Karteikarten
Chapter 1
Karten in diesem Stapel (28)
- 1Statement of Financial PositionTo list the assets, liabilities and equity (capital) at the end of the accounting period.
- 2Statement of profit or lossTo measure the financial performance of the company for a particular time period (the accounting period).
- 3Statement of Cash flowsTo link profit with changes in assets and liabilities, and the effect on the cash of the company.
- 4IncomeIncome is increases in assets or decreases in liabilities that results in increases in equity, other than those relating to contributions from holders of equity claims.
- 5ExpensesExpenses are decreases in assets or increases in liabilities that results in decreases in equity, other than those relating to distributions to holders of equity claims.
- 6ProfitsProfits are increases in equity not resulting from contributions from holders of equity claims (shareholders).
- 7LossesLosses are decreases in equity not resulting from distributions to holders of equity claims (shareholders).
- 8AssetsAn asset is a present economic resource controlled by the entity as a result of past events (an economic resource is a right that has the potential to produce economic benefits).
- 9LiabilitiesA liability is a present obligation of the entity to transfer an economic resource as a result of past events (an obligation is a duty or responsibility that the entity has no practical ability to avoid).
- 10EquityEquity is the residual interest in the assets of the entity after deducting all its liabilities.
- 11Accounting equationAssets - Liabilities = Equity
Assets - Equity = Liability
Liability + Equity = Assets - 12Fundamental Qualitative CharacteristicsRelevance and faithful representation.
- 13Enhancing Qualitative CharacteristicsComparability
Verifiability
Timeliness
Understandability - 14ComparabilityEnables users to identify and understand similarities in and differences among items for other years and companies.
- 15VerifiabilityHelps assure users that information is faithfully represented - can be direct (e.g. counting cash) or indirect (e.g. calculating inventory valuations using a method such as FIFO).
- 16TimelinessHaving information available to decision makers in time to be capable of influencing their decisions - generally the older the information is, the less useful it is.
- 17UnderstandabilityThat information is classified, characterised and presented clearly and concisely - financial reports are prepared on the basis that users and their advisers have a reasonable knowledge of business and economic activities.
- 18Accounting conceptsBusiness entity
Materiality
Accruals
Going concern - 19Business entityFinancial statements record and report on the activities of one particular entity, they do not include personal assets and liabilities of those who play a part in owning or running the entity.
- 20AccrualsIncome and expenses are matched so that they concern the same goods or services and the same time period. The SPL shows the amount of income that should have been received and the amount of expense that should have been incurred.
- 21Going concernWill trade for the foreseeable future.
- 22MaterialityLow value items are not worth recording and can be grouped together.
- 23Ethical PrinciplesProfessional behaviour
Integrity
Professional competence and due care
Confidentiality
Objectivity - 24Professional behaviourAccountants should ensure that their behaviour complies with relevant laws and regulations and avoids bringing the profession into disrepute.
- 25IntegrityBeing straightforward and honest in all professional and business relationships.
- 26Professional competence and due careMaintain professional knowledge and skill, act diligently in accordance to current developments in practice, legislation and techniques.
- 27ConfidentialityInformation should not be disclosed to third parties unless there is specific authority or a legal or professional right to disclose.
- 28ObjectivityNot allowing bias, conflicts of interest or the undue influence of others to override professional or business judgements.
Informationen
- Beschreibung
- Karteikarten am Chapter 1 , erstellt von Anja Williams am 13/09/2021.
- Erstellt von
- Anja Williams
- Aufrufe
- 2
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