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I. IFRS > IFRS > Flashcards

IFRS Flashcards

IFRS NINJA (57 cards)

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1
Q

International Accounting Standards Borad (IASB)

A
  • Issues IFRS
  • Most Authoritative
  • 1st place MGMT looks for guidance
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2
Q

IASB Framework

A
  • Helps Develop Standards
  • NOT a standard
  • DOESNT SUPERSED ANY STANDARD AUTHORITY
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3
Q

Objective of IFRS Framework

A
  • Provide users W/ Information
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4
Q

IFRS assumes Entity uses what basis of Accounting?

A
  • Accrual
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5
Q

Qualitative Characteristics

A
  • Relevance
  • Faithful Representation
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6
Q

Relevance

(Qualitative Characteristic)

A
  • Makes a Difference to user
  • Predictive value- Predicts Future
  • Confirmatory Value - Evaluates past
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7
Q

Faithful Representation

(Qualitative Characteristic)

A
  • Complete
  • Neutral
  • Free from Error
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8
Q

Enhancing Characteristics

A
  • Comparability
  • Understandability
  • Verifiability
  • Timeliness
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9
Q

Comparability

(Enhancing Characterisitics)

A
  • Allows users to compare different items at different periods
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10
Q

Understandability

A
  • Easy to Understand
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11
Q

Verifiability

A
  • Different people would reach same conclusion
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12
Q

Timeliness

A
  • Information is available in time to make decision
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13
Q

Pervasive Contraint of IFRS

A
  • Cost vs. Benefit
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14
Q

Reporting Elements

A
  • Asset
  • Liability
  • Equity
  • Income
  • Expense
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15
Q

Criteria for Recognition on IFRS Financial Statements

A
  • Probable future economic benefit
  • Can be measured reliably
    • Cost Recovery Method required if value or outcome not be measured reliably
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16
Q

IFRS vs. GAAP (1)

A
  • Comparative FS required
  • No completed contract method
  • No LIFO
  • Statement of Comprehensive Income Required
  • Statement Changes in Equity Required
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17
Q

IFRS vs. GAAP (2)

A
  • Income instead of Rev.
    • Gains not displayed seperately
    • Losses same as expense, but ARE displayed seperate
  • Profit instead of Net Income
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18
Q

IFRS vs. GAAP (3)

A
  • Contracts- Customer Controls assets before Delivery?
    • IFRS– Performance Obligation classification Mandatory
    • GAAP– Optional
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19
Q

IFRS Transitioning (1)

A
  • Date of Transition is 1st reporting period that entity produces full comparative financial statements using IFRS
    • If IFRS was implemented June 2010 for use in the Decemeber 31, 2010 FS, then the Date of Transition is actually January 1, 2009 for a full year of comparative statements
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20
Q

IFRS Transitioning (2)

A
  • For PPE, the Fair Value Method is the most efficieent for converting assets to IFRS
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21
Q

Adjustments made for adopting IFRS get made where?

A
  • The entitys Retained Earnings or Equity
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22
Q

IFRS Current Assets

A
  • Stays the same
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23
Q

IFRS Current Liabilities

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A
  • can be refinanced into a no-current liability if agreement is executed before B/S date
  • GAAP ONLY REQUIRES INTENT, NOT EXECUTION
24
Q

Contingencies

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A
  • Uncertain future events
25
GAAP Contingent Liability
* Probable, Reasonably Possilbe, or Remote
26
IFRS Contingent Liability
* If "Probable" and "Measurable" * Classified as **Provision** * Payment is uncertain in Timing or amount
27
IFRS records Financial Assets using which 3 methods
* Amortized Cost * Fair Value through OCI * Fair Value through Profit or Loss
28
Amortized Cost
* Objective: Collect Cash Flows * Uses Effective Interest Method
29
Fair Value through OCI
* Objective: Sell Financial Assets * Gain or Loss recognized in OCI
30
Fair Value through Profit or Loss
* Objective: Everything Else * Gain or Loss recognized in Profit or Loss
31
Deferred Taxes IFRS
* Uses Liability Method * All Deferred Tax Liabilities must be reported * Only "probable" Deferred Tax Assets can be reported
32
Deferred Tax Assets and Liabilities are
* **Non-current** to the Statement of Financial position * ONLY netted if they are related to same country/taxing authority * EX: China Deferred Tax Assets cant offset Japan Deferred tax liabilities
33
IFRS Tax Rates
* Enacted Tax Rate or Substantially Enacted Tax rate
34
GAAP Tax Rate
* Enacted Tax Rate Only
35
IFRS Income Statement
* Income * Finance Costs * Tax Expense * Discontinued OPs * Profit/loss * Non-Controlling interest in Profit/Loss * Net Profit/Loss attributable to Equity
36
IFRS Comprehensive Income Two Statements Allowed
* Income Statement * Statement of Comprehensive INcome
37
Investment in Subsidiaries are Valued At
* Cost * Fair Value * Equity Method
38
PP&E Valuation IFRS
* Recorded at Cost
39
PP & E Valued using one of two options called
* Cost Model * Revaluation Model
40
PP& E Cost Model
* Asset Carried at Cost - (Accumulated Depreciation and Impairment Loss)
41
Revaluation Model
* Asset is adjusted to Fair Value minus Accumulated Depreciation * Increases in value from the adjustment reported in current period = **Other Comprehensive Income** * Decreases in value from adjustment = **Expense** *
42
Revaluation Model Must
* Asset must be able to be reliably measured * be applied to whole calss of assets, not just one * No guidance on how often assets should be revalued under IFRS
43
Investment Property IFRS
* Initially recorded at Cost * Does NOT include property used in course of business
44
Investment Property IFRS Revalued using
* Fair Value Model * Property is revalued to Fair Value * Profit/Loss is recorded in current period on Income statement
45
Investment Profit/Loss
* Recorded on **Income Statment**
46
PP&E Profit/Loss
* Recorded on **Other Comprehensive Income OCI**
47
Invesment Property IFRS using Cost Model
* Cost Model * Carried at (Cost - Accum. Depreciation) * Fair Value must still be disclosed in the notes to the Financial Statements
48
Operating Leases can be recorded as
* Investment property if measured at Fair Value * All other Investment property must use Fair Value Method if one asset uses it *
49
Intangible Assets valued using one of two options
* Cost Model * Revaluation Model
50
Intangible Assets Cost Model
* Asset Carried at Cost less Accumulated Depreciation and Impairment Loss
51
Intangible Asset Revaluation Model
* Asset is adjusted to Fair Value, less Accumulated Depreciation * Increases in value from adjustment = **Other Comprehensive Income** * Decreases in value from adjustment = **expense**
52
Intangible Asset Revaluation Model must
* Reliably measured * applied to whole class of assets, not just one * no guidance on how often assets should be revalued under IFRS
53
Internally generated Goodwill
* Not Recognized
54
Intangible Assets Amortization
* Intangible Asset has Finite Life * Amortized over Useful Life * Intangible Asset has Indefinite LIfe * NOT AMORTIZED * Tested for Impariment at Reported Date
55
Leases IFRS
* if Substantial Risks of ownership have passed to the LEssee, then the Lease must be accounted as **Finance Lease**
56
Pension Defiend Benefit Plans IFRS
* Project-Unite-Credit-Method calculated the PV of the defined benefit obligation
57
Statement of Cash FLows IFRS
* Interest expense or Finance Costs can be classified as either **Operating or Financing** * **​**Once a class is chosen, ALL future costs must be classified there * Significant non-cash Transactions * Must be included in notes to Financial Statements

I. IFRS (1 decks)

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