2. IFRS Flashcards
(33 cards)
What does IFRS stands for?
International financial reporting standards
What’s the IFRS’s independent standard setting body?
International Accounting Standard Board (IASB)
Comparable presentation
G: no. I: yes, prior year
Evaluation cut off date
G: insurance date
I: authorization date
Exception for consolidated stmt
G: no
I: yes
FV can be used for equity method items?
G: yes
I: no
Ok to classify ST liab as noncurrent if financed with LT?
G: yes
I: only if the agreement in place
Contingency liability % and case of a range
G: >70%, lowest in the range
I: > 50%, mid point
LIFO use
G: ok
I: no
Fixed asset revaluation
G: no
I: ok if consistent
Biological assets reported separately?
G: no
I: yes
Impairment approach how many steps?
G: 2 steps
I: 1
What used to compute impairment
G: FV / Carrying Value
I: Recoverable amount / Carrying value
Impairment loss reversible?
G: no
I: yes
ISAB applies to both public and private companies?
Yes
IFRS financial stmts includes..
BS, IS, stmt of changes in equity, stmt of cash flows, note supplemental materials
Elements of financial stmts
G: A, L, E, investments by owners, distribution to owners, comprehensive income, rev, gains, losses
I: A, L, E, income (includes gains and rev), expenses
When does IFRS recognize an item?
Probable and costs/value can be measure realiably
What’s IFRS for SMEs for?
Small and medium size companies. For primarily private companies
Who can use IFRS for SMEs?
Entities that do not have to follow GAAP or IFRS.
Do not hold assets in a fiduciary capacity (no banks, ins companies, brokers/dealers, pension, mutual funds).
Not for not-for-profit, or governmental entities
Financial assets/liab
Use costs more
Cost method and equity method permitted?
Yes
Inventory, which methods?
FIFO and weighted average cost
Interest capitalization during construction of an asset required?
No
