Flashcards : Accounting Standards Framework and IAS — 84 cartes

Rules for measuring transactions and disclosing financial information.

To reduce differences in expression and practice under similar circumstances.

A framework for evaluating professional work quality and responsibility.

Regulating professions, developing standards, training, exams, and boosting confidence.

In 2001.

Sixteen members.

International Financial Reporting Standards and related documents.

It establishes concepts underlying financial statement preparation and presentation for external users.

It addresses objectives, qualitative characteristics, element definitions, recognition, measurement, and capital concepts.

Because it can make a difference in users’ decisions through predictive or confirmatory value.

It requires complete, neutral, and error-free representation of the phenomena.

Comparability, understandability, verifiability, and timeliness.

A resource controlled from past events expected to bring future economic benefits.

A present obligation from past events expected to cause an outflow of economic resources.

The residual interest in assets after deducting all liabilities.

To establish a basis for comparable general-purpose financial statements.

Statement of financial position, profit or loss and other comprehensive income, changes in equity, cash flows, and notes.

Fair presentation and IFRS compliance.

When liquidity-based presentation provides more relevant information, like for some financial institutions.

Expected to be realized, sold, or consumed in the normal operating cycle.

When the entity lacks the right to defer settlement for at least twelve months.

Revenue, gains or losses on derecognition and reclassification of financial assets, finance costs, equity-accounted results, tax expense, and discontinued operations.

Separately by nature and amount, with no item presented as extraordinary.

Work in progress from construction contracts, financial instruments, and biological assets related to agriculture.

Estimated selling price minus estimated completion and selling costs.

The lower of cost and net realizable value.

Costs of purchase, conversion, and other costs to bring inventory to present location and condition.

Purchase price, import duties, non-recoverable taxes, transport, and other acquisition costs minus discounts and returns.

Direct labor and fixed and variable production overheads like depreciation and indirect materials.

When inventory is sold, write-downs or losses occur, or reversals happen.

Specific identification, FIFO, and weighted average; LIFO is no longer used.

A cash flow statement as a component of the financial statements.

Short-term, highly liquid investments readily convertible to known cash amounts with insignificant value risk.

The entity’s principal revenue-producing activities and activities other than investing or financing.

Acquiring and disposing of long-term assets and other non-cash-equivalent investments.

The size and composition of contributed equity and borrowings.

Operating, investing, and financing activities.

Cash receipts from sales, services, grants, fees, commissions, other income, payments to suppliers and employees, insurance receipts and payments, income-tax payments (unless linked to investing or financing), and cash flows from trading contracts.

Direct method discloses major classes of gross cash receipts and payments; indirect method adjusts profit or loss for non-cash items, working-capital changes, and investing or financing items.

Specific principles, bases, conventions, rules, and practices applied by an entity.

New information or developments, not error correction.

Omission or misstatement from failing to use or misusing reliable information available when preparing statements.

Only when required by IFRS or when it provides more reliable and relevant information.

Retrospectively by adjusting opening equity and comparative amounts as if always applied.

In the current period if it affects only that period, or current and future periods if it affects both.

Retrospectively by restating comparative information in the first financial statements after discovery.

Events occurring between the reporting period end and financial statement authorization date.

Adjusting events evidence conditions existing at the reporting date; non-adjusting arise after it.

Adjust recognized amounts in its financial statements.

The date when financial statements are legally authorized for issue, usually board approval.

It confirms impairment at reporting date requiring adjustment of receivable carrying amount.

Do not adjust recognized amounts but disclose material events with nature and financial effect.

Not recognized as a liability at reporting date but disclosed if declared before authorization.

They must not be prepared on a going-concern basis.

A contract specifically negotiated for constructing a single or interrelated assets.

Fixed-price contracts have a fixed price; cost-plus contracts reimburse costs plus a fee.

When separate bids, negotiations, and identifiable revenues and costs exist for each asset.

When negotiated as a single package, interrelated as one project, and performed concurrently.

By reference to the stage of completion at the reporting date with immediate loss recognition.

Revenue is recognized only to the extent of probably recoverable costs incurred.

Reliable measurement of total revenue, probable benefits, remaining costs, and stage of completion.

Revenue, methods, stage of completion, cumulative costs, profits, advances, and retentions.

It transfers substantially all the risks and rewards incidental to ownership of an asset.

It does not transfer substantially all the risks and rewards incidental to ownership.

An agreement giving the lessee the right to use an asset for a period in exchange for payment.

As an asset and liability at the lower of fair value or present value of minimum lease payments.

The lessee’s initial direct costs.

Between finance charges and reduction of the outstanding liability.

To produce a constant periodic interest rate on the remaining liability.

On a straight-line basis over the lease term unless another basis better represents usage.

The currency of the primary economic environment where the entity operates.

Money held and assets or liabilities in fixed or determinable amounts of money.

By multiplying the foreign amount by the exchange rate at the transaction date.

The closing rate.

The transaction-date rate.

The rate when fair value was measured.

In profit or loss in the period they arise.

They are reclassified from equity to profit or loss.

As those of a single economic entity including parent and subsidiaries.

Investments held by the parent or investor.

Statements where investments are accounted for at cost or under IFRS 9 by a parent or investor.

At cost or in accordance with IFRS 9 using the same treatment per investment class.

When the investor’s right to receive them is established.

That fact, its principal place of business and country of incorporation, where consolidated statements can be obtained, significant investments and ownership percentages, and accounting method used.