Regulations and Rules

Question 1

Conceptual Frame work

Answer 1

concepts underlying preparation of FS

Question 2

Key characteristics (concept Frame)

Answer 2

Relevance
Faithful Representation
Verifiability
Timeliness
Comparability
Understand ability

Question 3

IAS 1- Presentation of FS

Answer 3

to provide useful info on FP, performance (SPL) -[ shows mangements stewardship] and cash flow

Question 4

IFRS and fair presentaion

Answer 4

Statements present FP fairly
=> faithful representaition of transactions and events and conditions in accordance w/ Concept Frame

Question 5

ACCRUAL BASIS

Answer 5

recognise assets liabilities, equity , income and expenses when occur not after.

Question 6

ISSB (sustainability standards

Answer 6

new to 2021, firsts focus on environment then hopefully move to social
non-financial disclosures

Question 7

Ethical Requirements

Answer 7

Fundamental principles in IFAC
Integrity
Objectivity
Professional Competance
Confidentiality
Professional Behaviour
ICAEW matches but are guidance not rules!

Question 8

VAT

Answer 8

Irrecoverable - business entertainment and Cars (don’t separate out VAT)
-> VAT on price net of discounts
-> unregistered/small - don’t charge + don’t reclaim VAT

Question 9

Errors (types of)

Answer 9

Transposition
Omission - transaction not included
Principle - wrong account +wrong area
Commission - wrong account same area
Compensating - equal and opposite

Question 10

Suspense A/C

Answer 10

temporary to put things don’t know in
-> MUST clear before closing accounts

Question 11

Shares

Answer 11

• Ordinary
• Preference Irredeemable (treat like equity)
  -Pref. redeemable (Debt share = liability)
  –> both pref get x% of shares each year