THE COURT OF APPEAL OF KENYA

THE COURT OF APPEAL OF KENYA

Establishment: The Court of Appeal is established under Article164 of the Constitution of Kenya 2010.

Composition: The Court of Appeal consists of a number of judges, being not fewer than 12 (twelve), as may be prescribed by an Act of Parliament and the Court is to be organized and administered in the manner prescribed by an Act of Parliament. The Court comprises of a President of the Court of Appeal who is elected by the judges of the Court of Appeal from among themselves. The Court of Appeal Judges retire at the age of 70 years.

Jurisdiction:

The Court of Appeal is a superior court of record therefore it sets precedents. It has limited original jurisdiction. It was created to hear appeals from the High court.

The only moment the Court Appeal can have original jurisdiction is in punishment for contempt of court, and when stating execution of orders of the High Court.

Procedure:

An uneven number of at least three judges shall sit for the determination of any matter by the court. The decision of the court shall be according to the opinion of a majority of the judges who sat for the purposes of determining that matter.

The court has powers to:

i Determine a case finally.

ii Order for a trial.

iii.Order for a re-trial.

iv.Frame issues for the determination of the High Court.

v Receive additional evidence or order that it be taken by another court.

SUPREME COURT OF KENYA

THE SUPREME COURT OF KENYA

Establishment of the Court: The Supreme Court is established under Article 163 of the Constitution as the final arbiter and interpreter of the Constitution
Composition of the court: The Court comprises of the Chief Justice, who is the President of the Court, the Deputy Chief Justice, who is the Vice-President of the Court and five other Judges.

Jurisdiction:

          i.            Exclusive original jurisdiction to hear and determine disputes relating to the elections to the office of President arising under Article 140 of the Constitution.

        ii.            The Court has appellate jurisdiction to hear and determine appeals from the Court of Appeal and any other court or tribunal as prescribed by national legislation. However appeals can only be;

      iii.            As a matter of right where the case involves interpretation or application of the Constitution or a matter certified by the Supreme Court or the Court of Appeal as one that involves a matter of general public importance.

      iv.            The Supreme Court may review a certification by the Court of Appeal and either affirm, vary or overturn it.

        v.            Render advisory opinion at the request of the National Government, any State organ, or any County Government with respect to any matter concerning County Government.

      vi.            Determine the validity of a declaration of a state of emergency; an extension of such a declaration or any legislation enacted or action taken in consequence of a declaration of a state of emergency.

    vii.            Appeals from a tribunal constituted under Article 168 of the Constitution on removal of Judges from office.

Objective of the Supreme Court

                                i.            Assert the supremacy of the Constitution and the sovereignty of the people of Kenya;

                              ii.            Provide authoritative and impartial interpretation of the Constitution;

                            iii.            Develop rich jurisprudence that respects Kenya’s history and traditions and facilitates its social, economic and political growth;

                            iv.            Enable important constitutional and other legal matters, especially matters on transition to the new Constitution be determined with due regard to the circumstances, history and cultures of the people;

                              v.            and Improve access to justice.

Seat of the Court:

 The Court sits in Nairobi at the Supreme Court building and is deemed to be properly constituted for purposes of its proceedings when five of the judges are sitting.

 Being the highest court in the land, all other courts are bound by its decisions

Limitations of Accounting.

main limitations of Accounting.

1. Accounting records only those transactions which can be measured in monetary terms.

2. Accounting transactions are recorded at cost in the books.The effect of price level changes is not brought into the books with the result that comparison of the various years becomes difficult. For example, the sale to total asset in 2009 would be much higher than in 2002 due to rising prices , fixed assets being shown at the cost and not at market price.

3. Accounting statements are prepared by following basic concepts and conventions. Therefore the accounting information may not be realistic.

4. Accountant may select any method of depreciation , valuation of stock, amortisation of fixed assets , treatment of deferred revenue expenditure. Therefore accounting statements are influenced by the personal judgement of the accountant.

Accounting Information Users

Users Of Accounting Information

The basic objective of accounting is to provide information which is useful for persons inside and outside the organisation.Accounting provides the information to the external and internal users which may base decisions that results in the allocation of economic resource in society.


External users of accounting information are those groups or persons who are outside the organisation for whom accounting function is performed.Internal users of accounting information are those persons or groups who are inside the organisation.

External Users of accounting information :

1. Investors : Those who want to invest money in an organisation want to know the financial health of the organisation. They need accounting information which will help them in evaluating past performance and future prospects of the organisation.

2. Creditors : Creditors means supplier of goods and services on credit , banks and lenders of money who want to know the financial position of a concern before providing loans or granting credit.They need accounting information relating to current assets , quick assets and current liabilities which is available in the financial statements.

3. Members Of Non Profit Organisations : Non profit organisations such as hospitals , clubs , schools, colleges etc. need accounting information to know how their contributed funds are being utilised. This information helps them to make decision regarding future support.

4. Government : Government wants to know earnings or sales for a particular period for the purpose of taxation. Income tax returns are examples of financial reports which are prepared with information taken from accounting.

5. Research Scholars : Accounting information helps research scholars who wants to make a study into the financial operation of a particular firm.

Internal Users Of Accounting Information

Internal users of accounting information are persons related to the organisation itself.

1. Owners : Business owners want to know whether their funds are being properly used or not. Accounting information helps them them to know the profitability and the financial position of the concern in which they have invested their funds.

2. Management: Accounting information is called the eyes and ears of management.It helps a manager in appraising the performance of the subordinates.

3. Employees : Employees of the organisation can get the actual information about the financial position of their organisation with the help of financial statements prepared by the accountant.

Accounting Classification

Accounting Classification

Accounting may be classified into :

1. Financial Accounting:

Financial accounting is maintained to record business transactions in the books of accounts so that operating results and financial condition for a particular period on a particular date can be known.

2. Cost Accounting:

The process of accounting for cost which begins with recording of expenditure and ends with the preparation of statistical data is called cost accounting.

3. Management Accounting:
Management accounting is related to the use of accounting data collected with the help of financial and cost accounting for the purpose of policy formulation , planning , control and decision making by the management.

Accounting Functions

  Accounting Functions 

Accounting  performs two distinct functions.

1. Historical Function Of Accounting

Historical function of accounting relates to recording , classifying , summarising , analysing and interpreting past transactions. This functions reports at regular intervals to managers , owners and other parties by means of financial statements.

2. Managerial Function Of Accounting

Managerial function of accounting is helpful in planning future activities of the organisation and in controlling daily operations by comparing the actual results with pre-determined standards. This is done with a view to promoting maximum operational efficiency.

Objectives Of Accounting

Objectives Of Accounting

The main objective of accounting is to provide information about the financial condition of the organisation to internal and external users.

Other objectives of accounting are as follows.

1. Accounting helps on making decisions concerning more rational acquisition of limited resources through better decision choices.

2.Accounting helps for efficient use of available resource through prompt detection of inefficiencies.

3.Accounting helps for more equitable distribution of resources.

4.Accounting helps to make policy decisions relating to change in the system.

5. Accounting helps discharge of the social responsibilities of the business and industry.

6.Accounting Provides accounting data to the Government for taking decisions on excise duties, sales taxes etc.