Notes and Summaries for Financial Reporting || 1

Accounting For Deferred Taxes  Notes

The need for deferred tax accounting arises because companies often postpone or pre-pays taxes on profits pertaining to a particular period.  

Deferred tax liability
There may be a difference in the way certain items of expense are allowed to be treated for tax purposes and how a company actually treats them.

28 Special points to Remember in Amalgamation

Here are 28 Special Points you must remember in the Amalgamation, Absorption and Reconstruction of the company

Accounting for Amalgamation Absorption Reconstrction

Notes on accounting for amalgamation, absorption, reconstruction calculate purchase consideration with Net Assets, Payment Intrinsic value methods in nature of merger and acquisition

Accounting for Branch

Classification of Branch. Accounting for the branches and notes .

Liquidation Of Companies

This notes cover the order of the settlement of liability during the liquidation of company and basis of the remuneration given to the liquidators of the company

Departments and Departmental Accounting

In case different business activities are carried out under one roof/building in the same business name, It will be treated as one business unit. Each such business activity/division is known as department.

Accounting for Electricity Company

Electricity Company accounts are prepared by following the double accounting system. Accounts are made on Double Accounting System because a Public Utility company cannot invest in fixed Assets until & unless it arranges for some long-term liabilities. In other words such companies cannot use its short-term fund for financing fixed assets. Thus in this system of accounting the:

Insurance Claim

Types of Insurance, Calculation of insurance claim for loss due to fire, average clause in Insurance Claims

Partnership Accounts and accounting for the partnership

A partnership can be defined as a form of business organization in which two or more people join together to carry on a business with a view to make profit.

The way to prepare the accounts of partnerships is similar to that of other trading concerns.  However, in partnerships,