Conceptual Framework - ASPE 1000 Flashcards
An item is material if it is PROBABLE that its omission or misstatement would influence or change a decision
Materiality
Qualitative characteristics (1000.15)
- Understandability
- Relevance
- Reliability
- Comparability
Information that helps users to predict an entity’s future income and cash flows (1000.17a)
Predictive Value
Information that confirms or corrects previous predictions (1000.17a)
Feedback Value
Information must be received by the user in reasonable time period to help in making decisions (1000.17b)
Timeliness
Reliability is affected by the following
- Representational faithfulness
- Verifiability
- Neutrality
- Conservatism
Economic substance versus legal form
Representational Faithfulness
Correct application of measurement base
Verifiability
Free of bias
Neutrality
Income in ASPE is called
Revenue
ASPE measurement bases
Current cost called replacement cost
ASPE Recognition criteria (1000.39)
- The item has an appropriate basis of measurement and reasonable estimate can be made of the amount involved
- For items involving obtaining or giving up future economic benefits, it is probably that such benefits will be obtained or given up
Gains in ASPE are recognized when
realized (1000.43)
The process of determining the amount at which an item is recognized in the financial statements (1000.48)
Measurement
The amount that would be needed currently to acquire an equivalent asset (1000.49a)
Replacement cost
