Financial accounting Assignment

Financial accounting  Assignment Words: 894

Therefore the company started involving in the real estate business since then. The company aims to be focused in bringing the expertise and experience into Property development sector from the Construction industry. The property development Projects of the company includes Lam Adman, Avenue Crest and Titter Crest. 3- Property Management: – the group believes that strata titled properties and also properties with common facilities and areas that are accomplished professionally and efficiently will result in resale or rental value growing higher.

They have the direct involvement in property and building management that gives them full control over the physical state and condition of property which helps investors in achieving their money’s worth from developments of Crest Builders. In addition, the group considerably focuses on delivering buildings with high quality and superior value. 4- Car park Management: – Car park management operations of Crest builders begun recently after the diversification of ordinary activities of the business.

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Car park management began with the finishing point of the maiden development, 3 Two square. The car management of Crest Builders now livers customers comprehensive and professional car park management services starting from the designs of the car park ending to the operations stages of the car park. 5- M Services: – M services of Crest Builders are the Mechanical and Engineering services that the company offers to the users. However this service division is represented by CB Tech (M) Sad Bad.

And they have specialized in Air Conditioning and Mechanical Ventilation services, Electrical services, Firefighting services, Cold water and Plumbing services and Gas services. Revenue and Income Revenue The amount of money that is brought in to the company as a result of their equines activities or ordinary activities is known as Revenue. It is the income that is generated from selling of goods and services or might be from the use of capital or assets associated with the main operations of an organization and are generated without deducting any costs or expenses.

Revenue figure is shown as the first item in the Income Statement from which all the costs incurred to sell the goods or services known as Cost of Goods Sold is deducted to get the Net Income or Gross Profit. However, According to MASS 9 and FRR 1 18, ” Revenue is the gross inflow of economic benefits during the eroded arising in the course of the ordinary activities of an entity when those inflows results in increase in equity, other than increasing relating to contributions from equity participants. Examples of Revenues are Sales, Service Revenues, Fees Earned, Interest Revenue etc. Revenue account is always credited meaning that an increase in Revenue will always credit the account. For example, Revenue for the government could be Revenue from taxation, fees, Fines taken, Inter governmental transfers or grants, revenue from sales of securities, resource rights and so on. Another example is that Revenue of a hotel could be the amount that is received from renting rooms and offering food or beverage to the consumers.

This means that their ordinary activity is renting rooms on their particular basis and providing food to the customers. Revenue for Crest Builder Bertha could be the revenue they get from construction works since Construction works are the main source of revenue for them since their ordinary businesses involve construction even at the first line. However they are also engage in other works such as Property development, Property Management, Car park income and services which also counts as Revenue.

According MASS 9 and FRR 1 18, there are three types of Revenue. They are: 1- Sale of goods 2- Rendering of Services 3- Interest, Royalties and Dividends Income Income is the amount of money that an organization receives in exchange of the goods and services provided. In other words, It is the flow of cash or cash equivalents received from the business activities. Income is also earned through investing capital. Income is used to cover daily expenditures. Therefore, Net Income is the amount left after deducting all the relevant expenditures of the business.

Even though, Income is generally defined as above, the frame work for the preparation and presentation of financial statements defines incomes as “Increases In economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants”. Income includes both revenue and gains as far as the above definition is considered. Gains are differentiated from income as they do not occur from the ordinary activities of the business. For instance, a gain could be surplus from revaluation of a

Non-current Asset and Profit from disposal of a Non-current Asset in which both the cases, it increases equity of the business. Another example of an Income of an Organization let’s say a Hotel which we talked about before can be the compensation received for damages from the government or State because of a natural disaster like Earthquake or Tsunami. The hotel would have no intention on earning any compensation from its ordinary activities since their service is different and compensation is clearly not related to their core business, it cannot be considered as Revenue and is therefore an Income for them.

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