements. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The size or […]

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Net realisable value refers to the net amount that an entity expects to realise from the sale of inventory in the ordinary course of business. Fair […]

Net Result Concept Net Result designates the residual result that the company detains on a certain period after deducted the gains (or profits) all expenses (or losses), either being expenses with merchandise purchases, materials and services, expenses with personnel, equipments attrition, funding financial costs, taxes, among others. The use given to the net result can […]

Operating activities are the principal revenue-producing activities of the entity and other activities that are not investing or financing activities. The amount of cash flows arising from operating activities is a key indicator of the extent to which the operations of the entity have generated sufficient cash flows to repay loans, maintain the operating capability […]