What are the criteria to define a reportable segment as per IND AS 108?
An entity should report separately information about an operating segment that meets any of the following quantitative thresholds: ā Its reported revenue, including both sales to external customers and intersegment sales or transfers, is 10% or more of the combined revenue, internal and external, of all operating segments. ā The absolute amount of its reported…...
Non-financial considerations for make or buy decision
In addition to financial considerations, there are several non-financial factors that organizations should take into account when making a make or buy decision. These non-financial considerations play a significant role in determining the optimal choice and ensuring the long-term success of the decision. Here are some key non-financial factors to consider: 1. Core Competencies: Assessing…...
Difference between marginal costing and standard costing?
Marginal costing and standard costing are two different approaches used in cost accounting to analyze and control costs. Here’s a brief explanation of the differences between the two: 1. Definition and Focus: – Marginal Costing: Marginal costing focuses on analyzing the behavior of costs in relation to changes in production volume. It segregates costs into…...
Why audit committee is entrusted with RPT approval and not any other committee
The audit committee is typically entrusted with the approval and oversight of related party transactions (RPTs) due to its specific role and responsibilities within an organization. The audit committee is a subcommittee of the board of directors and is composed of independent directors who possess financial expertise and knowledge of corporate governance practices. There are…...
Non-financial considerations for make or buy decision
When evaluating the make or buy decision, it’s crucial to consider not only financial factors but also non-financial considerations that can have a significant impact on the decision-making process. Some key non-financial considerations include: 1. Control and Flexibility: Making a product or performing a service in-house gives the organization greater control and flexibility over the…...
Difference between capital expenditure and revenue expenditure along with examples and with case study
Capital expenditure refers to the expenses incurred by a company for acquiring, improving, or extending its fixed assets, which are expected to provide benefits over multiple accounting periods. These expenditures are capitalized on the balance sheet and are typically large in nature. Examples of capital expenditures include the purchase of property, plant, and equipment (PP&E),…...