Tag Archives: ACCA F3

What is OCI?

OCI stands for “other comprehensive income”.  Students are expected to be as comfortable with this terminology as they are with “asset”, “liability”, “revenue” or “profit” and yet often they are not.  This isn’t necessarily the student’s fault.  It’s often introduced in a minor way in low level papers and so not much attention is paid to it.  It then becomes assumed knowledge at the next level and so isn’t properly explained.  Understanding it falls through the gap.  Continue reading

What is depreciation?

Depreciation is a word that is used in the general english language as well as a specific technical accountancy term.  They do not always mean the same thing, which can obviously cause confusion.  So from an accounting perspective what is depreciation and what does it mean? Continue reading

How to remember debits and credits?

There are many different ways to remember your debits from your credits.  Here are a couple for you to try: Continue reading

Where does accounting start?

Everything in accountancy starts with the accounting equation:

Assets – Liabilities = Equity

Continue reading