Teaching liabilities

Paul Jennings gives some useful tips and sequences for teaching liabilities. Image by cocoparisienne from Pixabay The elements of financial statements are the building blocks of financial statements.  If your students understand what the elements are then they will understand the basis for reporting events in financial statements. Those elements - assets, liabilities, equity, income… Continue reading Teaching liabilities

The nature of assets

Photo by Krisztina Papp on UnsplashA retailer has recognisable rights to its retail units even though it does not own the shopping centre. The elements of financial statements are the building blocks of financial statements.  If your students understand what the elements are then they have a good basis for understanding how events are reported… Continue reading The nature of assets

Depreciation

Paul Jennings gives some tips on how to explain the nature of depreciation to students.

Explaining “qualitative characteristics” from the IFRS Conceptual Framework for Financial Reporting

Helping students to understand, rather than just memorise, IFRS principles The IFRS Conceptual Framework underpins what international financial reporting standards say and why they identify a particular accounting treatment. Students must understand this if they are to understand wider IFRS principles. An important aspect of the Conceptual Framework is an attempt to define "high quality" information,… Continue reading Explaining “qualitative characteristics” from the IFRS Conceptual Framework for Financial Reporting

Goodwill explained in three words

Goodwill represents those ‘unidentified flying assets’ that can't be individually identified. Goodwill is one of those slippery concepts that accounting students can find confusing.  Accounting for goodwill brings the student in front of a number of difficult questions and misconceptions in accounting, such as the nature of an asset and the different accounting treatment of… Continue reading Goodwill explained in three words