An ardent reader would most likely attempt to delve beyond the numbers section of financial statements. But to go past the four components of financial statements into the accounting policy disclosures is likely to be too tedious to read. The vocabulary is perhaps too complex for the average non-accounting reader of financial statements to understand. But for most accountants, the section on accounting policy disclosures is nothing more than long-winded boilerplate text that just copies or summarises the IFRS standards…
The largest portion of most organisations’ cash outflows is typically made up of payments for products and services provided on credit terms, or simply Accounts Payable (AP), as it is known in accounting parlance. AP is the amount an organization owes its suppliers for goods or services received but not yet paid for…