Corporate accounting notes calicut university

If it is not practicable to use uniform accounting policies in preparing the consolidated financial statements, that fact should be disclosed together with the proportions of the items in the consolidated financial statements to which the different accounting policies have been applied.

Corporate Accounting BBA III Sem. 18 5.
Distinguishing between items of income and expense and combining them in different ways also permits several measures of enterprise performance to be displayed.
These have differing degrees of inclusiveness.

Like financial statements, ratios also suffer from the inherent weakness of accounting records such as their historical nature

Ratios of the past are not necessarily true indicators of the future

123 Types of Ratios There is a two way classification of ratios: (1) Traditional classification, and (2) Functional classification

The traditional classification has been on the basis of financial statements to which the determinants of ratios belong

Distinguishing between items of income and expense and combining them in different ways also permits several measures of enterprise performance to be displayed

These have differing degrees of inclusiveness