To Capitalise or Not to Capitalise (Expenditure)

Deciding whether or not to capitalise expenditure can be tricky…   Almost two decades ago a telecom giant in the USA, Worldcom, fraudulently capitalised computer paraphernalia such as cables and memory sticks.  Compare the two double entries: What was the effect of Worldcom’s approach?  They didn’t debit an expense and were able to overstate their profit.  […]

IAS18 est mort, vive IFRS 15!

IFRS 15 Revenue from contracts with customers IFRS 15 Revenue from contracts with customers is examinable in your AAT exams now, replacing IAS 18 Revenue and IAS 11 Construction contracts.  The good news is that the while there are differences, the overall approach is not significantly different.  The new standard tightens up on practice which […]