Boost for business
4 October, 2014, 12:00 am
A NEW accounting standard was introduced to boost business people and related stakeholders business standards.
Fiji Institute of Accountant chairman Cama Raimuria says this new accounting standard on revenue will make it easy for investors to understand revenue figures.
Mr Raimuria said new standards were introduced to the participants to help financial performance and prospects.
“The new standard will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications and improve guidance for multiple-element arrangements).”
He said it was premised on the understanding that a company needed to assess the contract with a customer, consider the performance obligations that had been contracted to.
“The new standard will ensure investors around the world have comparability when looking at the revenue figure over a range of industries, companies and geographical boundaries.
“Investors rely on key ratios to assess the company’s ability to sustain it in the future,” Mr Raimuria said.
FIA organised a joint technical workshop in Nadi which attracted about 200 participants such as finance accountants, managers, and chief financial officers and business executives.
Various topics were discussed during the two-day — workshop where the participants were addressed and informed on how to have a successful business.
Mr Raimuria said the participants were informed about the different strategies such as broader economic situations and the behaviours of competitors.
“Substitutes are often dismissed as irrelevant or incapable of affecting the current market.
“These strategies are often inappropriate, or easily nullified by competitors.
“They may even lead to business decline or failure when unnoticed substitutes completely change an industry,” Mr Raimuria said.