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 of event.

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 be expressed 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 the parent company.

Company has a controlling interest greater than 50% but less than 100%.

Book Value:

The value of an asset according to its balance sheet account balance.

Original Cost Less Depreciation

Example: Book Value = Cost of the Asset - DepreciationRs. 90,000 = Rs. 100,000 – Rs. 10,000

Thank You !!