Accounting Articles

What is capex? Capex, or Capital expenditure, refers to the financial resources that an entity allocates for acquiring, upgrading, and maintaining tangible assets like property, plants, buildings, technology, or equipment. These funds are typically invested in new...

What is opex? Opex, also known as an operating expense, is a regular and necessary cost a business incurs to maintain its day to day operations. Opex are crucial for the basic functioning of a business and are typically recurring. They cover the essential needs that...

What is goodwill? Goodwill is a type of intangible asset that captures the excess value of an entity beyond its physical assets and liabilities. This excess value comes from elements like the entity's brand reputation, loyal customer base, and the collective expertise...

What are special purpose financial statements? Special Purpose Financial Statements (SPFS) are a type of financial reporting used to convey financial information to a particular group of stakeholders. SPFS are used by certain for-profit private sector entities in...

What are general purpose financial statements? General purpose financial statements (GPFS) are financial reports that present relevant financial information in a standard format to a wide range of stakeholders. Australian Accounting Standards, as outlined in AASB 101...

What are Australian Accounting Standards? Australian Accounting Standards (AAS) are principles and guidelines that regulate financial reporting in Australia. The objective of AAS is to ensure that financial statements are prepared consistently, can be compared easily,...

What is an intangible asset? An intangible asset is an asset that lacks a physical presence or form. These assets cannot be touched, held, or physically manipulated due to their abstract nature. Common examples of intangible assets include items like brand recognition...

What are non current liabilities? Non current liabilities are enduring financial obligations documented on an entity's balance sheet that involve settlements that are scheduled to occur more than twelve months into the future. According to AASB 101, financial...

What are non current assets? According to AASB 101, non current assets are assets that cannot be readily converted into cash within the current fiscal period. Instead, these assets are expected to provide economic value over one or more future fiscal periods. For...