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Flashcards in Frameworks and ethical principles Deck (16):
1

what are the 3 fundamental qualitative characteristics

relevance
faithful representation
materiality

2

meaning examples of faithful representation

does it do what it says it does
examples:
complete
neutral
free from error

3

materiality

that leaving out information or getting it wrong could lead to users making wrong decisions

4

what are the 4 enhancing qualitative characteristics

comparability
verifiability
timeliness
understandability

5

what are the 5 elements of financial statements

assets
liability
equity
income
expenses

6

definition of asset

a resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity

7

definition of liability

a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefit

8

definition of equity

the residual interest in the assets of an entity after deducting all of its liabilitys

9

definition of income

increases in economic benefits in the form of outflows or enhancements of assets or decreases of liabilitys that result in increases of equity other than those relating to contributions from equity participants

10

definition of expenses

decreases in economic benefits in the form of outflows or depletions of assets or decreases of liabilities that result in decreases in equity, other than those relating to distributions to equity participants

11

5 fundamental pinciples of being ethical

integrity
objectivity
profesional competence and due care
confidentiality
profesional behaviour

12

def of integrity

profesional honest in all relationships

13

def of objectivity

you can not allow bias, conflict of interest affect your decisions

14

def of professional competence

you must maintain professional knowledge and skill at the level required

15

def of confidentiality

must not disclose information unnecessarily

16

def of profesional behaviour

must avoid any action that may bring disrepute to the profesion