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10 Cards in this Set
- Front
- Back
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What is accrual accounting? |
Revenues and expenses are recorded in the period in which they are earned or incurred |
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What are the fundamental characteristics of the information in financial statements? |
Relevant (predictive or confirmatory value) Faithful representation (Complete, neutral, free from error) |
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Which are the five financial statements? |
1. Income statement (+OCI) 2. Balance sheet 3. SOCIE 4. Statement of cash flows 5. Notes |
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What is included in the Income statement? |
All items of income (revenue and gains) and expense (cost and loss) Profit for the year, later added to retained earnings OCI, added to equity |
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What is included in the Balance sheet? |
Carrying amount of assets, liabilities and equity separated into current and non-current |
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What is included in the Cash flow statement? |
Payments in and out, classified into three: Operating, investing and financial |
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What is included in the SOCIE? |
Changes in share capital, retained earnings, revaluation surplus and the source of the change, ex. dividends, issue of shares, earnings |
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What is included in the Notes? |
Accounting policies: Recognition criteria, measurement methods Additional details Contingent liabilities |
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When are changes in accounting policy permitted? |
It is required by standard or interpretation OR it results in information which is reliable and more relevant |
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Define prospective vs. retrospective |
Prospective: from here on out Retrospective: also includes past |
