Difference Between Financial Reporting and Financial Statements

Difference Between Financial Reporting and Financial Statements

Key Difference – Financial Reporting vs Financial Statements   A business conducts a number of transactions and has many interested parties. The activities of the business become more complicated as it grows, thus a proper mechanism is required to govern such activities. The importance and requirement for transparency in financial activities in companies have increased […]

Difference Between Offer for Sale and Offer for Subscription

Difference Between Offer for Sale and Offer for Subscription

Key Difference – Offer for Sale vs Offer for Subscription   Offer for Sale and Offer for Subscription are two main ways of offering shares to the investors. Although the structure of the two methods is similar, there is a key difference between offer for sale and offer for subscription. In an offer for sale, […]

Difference Between Balance Sheet and Consolidated Balance Sheet

Key Difference - Balance Sheet vs Consolidated Balance Sheet

Key Difference – Balance Sheet vs Consolidated Balance Sheet   Balance sheet is one of the principal year-end financial statements prepared by companies. A consolidated balance sheet is similar to a balance sheet, but there is a difference between them in terms of preparation. The key difference between balance sheet and consolidated balance sheet is […]

Difference Between Share Capital and Share Premium

Difference Between Share Capital and Share Premium

Key Difference – Share Capital vs Share Premium   Issue of shares is a very important decision to a company with the main objective of raising funds for expansion. Share Capital and Share Premium are major components of equity. The key difference between share capital and share premium is that while share capital is the […]

Difference Between Allotment and Issue of Shares

Difference Between Allotment and Issue of Shares

Key Difference – Allotment vs Issue of Shares   Share allotment and share issue are two important criteria for businesses to consider in decisions of raising finance. The key difference between allotment and issue of shares is that an allotment is a method of share distribution in a company whereas share issue is the offering […]

Difference Between Authorised and Issued Share Capital

Difference Between Authorised and Issued Share Capital

Key Difference – Authorised vs Issued Share Capital   The share capital is the main source of raising funds for business. A ‘share’ is a unit of ownership and can be transferred from one investor to another. The key difference between authorised and issued share capital is that while authorised share capital is the maximum […]

Difference Between Trial Balance and Adjusted Trial Balance

Difference Between Trial Balance and Adjusted Trial Balance

Key Difference – Trial Balance vs Adjusted Trial Balance   The trial balance and the adjusted trial balance are two documents that provide a snapshot of all the ending balances of ledger accounts. Trial balance and adjusted trial balance are prepared for a single point of time (eg: As at 31st December 2016). The key […]

How Startup Funding Works

How Startup Funding Works

Startup Funding   A small scale business can be originated by one individual or a group of individuals using their personal wealth. However as the business grows and need to be expanded, more funds will be needed, which is often outside the funding capacity of the original capital contributors. Many investment options available to large […]

Difference Between Issued and Outstanding Shares

Difference between issued and outstanding shares

Key Difference – Issued vs Outstanding Shares   It’s important to know some background information about shares before learning the difference between issued and outstanding shares. A share is a unit of ownership that demonstrates the stake an investor has in the activities of an organization. An investor who is interested in purchasing shares in […]

Difference Between Provision and Contingent Liability

Difference Between Provision and Contingent Liability

Key Difference – Provision vs Contingent Liability   Both provisions and contingent liabilities and also contingent assets are governed by “IAS 37: Provisions, Contingent Liabilities and Contingent Assets”. The objective of creating provisions and contingent liabilities is in line with Prudence concept in accounting where assets and liabilities should be matched against incomes and expenses […]