Module 3: Financial Statements Flashcards
(102 cards)
IAS1 stipulates that all items of income and expense recognised in a period should be included in profit or loss unless a ________ or __________ requires otherwise.
Standard; Interpretation;
Disclosure of items can appear in:
- The f_______ s________
- In a ____ to the f________ s________
- R________ f_____ are given
Disclosures are also specified by o_____ S________
financial statements;
note; financial statements;
Recommended formats;
other Standards;
All IASs/IFRSs apply only to the main ________ _________ and related _____.
The entity should _______ each financial statement and the _____ very clearly.
financial statements; notes;
identify; notes;
IAS1 also requires disclosure of the following information in a prominent position:
- N___ of the reporting entity
- Whether the accounts cover a s_____ e____ only or a _____ of entities
- D___ of the reporting period
- P________ c_______
- L___ of r________ used
Name;
single entity; group;
Date;
Presentation currency;
Level; rounding;
IAS1 states financial statements should be prepared ________. If this is not followed, the entity should disclose:
- The _______ why a period other than ___ year is used; and
- The fact that amounts presented in the financial statements are not entirely _________
annually;
reason; one;
comparable;
Items which must appear in a statement of financial position according to IAS 1:
a) p______, p____ and e_______
b) i_______ p_______
c) i_______ a______
d) f________ a_____
e) I_______ accounted for using the ______ method
f) b_______ a______
g) i_________
h) T____ and o_____ r__________
property, plant; equipment;
investment property;
intangible assets;
financial assets;
investments; equity;
biological assets;
inventories;
Trade; other receivables;
Items which must appear in a statement of financial position according to IAS1:
i) C___ and c___ equivalents
j) a_____ classified as h___ for s___ under IFRS _
k) t____ and o_____ p_______
l) p______
m) f______ l_________
n) c______ t__ l_________
o) d_______ t__ l________
p) l________ included in d______ g_____ under IFRS _
q) n__-c________ i_____
r) Issued ______ and ________
cash; cash;
assets; held; sale; 5;
trade; other payables;
provisions;
financial liabilities;
current tax liabilities;
deferred tax liabilities;
liabilities; disposal groups; 5;
non-controlling interests;
capital; reserves;
An asset should be classified as a current asset when it:
- Is expected to be realised in, or h___ for s___ or consumption in, the n______ c_____ of the entity’s o_______ c_____
- Is held primarily for t_____ purposes or for the ______ term and expected to be realised within _ _ months of the reporting period; or
- Is c___ or a c____ e________ a____ which is not restricted in its use
held; sale; normal course; operating cycle;
trading; short; 12;
cash; cash equivalent asset;
Non-current assets include:
- t______ assets
- i_______ assets
- o_______ assets, and
- f_______ assets
of a ____-____ nature
tangible;
intangible;
operating;
financial;
short-term;
The operating cycle of an entity is the time between the acquisition of ______ for processing and their realisation in c___ or c___ equivalents
assets; cash; cash;
Current assets therefore include i_________ and t____ r________ that are sold, consumed and realised as part of the normal o_______ c____.
This is the case even when they are ___ expected to be realised within _ _ months.
inventories; trade receivables; operating cycle;
not; 12;
A liability should be classified as a current liability when it either:
- Is expected to be settled in the normal course of the entity’s o_______ c_____
- Is held primarily for the purpose of _______
- Is due to be settled within _ _ months after the reporting period;
- The entity does not have an u________ r____ to defer settlement of the liability for at least _ _ months after the reporting period
operating cycle;
trading;
12;
unconditional right;
12;
Some current liabilities as part of w______ c______ used in the n_____ o_______ c_____ of the business are classified as c______ l________ even when they are due to be settled more than _ _ months after the end of the reporting period.
working capital;
normal operating cycle;
current liabilities;
12;
Any interest-bearing liabilities that are used to finance _______ ______ on a l___-t___ basis, and that are not due for settlement within 12 months, are classified as ___-_______ __________
working capital; long-term;
non-current liabilities;
IAS1 requires all items of _____ and ______ in a period to be shown in a statement of _____ or ____ and ______ __________ _______
income; expense; profit; loss; other comprehensive income;
The following two items are classified as other comprehensive income:
- R_________ of ___-_______ ______
- F_____ e_______ differences
Revaluations; non-current assets;
Foreign exchange;
IAS1 offers two possible formats for the statement of profit or loss:
- By ________
- By ______
By ________ is more common
function; nature; function;
IAS1 requires that the statement of profit or loss includes the following items:
- R_______
- F______ costs
- Share of ______ and ______ of associates of j_____ v_______ accounted for using the ______ method
- T__ e_______
- A single amount for the total of d_______ o_________
Revenue;
Finance;
profits; losses; joint ventures; equity;
Tax expense;
discontinued operations;
The following items must be disclosed as allocations of profit or loss for the period:
- Profit or loss attributable to ___-________ i______
- Profit or loss attributable to o_____ of the p_____
The allocated amounts must not be presented as items of ______ or _______
non-controlling interests;
owners; parent;
income; expense;
Income and expense items can be offset when, and only when:
- It is p_______ or r_______ by an _ _ _ _
- G___, l_____ and related e______ arising from the same or similar transactions and events are ________, in which case they can be a__________
permitted; required; IFRS;
Gains, losses; expenses; immaterial; aggregated;
IAS1 does not allow the presentation of items as ___________
extraordinary;
Analysis of expenses can be presented as either:
- N_____ of expenses
- F_____ of expenses / c___ of s____ method
Nature;
Function; cost; sales;
The classification by function method:
- Gives more _______ information for users, but
- The allocation of expenses by _______ requires the use of j_______ and can be arbitrary
- Thus using this method, entities should disclose a________ i___________ on the n______ of expenses
relevant;
function; judgement;
additional information; nature;
Whether an entity classifies expenses by function or nature will depend on:
- H_______ and i_____ factors
- The n_____ of the organisation
Historical; industry;
Nature;
