Flashcards
FRK 100 Ch1
Flashcards do conjunto (17)
- 1The purpose and status of conseptual framework1. It will help the IASB in creating and reviewing existing IFRS
2. It will help to reduce the number of different ways IFRS permit the accounting for certain transactions and to ensure harmony between all the regulations, accounting standards and procedures relating to the presentation of financial statements
3. Will be helpful to the standard setting bodies in a country when they are setting standards to be applied in that country
4. It will help the people responsible for preparing the financial statements to apply IFRS and to deal with topics which are not yet part of an IFRS
5. It will help auditors to form an opinion on whether the financial statements which they are auditing comply with IFRS
6. It will help users of financial statements to interpret the information contained in the financial statements prepared according to IFRS
7. It will provide interested parties with information about the IASB's approach to the development of IFRS - 2The scope of the conceptual frameworkCovers the following areas:
1. The objective of financial reporting
2. The reporting entity
3.The qualitative characteristics of useful financial information that will enhance and ensure the usefulness if the information presented and disclosed in the financial statements
4. The definition, recognition and measurement of the elements comprising financial statements
5. The concept of capital and capital maintenance - 3Financial position Assets1. A resource
2. controlled by the entity
3. As a result of past events and
4. from which future economic benefits are expected to flow to the entity - 4Financial position Liabilities1. a present obligation of the entity
2. arising from past events
3. the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits - 5Financial position Equity1. The residual interest in the assets of an entity after deducting all its liabilities
- 6Financial performance is presented in1.The statement of profit or loss and other comprehensive income
- 7Financial performance Income1. Increase in economic benefits
2. during the accounting period
3. in the form of inflows or enhancements of assets or decreases in liabilities
4.that result in increases in equity, other than those relating to contributions from equity participants - 8Financial performance Expenses1. decrease in economic benefit
2. during the economic period
3. in the form of outflows or depletions of assets or incurring of liabilities
4. that result in decrases in equity, other than those relating to distribution to equity participants - 9Recognition criteria An item should be recognised in the financial statements if:It meets the definition of an element of financial statement and
1. It is probable that any future economic benefit associated with the item will flow to or from the entity
2. The item has a cost or value that can be measured with reliability - 10Recognition criteria definitionRecognition is the process of recording an item in the statement of financial position of statement of profit or loss and other comprehensive income that meets the element and satisfies the criteria for recognition
- 11Double entry principleRequires that for every debit there should be an equal but opposite credit
- 12MeasurementRefers to determining a monetary amount (eg rand amounts) at which all the elements of a transaction or event is to be initially recognised and subsequently measured in the general purpose financial statements
- 13Historical costIs a measure of value in which the price of an asset on the balance sheet is based on its nominal or original cost
- 14Current costA method in which assets are valued on the basis of their current replacement cost, and increases in their value as a result of inflation is excluded from calculations of profit
- 15Present valueThe value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest
- 16Net realisable valueIs the value of an asset that can be realized upon the sale of the asset, less a reasonable estimate of the costs associated with either the eventual sale or the disposal of the asset in question
- 17Potential users of the general purpose financial statements1. Management
2. Present and potential investors
3. Present and potential employees
4. Present and potential lenders of money
5. Present and potential suppliers and other trade payables
6. Present and potential clients
7. Government and its related organizations
8. The public
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- FlashCards sobre FRK 100 Ch1, criado por Rochelle Blaauw em 28-02-2017.
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- Rochelle Blaauw
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