Flashcards in IFRS Deck (50)
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31
Which items are recorded on the Income Statement in IFRS?
Income
Finance Costs
Tax Expense
Discontinued Ops
Profit/Loss
Non-controlling interest in Profit/Loss
Net profit/loss attributable from equity
32
How are property plant and equipment (PP&E) recorded and valued under IFRS?
Recorded at cost
Valued using either:
Cost model - asset carried at cost less accumulated depreciation and impairment loss
Revaluation model - asset adjusted to fair value less accumulated depreciation
33
What are the requirements for using the revaluation model for PP&E under IFRS?
Asset must be able to be reliably measured
Must be applied to whole class of assets not just one asset
No guidance on how often assets should be revalued under IFRS
34
How is investment property reported under IFRS?
Initially recorded at cost
Revalued using either Fair Value model or Cost model
35
How is profit or loss recorded in the current period for investment property under the Fair Value model of IFRS?
Recorded on the Income Statement
Investment P/L : IS
PP&E P/L : OCI
36
Under IFRS how is investment property reported under the Cost Model?
Carried at Cost minus Accumulated Depreciation
Fair Value must still be disclosed in the notes to the financial statements
37
How are leases reported under IFRS?
Operating Leases can be recorded as Investment Property if measured at Fair Value
All other investment property must use Fair Value Model if one asset uses it
38
How are intangible assets valued under IFRS?
Using either the Cost Model (cost less Accumulated Depreciation and Impairment Loss)
or
the Revaluation Model (Fair Value less Accumulated Depreciation)
39
How is internally generated goodwill reported under IFRS?
It is not recognized.
40
How is amortization of intangibles handled under IFRS?
If asset has a finite life it is amortized over useful life.
If asset has indefinite life it is not amortized but is tested for impairment at the reporting date.
41
When must a lease be recorded as a Finance Lease under IFRS?
If the substantial risks of ownership have passed to the Lessee then the Lease must be accounted for as a Finance Lease
42
How are defined benefit plans recorded under IFRS?
Project-unit-credit method calculates the PV of the defined benefit obligation
43
How are interest expense and/or finance costs classified on an IFRS statement of cash flows?
They can be classified as either Operating or Financing
Once a classification is chosen all future costs must be classified there
44
How are significant non-cash transactions recorded on an IFRS statement of cash flows?
They must be included in the notes to the financial statements.
45
Instead of balance sheet, how is it reported in IFRS
Statement of Financial position
46
What is important when looking at inventory for IFRS?
Pg. 7-17
*LIFO is not allowed
*Inventories are valued at lower of cost or NRV (ceiling)
*You can write impairment losses back up
47
How are marketable sercurities classified for IFRS? Pg. 5-7
What is the difference with US GAAP?
Fair value through profit or loss, Available for sale, or held to maturity
There is no "trading"
48
How do you value inventory for IFRS? Pg. 7-17
Lower of cost or net realizeable value
49
Deferred Taxes under IFRS; significance? Pg. 19-10
Always non-current
50
