Conceptual Framework - ASPE 1000 Flashcards

1
Q

An item is material if it is PROBABLE that its omission or misstatement would influence or change a decision

A

Materiality

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2
Q

Qualitative characteristics (1000.15)

A
  1. Understandability
  2. Relevance
  3. Reliability
  4. Comparability
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3
Q

Information that helps users to predict an entity’s future income and cash flows (1000.17a)

A

Predictive Value

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4
Q

Information that confirms or corrects previous predictions (1000.17a)

A

Feedback Value

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5
Q

Information must be received by the user in reasonable time period to help in making decisions (1000.17b)

A

Timeliness

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6
Q

Reliability is affected by the following

A
  1. Representational faithfulness
  2. Verifiability
  3. Neutrality
  4. Conservatism
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7
Q

Economic substance versus legal form

A

Representational Faithfulness

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8
Q

Correct application of measurement base

A

Verifiability

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9
Q

Free of bias

A

Neutrality

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10
Q

Income in ASPE is called

A

Revenue

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11
Q

ASPE measurement bases

A

Current cost called replacement cost

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12
Q

ASPE Recognition criteria (1000.39)

A
  1. The item has an appropriate basis of measurement and reasonable estimate can be made of the amount involved
  2. For items involving obtaining or giving up future economic benefits, it is probably that such benefits will be obtained or given up
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13
Q

Gains in ASPE are recognized when

A

realized (1000.43)

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14
Q

The process of determining the amount at which an item is recognized in the financial statements (1000.48)

A

Measurement

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15
Q

The amount that would be needed currently to acquire an equivalent asset (1000.49a)

A

Replacement cost

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16
Q

The amount that would be received by selling an asset (1000.49b)

A

Realizable value

17
Q

The discounted amount of future cash flows expected to be received from an asset or required to settle a liability (1000.43c)

A

Present Value