Accounting Standards Accounting standards Flashcards
IFRS, 16
Leases
A lease must be recorded as a right of use asset if it is high value, and the length of the lease is greater than one year.
Initially recognised at cost, which comprises of the lease liability, plus any payments previously made, any additional direct costs, plus any cost of removing or dismantling the asset at the end of the lease.
The lease liability is initially measured at the present value of the lease payments payable over the last term. Discounted at the rate implicit in the lease. If this cannot be determined, the leasee shall use their incremental borrowing rate.
The right of use asset should be depreciated over the shorter of its useful life and the lease period.
IFRS, five
Non-current assets held for sale
- Measured at the lower of the carrying amount and fair value less cost to sell
Depreciation of an asset to cease when it is held for sale
Separate presentation in the statement of financial position of an asset classified as held for sale.
Seeking – the entity must be actively seeking a buyer
Available – the asset must be available for immediate sale in its present condition.
Likely – the sale must be highly probable
Expected – the sale is expected to be completed within one year 
IAS 10
Events after reporting period
Events which occur between the end of the reporting period, and the date on which the financial statements are authorise for issue.
Adjusting events. Provide evidence of conditions that existed at the end of the reporting period.
Non-adjusting events. These are indicative of conditions that arose after the reporting period Known adjusting events are disclose in a note to the financial statements. 
I a S 16
Property, plant and equipment
- Differentiates between repairs and maintenance and improvement expenditure
Repairs and maintenance to maintain the asset. These costs are expensed
Improvement expenditure please to increase future economic benefits. These costs should be capitalised.
- PPE should be recognised as an asset when it is probable that future economic benefits will flow to the asset and the value of the PPE can be reliably estimated.
- Initially measured at cost subsequently measured either using a cost or revaluation Model and depreciable amount is allocated on a systematic systematic basis over its useful life.
IAS, 36
Impairment of assets
An asset is impaired if it’s carrying amount is greater than it is recoverable am out
Recoverable amount is the higher of the value in use and fair value less cost of disposal.

IAS 2
Inventories
States in the lower of cost and net realisable value
Costs include cost of purchase, cost of conversion and costs incurred in bringing the inventories to the present, location and condition
Net. Realisable value is the estimated selling price in the ordinary course of business, less cost of completion and cost of sale. 
IAS, seven
Statement of cash flows
Prescribes how to present information in a statement of cash flows about how an entity’s cash and cash equivalents changed during the period.
Operating activities – revenue producing activities.
Investing activities – acquisition and disposal of long-term assets, another investments
Financing activities – activities to result in changes in the size and composition of the contributed equity and borrowings of the entity. 
Leases
IFRS, 16
Non-current assets held for sale
IFRS, five
Events after the reporting period
I am a S 10
Property, plant and equipment
I a S 16
Impairment of assess
IAS, 36
Inventories
I AS two
Statement of cash flows
IAS seven
