1 Flashcards
(20 cards)
A provision should be recognised when: (3)
IAS 37
1) present obligation from a past event
2) probable outflow of resources
3) estimate is reliable
Which exchange rate is used for initial recognition, the order or the arrival?
IAS 21
Arrival
Name the five fundamental ethical principles:
1) Integrity
2) Objectivity
3) Confidentiality
4) Professional competence and due care
5) Professional behaviour
Integrity
being straightforward and honest in all professional and business relationships
Objectivity
not allowing bias, conflict of interest or undue influence of others to override professional or business judgement
Confidentiality
~ Respecting confidentiality of info acquired as a result of business relationships and not disclosing it to 3rd parties w/o consent.
~ Unless there is a legal or professional duty or right to disclose.
~ Not using the info for personal advantage.
Professional competence and due care
~ maintaining professional knowledge and skill at the required level to ensure client receives competent professional service based on current developments
~ acting diligently and in accordance with applicable technical and professional standards
Professional behaviour
complying with relevant laws and regulations and avoiding any action that would discredit the profession
Are transaction costs included in a bond’s CA?
Yes, add them together
PURP: Parents sells to Sub
Dr P’s RE (SOFP/W5) or P’s COS (P/L)
Cr Group Inventory (SOFP)
PURP: Sub sells to Parent
Dr S’s RE (SOFP/W2) or S’s COS (P/L)
Cr Group inventory (SOFP)
PURP: Parent sells to Associate
Dr P’s RE (SOFP/W5) or P’s COS (P/L)
Cr Investment in Associate (SOFP)
PURP: Associate sells to Parent
Dr P’s RE (SOFP/W5) or Share of profit of Assoc (P/L)
Cr Group Inventory (SOFP)
SOFP: Which adjustments alter W2 Net Assets? (7)
1) PURP Sub=seller
2) FV adj NCA
3) FV adj depn/amort
4) FV adj g/w
5) FV adj cont. liab.
6) FV adj research
7) Accounting policy change
Elements of financial statements.
~ assets ~ liabilities ~ income ~ equity ~ expenses
Enhancing characteristics of F/S (4)
~ Timeliness
~ Comparability
~ Understandability
~ Verifiability
Timeliness
balance between relevant info and timeliness of reporting
Understandability
presented in straightforward manner and easy to understand for all users
Comparability
Identify and understand similarities and differences between items (can include consistency)
Verifiability
assure users that info is faithful representation of economic phenomime it represents
