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Flashcards

Conceptual framework

Archimed Nemes ACCA FR (F7) Inglês 46 flashcards

Flashcards do conjunto (46)

  1. 1Why financial statements are produced?to satisfy the requirements of external users,
  2. 2What is the objective of general purpose financial eporting?to provide information about the reporting
    entity that is useful to existing and potential investors, lenders and other creditors in making
    decisions about providing resources to the entity
  3. 3Explain accruals basis.The effects of transactions and other events are recognised when they occur (and not as
    cash or its equivalent is received or paid) and they are recorded in the accounting records and reported in
    the financial statements of the periods to which they relate.
  4. 4What is the underlying assumption in preparing financial statements?Going concern
  5. 5Explain going concernThe entity is normally viewed as a going concern, that is, as continuing in operation for
    the foreseeable future. It is assumed that the entity has neither the intention nor the necessity of
    liquidation or of curtailing materially the scale of its operations.
  6. 6What is difference between fundamental and qualitative characteristics of useful financial information?Fundamental qualitative characteristics distinguish useful financial
    reporting information from information that is not useful or misleading. Enhancing qualitative
    characteristics distinguish more useful information from less useful information.
  7. 7What are two fundamental qualitative characteristics?relevance and faithful representation
  8. 8Explain relevance.Relevant information is capable of making a difference in the decisions made by users. It is
    capable of making a difference in decisions if it has predictive value, confirmatory value or both.
  9. 9Explain materialityInformation is material if omitting it or misstating it could influence decisions that users make
    on the basis of financial information about a specific reporting entity.
  10. 10When information is faithfully represented?information must be complete, neutral and free from error.
  11. 11What are enhancing qualitative characteristics?comparability, verifiability, timeliness, understandability
  12. 12Definition of asset?A resource controlled by an entity as a result of past events and from which future
    economic benefits are expected to flow to the entity.
  13. 13Definition of liability?A present obligation of the entity arising from past events, the settlement of which is
    expected to result in an outflow from the entity of resources embodying economic benefits.
  14. 14What is equity?The residual interest in the assets of the entity after deducting all its liabilities.
  15. 15Explain income?Increases in economic benefits during the accounting period in the form of inflows or
    enhancements of assets or decreases of liabilities that result in increases in equity, other than
    those relating to contributions from equity participants.
  16. 16Explain expenses.Decreases in economic benefits during the accounting period in the form of outflows or
    depletions of assets or incurrences of liabilities that result in decreases in equity, other than those
    relating to distributions to equity participants.
  17. 17What are two conditions for recognising an asset?(a) It is probable that any future economic benefit associated with the item will flow to or from the
    entity
    (b) The item has a cost or value that can be measured with reliability. Regard must be given to
    materiality (see Section 5 above).
  18. 18What is settlement value?The undiscounted amounts of cash or cash equivalents expected to be paid to
    satisfy the liabilities in the normal course of business.
  19. 19What IAS1 says about fair presentaton /compliance- 1?Compliance with IFRSs should be disclosed
  20. 20What IAS1 says about fair presentaton /compliance- 2?All relevant IFRS must be followed if compliance with IFRS is disclosed
  21. 21What IAS1 says about fair presentaton /compliance- 3?Use of an inappropriate accounting treatment cannot be rectified either by disclosure of
    accounting policies or notes/explanatory material
  22. 22What is required for a fair presentation-1?Selection and application of accounting policies
  23. 23What is required for a fair presentation - 2Presentation of information in a manner which provides relevant, reliable, comparable and
    understandable information
  24. 24Main advantages of IFRS - 1?A business can present its financial statements on the same basis as its foreign competitors,
    making comparison easier
  25. 25Main advantages of IFRS-2?Cross-border listing will be facilitated, making it easier to raise capital abroad
  26. 26Main advantages of IFRS-3?Companies with foreign subsidiaries will have a common, company-wide accounting language
  27. 27Main advantages of IFRS-4?Foreign companies which are targets for takeovers or mergers can be more easily appraised
  28. 28What are disadvantages of IFRS?The cost of implementing IFRS
    The lower level of detail in IFRS
  29. 29For which qualitative information disclosure its important?Comparability
  30. 30What is step 1 of IFRS setting process?IASB may establish an Advisory Committee to give
    advice on issues arising in the project.
  31. 31What is step 2 of IFRS setting process?IASB may develop and publish Discussion Papers for public comment.
  32. 32What is step 3 of IFRS setting?IASB would develop and publish an
    Exposure Draft for public comment.
  33. 33What is step 4 for IFRS setting?IASB would issue a final International
    Financial Reporting Standard.
  34. 34Which body is supervisory body for IASB?IFRS foundation
  35. 35Objectives of IFRS foundation 1?develop a set of global accounting standards of high quality which
    are understandable and enforceable
  36. 36Objectives of IFRS foundation 2?promote using and applying these standards
  37. 37Objectives of IFRS foundation 3?bring about the convergence of national and international accounting
    standards.
  38. 38Which body is responsible for issuing IFRS?IASB
  39. 39Which body issues rapid guidance on accounting matters where divergent interpretations of IFRSs have arisenIFRS Interpretations Committee
  40. 40What is the purpose of Conc.Framew a and bTo assist the Board in the development of future IFRSs and in its review of existing IFRSs
    (b) To assist the Board in promoting harmonisation of regulations
  41. 41What is the purpose of COnc Framew c and d?To assist national standard-setting bodies in developing national standards
    (d) To assist preparers of financial statements in applying IFRSs and in dealing with topics that have
    yet to form the subject of an IFRS
  42. 42What is the purpose of COnc Framew c and d?To assist auditors in forming an opinion as to whether financial statements comply with IFRSs
    (f) To assist users of financial statements in interpreting the information contained in financial
    statements prepared in compliance with IFRSs
  43. 43What prevails when they are in conflict? Framework or IFRS?IFRS
  44. 44In which part substance over form is implied?Faithful representation
  45. 45Which one is more detailed - IFRS or FASB?FASB rules
  46. 46Mnemonic for IFRS settingIssues paper
    Discussion paper
    Exposure draft
    IFRS

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ACCA FR (F7) FlashCards sobre Conceptual framework, criado por Archimed Nemes em 12-01-2019.
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Archimed Nemes
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