Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Conceptual Framework and Accounting Standards > PAS 8 and 10 > Flashcards

PAS 8 and 10 Flashcards

1
Q

Introduction of PAS 8

A

PAS 8 prescribes the criteria for selecting, applying, and changing accounting policies and the accounting and disclosure of changes in accounting policies, changes in accounting estimates and correction of prior period errors

enhance relevance, reliability and comparability of FS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements (PAS 8.5)

A

Accounting Policies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Hierarchy of Reporting Standards

A
  1. PFRSs
  2. Judgment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

When making judgment, management shall consider:

A

a. Requirements in other PFRSs dealing with similar transactions
b. Conceptual Framework

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

When making the judgment, management may consider:

A

a. Pronouncements issued by other standard-setting bodies
b. Other accounting literature and industry practices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

In the absence of a PFRS that specifically deals with transaction,

A

management uses its judgment in developing and applying an accounting policy that results in information that is relevant and reliable, while considering the applicability of the references listed above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

This assist entities in applying their requirements and states whether it is an integral part of the PFRSs. Integral part of the PFRSs is mandatory.

A

Guidance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

PAS 8 permits a change in accounting policy if the change:

A

a.is required by a PFRSs
b. results in reliable and more relevant information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Change from FIFO to the Weighted Average cost formula for inventories

A

Change in Accounting Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Change from the cost model to the fair value model of measuring investment property

A

Change in Accounting Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Change from the cost model to the revaluation model of measuring property, plant, and equipment and intangible assets

A

Change in Accounting Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Change in business model for classifying financial assets

A

Change in Accounting Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Change in the method of recognizing revenue from long-term construction contracts

A

Change in Accounting Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Change to a new policy resulting from the requirement of a new PFRS

A

Change in Accounting Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Change in financial reporting framework such as from PFRS for SMEs to full PFRSs

A

Change in Accounting Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

The application of ____ for transactions, other events or conditions that differ in substance from those previously occurring

A

NOT Change in Accounting Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Application of a new ___ for transactions, events or conditions that did not occur previously or were immaterial

A

NOT Change in Accounting Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Order of Priority for Changes in Accounting Policies

A
  1. Transitional provision in a PFRS, if any
  2. Retrospective application, in the absence of a transitional provision
  3. Prospective application, if retrospective application is impracticable
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Order of Priority for Changes in Accounting Policies

A
  1. Transitional provision in a PFRS, if any
  2. Retrospective application, in the absence of a transitional provision
  3. Prospective application, if retrospective application is impracticable
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

If entity changes an accounting policy, it shall refer first to ____

A

transitional provision that specifically deals with that accounting policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

If there is no transitional provision, entity shall use ____

A

retrospective application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

If retrospective application is impracticable

A

prospective application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Adjusting the opening balance of each affected component of equity (retained earnings) for earliest prior period presented as if the new accounting policy had always been applied

A

Retrospective Application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Cannot be done after making every reasonable effort to do so

A

Impracticable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Prior period effects cannot be determined or requires significant estimates and assumptions to when the prior fs were prepared, and these are impossible to determine in the current period

A

Retrospective treatment is impracticable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Voluntary change in accounting policy is accounted by ___

A

retrospective application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Early application of a PFRS is ___

A

not a voluntary change in accounting policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Necessary in order to provide relevant information

A

Use of reasonable estimates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Essential part of financial reporting and do not undermine the reliability of financial reports

A

Estimates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

5 that needs estimation:

A

a. net realizable value of inventories
b. depreciation
c. bad debts
d. fair value of financial assets or financial liabilities
e. provisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Need to be revised when new information or more experience is obtained

A

Change in accounting estimate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Adjustment of the carrying amount of asset or liability or the amount of periodic consumption of an asset, that results from the assessment of the present status of, and expected future benefits and obligations associated with, assets and liabilities

A

Change in accounting estimate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Results from change in measurement basis

A

Change in Accounting Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Results from changes on how the expected inflows or outflows of economic benefits are realized from assets or incurred on liabilities

A

Change in Accounting Estimate

34
Q

Change in depreciation method

A

Changes in Accounting Estimates

35
Q

Change in estimated useful life or residual value of a depreciable asset

A

Changes in Accounting Estimates

36
Q

Change in the required balance of allowance for uncollectible accounts or impairment losses

A

Changes in Accounting Estimates

37
Q

Change in estimated warranty obligations and other provisions

A

Changes in Accounting Estimates

38
Q

Change is difficult to distinguish between change in accounting policy and estimate, the change is treated as

A

change in an accounting estimate

39
Q

recognizing the effects of the chane in profit or loss

A

prospective application

40
Q

changes in accounting estimates are account for by

A

prospective application

41
Q

Prospective application in periods:

A

a. period of change; or
b. period of change and future periods, if both are affected

42
Q

Under prospective application, the beginning balance of retained earnings and the previous financial statements are ________

A

not restated

43
Q

Errors that cause financial statements to be misstated

A

material errors

44
Q

errors that are intentional

A

fraud

45
Q

Error in doing something wrong

A

error of commission

46
Q

Error not doing something that should have been done

A

Error of omission

47
Q

errors in current period that were discovered during current period or after but before fs were authorized for issue

A

current period errors

48
Q

To correct current period errors

A
  • correcting entries
49
Q

errors in one or more prior periods that were only discovered either during the current period or after current period but before fs were authorized for issue

A

Prior period errors

50
Q

To correct prior period errors

A

retrospective restatement

51
Q

restating the comparative amounts for the prior periods presented in which error occured

A

retrospective restatement

52
Q

if the error occurred before the earliest prior period presented, restating the opening balances of A,L, OE for the earliest prior period presented

A

retrospective restatement

53
Q

correcting a prior period error as if the error never occurred

A

retrospective restatement

54
Q

applying a new accounting policy as if the policy had always been applied

A

retrospective application

55
Q

If is it impracticable to determine the cumulative effect of a prior period error at the beginning of the current period (retrospective restatement) the entity is allowed to correct _____

A

prospectively

56
Q

Accounting for, and disclosures of, events after the reporting period, including disclosures regarding the date when the financial statements were authorized for issue

A

PAS 10

57
Q

Events favorable and unfavorable, that occur between the end of the reporting period and the date when the financial statements are authorized for issue

A

Events after the Reporting Period

58
Q

Date when management authorizes the financial statements for issue regardless of whether such authorization is final or subject to further approval

A

date of authorization of the financial statements

59
Q

two types of events after the reporting period

A
  1. adjusting events after the reporting period
  2. non-adjusting events after the reporting period
60
Q

events that provide evidence of conditions that existed at the end of the reporting period

A

adjusting events after the reporting period

61
Q

events that are indicative of conditions that arose after the reporting period

A

non-adjusting events after the reporting period

62
Q

The settlement after the reporting period of a court case that confirms that the entity has a present obligation at the end of reporting period

A

Adjusting events after the reporting period

63
Q

The receipt of information after the reporting period indicating that an asset was impaired at the end of reporting period

A

Adjusting events after the reporting period

64
Q

bankruptcy of a customer that occurs after the reporting period may indicate that the carrying amount of a trade receivable at the end of reporting period is impaired

A

Adjusting events after the reporting period

65
Q

The sale of inventories after the reporting period may give evidence to their net realizable value at the end of reporting period

A

Adjusting events after the reporting period

66
Q

The determination after the reporting period of the cost of asset purchased, or the proceeds from asset sold, before the end of reporting period

A

Adjusting events after the reporting period

67
Q

The determination after the reporting period of the amount of profit-sharing or bonus payments, if the entity had a present legal or constructive obligation at the end of reporting period to make such payments

A

Adjusting events after the reporting period

68
Q

The discovery of fraud or errors that indicate that the financial statements are incorrect

A

Adjusting events after the reporting period

69
Q

Adjusting events require _____ of amounts in the financial statements

A

adjustments

70
Q

Non-adjusting require what if they are material

A

Disclosure

71
Q

Changes in fair values, foreign exchange rates, interest rates or market prices after the reporting period

A

Non-adjusting events after the reporting period

72
Q

Casualty losses occurring after the reporting period but before the financial statements were authorized for issue

A

Non-adjusting events after the reporting period

73
Q

Litigation arising solely from events occurring after the reporting period

A

Non-adjusting events after the reporting period

74
Q

Significant commitments or contingent liabilities entered after the reporting period (significant guarantees)

A

Non-adjusting events after the reporting period

75
Q

Major ordinary share transactions and potential ordinary share transactions after the reporting period

A

Non-adjusting events after the reporting period

76
Q

Major business combination after the reporting period

A

Non-adjusting events after the reporting period

77
Q

Announcing, or commencing the implementation of, a major restructuring after the reporting period

A

Non-adjusting events after the reporting period

78
Q

Announcing a plan to discontinue an operation after the reporting period

A

Non-adjusting events after the reporting period

79
Q

Change in tax rate enacted after the reporting period

A

Non-adjusting events after the reporting period

80
Q

Declaration of dividends after the reporting period

A

Non-adjusting events after the reporting period

81
Q

declared after the reporting period are not recognized as liability at the end of reporting period because no present obligation exists at the end of reporting period

A

Dividends

82
Q

PAS 10 prohibits the preparation of financial statements on a going concern basis if management determines after the reporting period either that it intends to liquidate the entity or to cease trading, or that it has no realistic alternative but to do so

A

Going concern

Conceptual Framework and Accounting Standards (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions