A)Discuss 3 key differences between accounting standards applied in UAE for governmental entities and IFRS

A) The primary difference between the two systems is that Accounting Standard is rules-based and IFRS is principles-based. This disconnect manifests itself in specific details and interpretations. Basically, IFRS guidelines provide much less overall detail than accounting Standards. Consequently, the theoretical framework and principles of the IFRS leave more room for interpretation and may often require lengthy disclosures on financial statements.On the other hand, the consistent and intuitive principles of IFRS are more logically sound and may possibly better represent the economics of business transactions.

Perhaps the most notable specific difference between AS and IFRS involves their treatment of inventory. IFRS rules ban the use of last-in, first-out (LIFO) inventory accounting methods. AS rules allow for LIFO. Both systems allow for the first-in, first-out method (FIFO) and the weighted average-cost method. GAAP does not allow for inventory reversals, while IFRS permits them under certain conditions.

B) 1. Salary Expense A/C ...Dr $80000

To Salary Payable /Outstanding Salary $80000

2. Interest A/C ... Dr $250000

To Interest Payble $250000

3. Account Receivable A/c ... Dr $110000000

To Accrued Revenue A/c $110000000

4. Depriciation Expenses A/c ... Dr $40000

To Accumulated Depriciation $40000